U.S. market gurus who predicted selloff say current calm an illusion
Banks and Big Boys do hype the market and retail traders don’t do their research gets caught;
Some veteran investors who were vindicated in calling for a pullback in shares and a spike in volatility could now be cheering. Actually, they’re looking at the risks that still lie ahead in the current relative calm. The last week’s wild market swings confirmed that the market was in correction territory – falling more than 10 percent from its high. The falls were triggered by higher bond yields and fears of inflation but came against a backdrop of a stretched market that had taken price/earnings levels to as high as 18.9. Adding to downwards pressure was the unwinding of bets that volatility would stay low. read more @ https://www.reuters.com/article/us-usa-stocks-predictions-analysis/u-s-market-gurus-who-predicted-selloff-say-current-calm-an-illusion-idUSKCN1FZ2FY
AUSTRALIA AN INTERESTING CURRENCY – STRONG PULLBACKS AFTER EVERY FALL; – RBA’s Lowe Says Inflation, Jobs Will Decide Next Rate Hike
The timing of Australia’s first interest-rate increase since 2010 will depend on progress in lowering unemployment and returning inflation to the midpoint of the central bank’s target, Governor Philip Lowe said. The RBA chief generally reiterated views he expressed earlier this month that rates are unlikely to rise until unemployment is closer to 5 percent and inflation nearer the middle of its 2 percent to 3 percent target. While business investment has improved and hiring strengthened, continuing labor market slack and firms intent on containing costs are keeping a lid on wages. Read More @ https://www.bloomberg.com//news/articles/2018-02-15/rba-s-lowe-says-timing-of-rate-rise-depends-on-unemployment-cpi
The world’s largest hedge fund is betting big against Europe – good for EURO
- Ray Dalio’s Bridgewater Associates has upped its bet against European stocks to $22 billion. The world’s largest hedge fund has short positions on some of the continent’s largest and most recognizable companies, including Adidas, Deutsche Bank and Daimler. Read More @ http://markets.businessinsider.com/news/stocks/ray-dalio-bridgewater-associates-betting-big-against-europe-2018-2-1015897997
What is the USD INDEX Technical Saying today?
NEWS THAT WILL AFFECT YOUR TECHNICAL TRADES
- 6.30am – RBA was hawkish this morning and it looks like RBA is ready for a rate hike next @If it wasn’t clear already, it appears that inflationary pressures in the United States are now finally starting to build. A sharp acceleration in wage growth in January, something that may or may not have been driven by inclement weather, was followed up by hotter-than-expected consumer and producer price inflation readings this week, sending benchmark 10-year US bond yields to fresh multi-year highs. However, despite the prospect of firmer economic growth and stronger inflation in the US, something that suggests the US Federal Reserve may have to lift interest rates faster than currently anticipated, the US dollar hasn’t rallied alongside yields. Quite the contrary, it’s taken a bath, currently teetering just above the previous multi-year low struck in January this year. Read More @ https://www.businessinsider.com.au/usd-dxy-us-dollar-budget-deficit-bond-yields-westpac-2018-2
- 3.00pm – German WPI which is expected to be good; we maintain BUY for EURO.
- 5.30pm – UK will release retail sales and is expected to be good – GBPUSD is still a BUY for us.
- 9.30pm – Canada Manufacturing sales is expected to be lower but we believe the numbers will be higher; we maintain SELL for USDCAD.
- 9.30pm – US critical data – Building permits which we believe will be lower – USD will go under pressure.
- 11.00pm – US will release UoM consumer and Inflation data – Critical Data which we believe that it will be weak. We maintain SELL for USD.
Be cautious and stay with good money management – never rush to make money but be always aware what is ahead. Stay away keep trades over the weekend. Do bear in mind next week is FOMC and there will be some great drama for the USD. For now WHY THE USD IS BEING BEATEN UP? READ @ https://www.businessinsider.com.au/usd-dxy-us-dollar-budget-deficit-bond-yields-westpac-2018-2
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