DIFFERENT SIGNALS FROM THE BANK; Goldman Sachs model now points to 4% second-quarter GDP growth
- Jan Hatzius, chief economist at Goldman Sachs, says the firm’s economic model for U.S. GDP is pointing to higher growth after a strong Empire State manufacturing index report Friday.
- The firm’s 4 percent Q2 GDP tracker growth estimate is higher than the CNBC/Moody’s Analytics Rapid GDP Update 3.8 percent average. Read More @ https://www.cnbc.com/2018/06/15/goldman-sachs-model-now-points-to-4-percent-second-quarter-gdp-growth.html
ECB: Solomonic end to QE
With an unprecedented communication twist, the ECB today more or less announced the end of QE. While the real motivation of this step remains unclear in light of increased uncertainty, the door to extend QE into 2019 has not entirely been closed – Read More @ https://think.ing.com/articles/ecb-solomonic-end-to-qe/
Mission Accomplished for the ECB, for Now – Now is all about catching the EURO @ the right time.
The European Central Bank has said it intends to end its bond-buying program at the end of this year. It was the right decision. The aim of the program was to stave off the threat of deflation, and that has been done. Nonetheless, risks remain, and the central bank can’t afford to ignore them.
The euro-zone economy has come a long way since the ECB first launched QE in January 2015. Inflation has gone up from minus 0.6 percent to 1.9 percent — in line with the central bank’s target of close to but below 2 percent. Core inflation, which omits volatile items such as energy, is lower, but this too is changing. In the first quarter of the year, compensation per employee across the currency union rose at a yearly rate of 1.9 per cent, suggesting that inflationary pressures are growing. Read More @ https://www.bloombergquint.com/view/2018/06/15/european-central-bank-calls-time-on-quantitative-easing
WHAT IS THE USD & EUR INDEX SAYING?
Will the USD dominate the market this week again? The chart patterns are completely different from each other – and it look likE the EURO has more downside for now. Trading market is only getting difficult each week. Traders be cautious and always ensure that you protect your trades with good money management.
MONDAY NEWS THAT MOGHT AFFECT YOUR TECHNICAL TRADES.
The market will be having good gaps and quiet morning as China banks goes on holiday.
- 7.50am – Japan will open with their Trade Balance and is expected to be good.
- 5,00pm – Italy will release their trade balance and is expected to be good.
- Tentative – Be cautious and expect volatility when EURO releases German Buba Monthly report.
- 10.00pm – US will release heir Housing market index – expect little or no movement.
- 11.45pm – Canada Council member Patterson will speak; expect volatility in favor CAD.
We expect the market to move sideways and swing on Monday.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.