Why the Fed might be a little more worried than it lets on about inflation
FOMC to stay cautious in 2018, but signs of anxiety are evident; The Federal Reserve stuck to a cautious strategy on raising interest rates in 2018, but some officials left scattered hints that they might be a bit more worried about rising inflation than the central bank let on. The Fed on Wednesday raised its benchmark fed funds rate as expected and signaled it’s still on track to raise rates a total of three times in 2018. Many Wall Street pros thought the Fed might pencil in four rate hikes this year because of higher inflation and an ultra-tight labor market. Read More @ https://www.marketwatch.com/story/why-the-fed-might-be-a-little-more-worried-than-it-lets-on-about-inflation-2018-03-21?siteid=rss&rss=1
Janet Yellen: What the Fed Has Learned Since the Financial Crisis
Former Fed Chair Janet Yellen has been getting kudos from many corners of Wall Street for her deft handling of the central bank’s path to normalization after the harrowing period during the financial crisis when the august body took extraordinary measures to rescue the U.S. economy and prevent a domino-style collapse of the banking system. But in an interview this week at a Wharton lecture series, her first public appearance outside Washington since stepping down last month, Yellen reflected on some of the missteps by the Fed as well as financial regulators around the globe for not foreseeing or preventing the 2008 crisis from unfolding. Some critics blamed former Fed Chair Alan Greenspan’s low interest rate policies for fueling the subprime housing collapse that led to the crisis. – WILL THIS HAPPEN AGAIN? http://knowledge.wharton.upenn.edu/article/janet-yellen-fed-learned-since-financial-crisis/
China Unveils How It Will Retaliate To US Tariffs, USDJPY Snaps
While it will hardly come as a surprise considering that trade wars always evolve in an escalating tit-for-tat manner, the WSJ reports that just hours ahead of Trump’s announcement of as much as $60 billion in tariffs targeting Beijing, China is preparing to hit back with its own countertariff aimed at President Donald Trump’s support base, including levies targeting U.S. agricultural exports from farmbelt states in retaliation to the mounting trade offensive from Washington. Read More @ https://www.zerohedge.com/news/2018-03-21/china-unveils-how-it-will-retaliate-us-tariffs-usdjpy-snaps
Official Cash Rate unchanged at 1.75 percent
The outlook for global growth continues to gradually improve. While global inflation remains subdued, there are some signs of emerging pressures. Commodity prices have continued to increase and agricultural prices are picking up. Equity markets have been strong, although volatility has increased. Monetary policy remains easy in the advanced economies but is gradually becoming less stimulatory. GDP was weaker than expected in the fourth quarter, mainly due to weather effects on agricultural production. Growth is expected to strengthen, supported by accommodative monetary policy, a high terms of trade, government spending and population growth. Labour market conditions are projected to tighten further.
THE GAMES OF CHESS!! POWELL MOVE HAS CAUTIOUS AND HE IS FOR WEAKER USD FOR “GREATER AMERICA= AGAIN”
TODAYS’ NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 8.30am – Australia data – unemployment data has gone up surprisingly – and employment weaker then the previous month – after FOMC yesterday – any pullback on AUDUSD we buy.
- 4.00pm – 5.00pm – France, Germany and EUR will release their PMI data which is expected to be good. We maintain BUY for USD.
- 5.00pm – EURO current account – which is expected to be good – we maintain BUY for Euro.
- 5.00pm – Keep your eyes on ECB economic Bulletin – which is expected to bring volatility for EURO – we favor the EURO.
- 5.30pm – UK will release the retails sales – we don’t see any impact as the market awaits for the rate from BOE.
- 8.00pm – UK turn to announce the rate and votes – we are expecting a bullish votes and a hawkish policy Summary. We maintain BUY for GBP but cautiously as the BREXIT has once again back to the limelight “Uncertainty”
- 9.45pm – Manufacturing PMI from the US – expected to be good – we don’t see any volatility. We be cautious on the USD. – Unless it breaks the $90 at the INDEX.
The market is confused but focusing on SELLING the USD. Always maintain your money management.
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