Trump says ‘it is incredible’ that the Fed is considering hiking interest rates again
President Donald Trump took another shot at the Federal Reserveon Monday, saying he thinks “it is incredible” that “the Fed is even considering yet another interest rate hike. The Federal Open Market Committee is meeting this week to set interest rates. The U.S. central bank is widely expected to raise rates after the meeting, which would be its fourth hike this year. Read More @ https://www.cnbc.com/2018/12/17/trump-says-it-is-incredible-that-the-fed-is-considering-hiking-interest-rates-again.html
Ten years on, Fed’s long, strange, trip to zero redefined central banking
Whatever the acronym, when the U.S. Federal Reserve dropped its policy rate to near zero on Dec. 16, 2008, to counter a full-scale economic crisis, it ushered in what the central bank’s chairman at the time, Ben Bernanke, called “the end of the old regime.” A decade later, the full impact and import of that move are still not fully clear. But the Fed was never the same. The decision to move to zero ushered in wholesale changes to how the Fed works, from its building a massive balance sheet to adopting an explicit 2 percent inflation target and holding regular post-meeting press conferences. Read more @ https://www.reuters.com/article/us-usa-fed-zirp/ten-years-on-feds-long-strange-trip-to-zero-redefined-central-banking-idUSKBN1OF0HI
Oil falls, U.S. crude dips below $50 on oversupply fears
Oil prices fell more than 2 percent on Monday, with U.S. crude tumbling below $50 a barrel, on signs of oversupply in the United States and as investor concern over global economic growth and fuel demand grows. Read More@ https://www.reuters.com/article/us-global-oil/oil-falls-u-s-crude-dips-below-50-on-oversupply-fears-idUSKBN1OG01L?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
WHAT IS THE USD SAYING?
Fed Rate Hikes Are Extremely Rare When Stocks Are This Beat Up – MORE upside awaits for USD.
Donald Trump’s hectoring aside, it’s exceedingly rare the Federal Reserve raises interest rates when stocks are behaving this badly. In fact, were policy makers to follow through with their widely expected hike Wednesday, it would be the first time since 1994 they tightened in this brutal a market. Right now, the S&P 500 is down over the last three, six and 12 months, a backdrop that has accompanied just two of 76 rate increases since 1980. Read More @ https://www.bloomberg.com//news/articles/2018-12-17/fed-rates-hikes-are-extremely-rare-when-stocks-are-this-beat-up?srnd=markets-vp
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 8.30am – AUD will go to action with Policy Minutes – we continue SELL AUD.
- 2.45pm – Germany will release there Ifo business climate – It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment – We continue selling EURO.
- 9.30pm – Canada will release their Manufacturing Sales – expected to be weak – we continue selling CAD.
- 9.30pm – US will release their Building permits and Housing starts – both are FEDs leading indicator – we are expecting good data. We continue buying the USD.
Be cautious and never overtrade for now till the FOMC is all good – we are expecting the USD to continue its CHRISTMAS rally as the FED is widely expected to raise rates to normalise the market. Monday management is the key for all good traders.
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