CHANGE OF THE FED; EASING POLICY, PROTECTIONISM AND RISING OIL PRICE WILL HURT USD.
Donald Trump’s choice for the next head of the US central bank – the world’s most powerful economics job – has been approved by US senators. Jerome Powell, a multi-millionaire, was backed in a 84-13 vote as chair of the Federal Reserve with support from Republicans and many Democrats. Mr Powell, who was named as Mr Trump’s nominee in November, is a Republican who is seen to back low interest rates. Read More @ http://www.bbc.com/news/business-42798932
ECB, MARIO DRAGHI, MERKEL – FOCUS TOMORROW
There’s one question Mario Draghi won’t be able to ignore at the European Central Bank’s first policy meeting of the year: whether the euro is too strong for the currency bloc’s health. In the six weeks since the previous decision, the single currency for 19 European nations has surged to the highest level against the dollar in more than three years and at one point posted its biggest single-day gain since late 2014. That’s alarmed officials such as Vice President Vitor Constancio, concerned that the exchange rate will put undue downward pressure on already-weak inflation. Read More @ https://www.bloomberg.com//news/articles/2018-01-24/euro-demands-draghi-s-attention-at-first-ecb-meeting-of-2018
- ECB Minutes will decide where the EURO is going to go?
- Easy monetary policy must stop before EURO dive deeper to inflation.
- Stock Market and Property bubble are already focus and is not good just like what UK is facing now.
- Recent data suggest that easing must slowdown
We maintain BUY for EURUSD – till 1.26. (See Chart)
BOJ – WE ARE ALL GOOD!!
The dollar slipped to as low as 110.06 yen JPY= at one point, its lowest level since Sept. 15. It later pared some losses and was last down 0.1 percent at 110.16 yen. The greenback has shed nearly 2.3 percent against the yen so far this month, putting it on track for its biggest monthly drop since January last year. “On the BOJ, they have just reaffirmed pretty much what we already know and what the market already knows, that they’ll continue to maintain an aggressive, powerful easing stance,” said Peter Dragicevich, G10 FX strategist for Nomura in Singapore. Read More @ https://www.reuters.com/article/us-global-forex/dollar-hits-four-month-low-vs-yen-remains-on-defensive-idUSKBN1FC02M
CANADA LOOKS ELSEWHERE IN CASE NAFTA FAILS; TPP YES!! YES!!
Canada and 10 other countries, including Japan, have reached a deal on a new Pacific Rim trade accord that does not include the United States. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Trade Minister François-Philippe Champagne announced on Tuesday, will benefit Canada’s agricultural sector, chiefly beef and pork producers, which are being granted market access to the once-sheltered Japanese market – access that rivals in Australia already enjoy. Read More @ https://www.theglobeandmail.com/report-on-business/economy/japan-says-trans-pacific-trade-pact-without-us-to-be-signed-in-march/article37699021/
NAFTA – CONTINUES
Officials opened a key round of negotiations to modernize NAFTA on Tuesday amidst optimistic signs, as U.S. President Donald Trump said the talks were going “pretty well” and Canada’s chief negotiator said he had high hopes for progress. Read More @ https://www.reuters.com/article/us-trade-nafta/nafta-negotiators-open-key-round-of-talks-amid-upbeat-signs-idUSKBN1FC242
We maintain BUY for CAD and SELL USD. (SEE CHART)
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