These are the 2 biggest reasons for a weaker U.S. dollar by market watch.
- Central bankers and the new gang at the Federal Reserve
- Trade policy and the administration’s stance on the dollar
Central bank policy is thought to be one of the biggest drivers of currencies, so the Fed’s hawkishness and expectations for three rate increases in 2018 seem to contradict the buck’s soft performance. But it might be a case of the grass being greener on the other side. of the pond. Read More @ https://www.marketwatch.com/story/these-are-the-2-biggest-reasons-for-a-weaker-us-dollar-2018-01-30
EXPENSES & INFRASTRUCTURE BY PRESIDENT DONALD TRUMP
Trump calls for $1.5 trillion infrastructure bill during State of the Union speech
- President Donald Trump spoke about his administration’s infrastructure plan in his first State of the Union address on Tuesday.
- Details about the plan have been leaked in recent weeks, but the speech marks the clearest picture yet from Trump himself on his vision for infrastructure. Read More @ https://www.cnbc.com/2018/01/30/trump-calls-for-1-point-5-trillion-in-infrastructure-investment.html
U.S. Treasury Secretary Mnuchin urges Congress to raise debt ceiling as another shutdown looms
U.S. Treasury Secretary Steven Mnuchin on Wednesday called on the Republican-controlled Congress to lift the federal debt limit “as soon as possible” so the government can pay employee benefits and other obligations. Read More @ https://www.reuters.com/article/us-usa-fiscal/u-s-treasury-secretary-mnuchin-urges-congress-to-raise-debt-ceiling-as-another-shutdown-looms-idUSKBN1FK1Z8
CHINA PLAYS BIGGER ROLE IN ASIA AND SOON EUROPE AND SOUTH AMERICA – CHINA BEGINS QUALITY FOCUS
As Chinese President Xi Jinping begins his second five-year term, shifting toward “quality growth” is at the top of the country’s policy agenda. Across China’s government, a quiet but resolute commitment to fostering a new growth model that corrects the distortions created by decades of double-digit growth – including corruption, pollution, rising inequality, and other structural imbalances – is taking root. Read More @ https://www.project-syndicate.org/commentary/china-quality-growth-rebalancing-reform-by-andrew-sheng-and-xiao-geng-2018-01
TODAYS NEWS THAT MIGHT AFFETC YOUR TECHNICAL TRADES
- 8.30am – Japan final manufacturing Index data is better then previous month; this is a economic leading indicator for Japan – JPY is looking for direction now – we maintain BUY JPY.
- 9.45am – China will release their CAIXIN Manufacturing PMI and we expecting the data to be better then previous month. We maintain SELL on USDCNH.
- 4.15 – 5.00pm – Spain, France, Germans and the Italian will release the PMI data and is widely expected to be good data. We continue to maintain BUY EUR.
- 9.30pm – US will release Employment & Unit Labor cost – we are expecting a weak data as Donald Trump push for Trillions of Dollars to restructure US back again “MAKE AMERICA GREAT AGAIN”
- 10.30pm – Canada will release their PMI data and we are expecting a good data. we continue to BUY CAD.
- 11.00pm – The night will end with US releasing their Manufacturing data which is expected to be good; however the market will consolidate and await FRIDAY NFP CRITICAL EMPLOYMENT DATA REPORT.
Be cautious as Friday approach NFP. Maintain good money management at all times.
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