Saudi Oil Production Jumps In June Despite Drop In Oil Demand: OPEC – WHAT IS THE IMPACT ON THE USD?
It will probably not come as a surprise that at a time when both Trump, and Saudi Arabia, are pressing OPEC to reverse the 1.5 year long OPEC agreement and pump more oil so US gasoline prices dont soar in the summer months, that according to the just released monthly report from the cartel, total OPEC production rose by 35.4kb/d to 31.869mmb/d mostly thanks to Saudi output rising by 85.5kb/d (according to secondary) sources to 9.987mmb/d and up a whopping 161.4kb/d as per direct communication, and back over 10 million barrels. Read More @ https://www.zerohedge.com/news/2018-06-12/saudi-oil-production-jumps-june-despite-drop-oil-demand-opec
CHINA SHOWS SIGNS – Fall in China loans signals squeeze on lending to smaller firms
May capped the fourth straight month of contraction in outstanding loans that publicly listed companies got from securities firms through pledging holdings of stock, Moody’s Investors Service data show. While that still left the total, at 1.53 trillion yuan (US$240 billion), near a record, it has been the longest run of declines since the epic 2015 stock market collapse. Read More @ http://www.scmp.com/news/china/economy/article/2150199/fall-china-loans-signals-squeeze-lending-smaller-firms
Trump throws G-7 into disarray with tweets after he leaves – WILL THE USD STILL STAY RELEVANT?
Lashing out at the longtime U.S. ally and northern neighbor, President Donald Trump tweeted that Canadian Prime Minister Justin Trudeau is “dishonest & weak” and that the U.S. was pulling back its endorsement of the G-7 summit’s communique in part because of what he called Trudeau’s “false statements” at a news conference. In an extraordinary set of tweets aboard Air Force One, on its way to Singapore for Tuesday’s summit with North Korea’s Kim Jong Un, Trump threw the G-7 summit into disarray Saturday and threatened to escalate his trade war just as Canada released the G-7′s official communique. Its statement took a generally positive view of the leaders’ positions on trade matters while acknowledging tensions with the U.S. Read More @ https://www.apnews.com/37da7afab7024fdd8d66f164f1f01555/Trump-delivers-warning-on-trade-as-he-leaves-G-7-summit
U.S. Posts Biggest Monthly Budget Deficit in May Since 2009 – USD RALLIED LAST NIGHT – AFTER THIS NEWS.
The U.S. posted a $146.8 billion budget deficit in May, the largest for the month since 2009, as revenue declined. The budget gap rose 66 percent last month from a year earlier, the Treasury Department reported on Tuesday. Spending rose by 10.7 percent to $363.9 billion, compared with a 9.7 percent fall in receipts to $217.1 billion. The government is facing increasing borrowing in the coming years partly due to tax cuts enacted this year and the strain on social and health spending from an aging population. For the first eight months of the fiscal year, the fiscal gap widened to $532.2 billion, up 23 percent from last year’s $432.9 billion deficit. Tax and spending measures approved by President Donald Trump are expected to push the budget deficit to $804 billion in the current fiscal year, from $665 billion in fiscal 2017, and then surpass the $1 trillion-mark by 2020. Read More @ https://www.bloombergquint.com/global-economics/2018/06/12/u-s-posts-biggest-monthly-budget-deficit-in-may-since-2009
WHAT IS THE USD INDEX SAYING?
The USD prepares to rally ahead of FOMC today; be cautious as the market could totally agree that the USD already priced in before the rate announcement and could take a PULLBACK. Based on Technical approach the USD should rally further.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 8.30am – AUD will start with Westpac releasing their consumer sentiment. – we are expecting good data.
- 10.00am – RBA Lowe will speak and we are expecting a hawkish statement rather then a dovish in favor of AUD.
- 4.30pm – UK will release their CPI data – we can expect a massive movement of the GBP today – we believe it will favor the GBP. As we are expecting more then 2.1%.
- 5.00pm – Euro will release their employment data and is expected to be no change.
- 8.30pm – US will release their CORE PPI – It’s a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer; expected to be good in favor of the USD.
- 10.30pm – US will release their crude oil inventories and is expected to be negative in favor for the OIL & CAD.
- THURSDAY – 2AM in the morning will be FOMC – we will update the latest views before 8pm today and how we will trade the market during the FOMC.
Remember if you are trading today; expect massive volatility and ensure that you have proper money management at all times.
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