Goldman Sachs thinks the market is wrong about Fed Chair Powell
- Stocks have been rallying and bond yields falling since Fed Chairman Jerome Powell spoke last week in Jackson Hole, Wyoming.
- Investors took the speech to be a dovish nod toward gradual rate hikes and a Fed that does not see conditions overheating.
- Goldman Sachs economists disagree, saying a recent study warning against ignoring low unemployment could fuel a more aggressive Fed that will hike rates four times in 2019. Read More @ https://www.cnbc.com/2018/08/28/goldman-sachs-thinks-the-market-is-wrong-about-fed-chair-powell.html
Euro Area Inflation: Why Low For So Long? – Time to watch EURO before the year ends.
The euro area economy is in its fifth year of recovery, unemployment is close to its pre-crisis level and the output gaps of most countries have closed. Yet, core inflation continues to be low, notwithstanding temporarily high headline inflation due to higher energy prices. READ MORE @ https://blogs.imf.org/2018/08/28/euro-area-inflation-why-low-for-so-long/
WHAT IS THE USD SAYING?
Bearish Head and Shoulder is in-tact for a fall of USD; the market is still very fragile and we are just waiting for the correction. Canada and Mexico deal for NAFTA is what the market is waiting for. As for tonight GDP will determine where the USD will be heading this week.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL CHARTS.
- 1.00pm – Japan Consumer Confidence – expected to be good. We maintain BUY for JPY.
- 2.00pm – German Consumer Climate – Survey of about 2,000 consumers which asks respondents to rate the relative level of past and future economic conditions, including personal financial situation, climate for major purchases, and overall economic situation – expected to be good.
- 2.45pm – France Consumer Spending and GDP data will be released – little or no change is expected. Little volatility expected in favor for EURO.
- 8.30pm – Canada will release their Current account and is expected to be good. We maintain BUY for CAD.
- 8.30pm – US will release their preliminary GDP & GDP Price index and both expected little or no change.
- 10.00pm – US will release their pending home sales – expect to be weak. We maintain SELL for USD
- 10.30pm – Crude Oil inventories expected to be lower as IRAN sanction is still in-tact. Demand for oil is still strong across the globe.
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