China’s brinkmanship over dumping US Treasuries is bound to backfire. Beijing should resist any temptation to link its policy on purchasing US Treasuries to its trade differences with the US.
Treasuries, trade and tariffs are a combustible mix at the best of times, but with trade tensions between China and the United States already on the rise, even the suggestion that Beijing could pare, or even stop, its purchases of US government paper should be avoided. It’s simply not in Beijing’s interests to weaponise its holdings of US Treasuries. USD & YUAN will be an interesting pair to watch in teh year 2018 – Read More @ http://www.scmp.com/business/companies/article/2128409/chinas-brinkmanship-over-dumping-treasury-bound-backfire
Germany’s Social Democrats Show Divide on Alliance With Merkel.
Germany’s Social Democrats began taking sides on forming a government with Angela Merkel as the party leadership stepped up efforts to convince doubters of the need for a rerun of their grand coalition.
SPD leader Martin Schulz continued his tour of key Social Democratic Party regions on Tuesday to sell the preliminary deal reached last week with Merkel’s Christian Democrat-led bloc. The SPD will hold a party congress in Bonn this weekend, where 600 delegates from across Germany will vote on whether to pursue another coalition or return to opposition. – We continue buying EURO for 2018 @ https://www.bloombergquint.com/politics/2018/01/16/germany-s-social-democrats-show-divide-on-alliance-with-merkel
WEDNESDAYS NEWS – NEWS THAT WILL INTERFERE WITH TECHNICAL ANALYSIS.
- 7.30am – Australia will release the Consumer sentiment – we believe the data should be weak. We remain neutral for AUD.
- 7.50am – Japan will release the Core Machinery Orders – is an important data and we are expecting a positive numbers. We will continue buying the JPY.
- 6.00pm – Euro volatility will start with CPI data – we believe the CPI is going to be all good for EURO-ZONE; We maintain our position BUY for EUR.
- 11.00pm – Bank of Canada will release the rate – we believe Poloz will raise rate and WE CONTINUE BUYING CAD.
If you are a fundamentalist – please do pay attention to technical also. Fundamental will tell you where will the currencies go but Technical will tell you when to buy and sell.
USD REMAINS VULNERABLE.
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