Trump won’t play ball on trade, so Europe is going straight to China
- European and Chinese officials are taking steps to strengthen their trade ties.
- In the latest trade row between Europe and the US, Trump threatened a new 20 percent duty on cars built in Europe.
- Though this wouldn’t hit a significant part of carmakers’ profit margins, it would bring further uncertainty to markets. Read More @ https://www.cnbc.com/2018/06/25/trade-war-europe-china-work-together-as-us-threatens-with-new-duties.html
China’s yuan falls to lowest level of 2018, suffering longest losing streak in two years
The Fed Just Made Its Most Hawkish Turn in 30+ Years (Did Anyone Notice?)
I realize it’s getting late to discuss the June 12–13 FOMC meeting, but I think the Fed’s biggest news from that meeting may have slipped under the radar. To confirm the relevance of what I thought I heard during the post-meeting press conference, I spent some time last week reviewing old speeches, transcripts and other materials produced by Fed officials. I’m now convinced that Chairman Jerome Powelldelivered an important message that went largely unreported, and I expect him to keep at it until people take notice.
Powell’s message is that he intends to pop bubbles—both asset-price and credit bubbles. He didn’t communicate a precise threshold for bubble popping, but I believe he meant not just big bubbles but potentially little bubbles and possibly even pre-bubbles if that becomes necessary to contain the risks of financial instability. If we take him at his word, we should expect him to respond much more aggressively than his predecessors did to financial excesses, and those aggressive responses will occur even without an inflation threat. In other words, policy adjustments designed to maintain financial stability could disconnect from the FOMC’s inflation target. Read more @ http://ffwiley.com/blog/2018/06/25/the-fed-just-made-its-most-hawkish-turn-in-30-years-did-anyone-notice/
WHAT IS THE USD INDEX SAYING?
The USD starts its pullback as predicted and today it will continue to slide as the Trade War intensifies; China plays the Chess game and waits for the right moment to strike and EUROPE already preparing for retaliation – this is what the market is thinking and waiting for fresh news to make it price movement.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 1.00pm – BOJ releases its CORE CPI and is expected to be good. We buy JPY.
- 4.30pm – 5.30pm – GBP will go to action with MPC members speaking – expect volatility in favor for GBP.
- 9.00pm – S&P – It’s a leading indicator of the housing industry’s health because rising house prices attract investors and spur industry activity; VOLATILITY EXPECTED.
- 10.00pm – More volatility when US releases the CB Consumer confidence – Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. USD pullback is expected.
Market remains fragile as the TRADE WAR intensifies. Watch your money management.
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