Fundamental Forecast for Euro: Neutral – Two-way action in EUR/JPY, EUR/USD very possible this week thanks to BOJ and FOMC. – ECB speakers dominate calendar (few meaningful data) with Draghi speaking on Thursday. – Volatility in FX markets is due to rebound over the coming weeks – it’s a good time to review risk management principles. A second tough week in a row…
The State of the Global Economy and Profitable Trading Opportunities In July 2016, imports to the US dropped to $225.8 billion, or 0.8%, compared to June 2016. The growth in imports in June was 1.9%. As the world’s second largest importing country, US demand for foreign goods has a sizeable impact on the export potential…
The prices of both metals were down again this week. We would guess that it has something to do with the fact that everyone knows: higher rates are coming to the dollar. The yield on the 10-year Treasury closed the previous week at 1.762% and this week at 1.701%. It may not look like much, but this is a…
Goldcorp (GG) has been an interesting stock to watch throughout the year 2016. In the beginning of the year, and throughout the first half, the stock has soared. However, more recently, Goldcorp has been met with resistance. Now, it looks like we’re going to see another volatility filled week, creating opportunities for binary options traders….
A new AIMA research paper discusses “the alignment of interests between hedge fund managers and investors” as it manifests itself in changes in the hedge fund business model. There have always been features in the relationship that were designed to produce such an alignment. As Michelle McGregor Smith observes, in her forward to the new…
Christiane Baumeister and Lutz Kilian presented an interesting paper at the Brookings Institution last week that takes a detailed look at the effects on the U.S. economy of the dramatic oil price decline of 2014-2015. An oil price decrease loosens consumers’ budget constraints, and historically this tends to show up as higher consumption spending. I had done…
It’s been a while since I last looked at junk-bond yields so I was flabbergasted at one point last week when I checked FRED, the research arm of the Federal Reserve. The yield on the “Bank of America Merrill Lynch US High Yield Effective Yield” was down to just a tad above 6%. I get that…
Disney (DIS) is one of the most iconic companies in the world and has rewarded shareholders with 11.7% annual dividend growth over the last 20 years. However, that hasn’t stopped the stock from slumping more than 20% since hitting an all-time high in late 2015. Today, Disney’s stock trades for about 15.3x forward earnings estimates. It’s…
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Gold: With the commodity continuing to hold on to its downside pressure, more weakness is envisaged in the new week. On the downside, support comes in at the 1,300.00 level where a break will turn attention to the 1,290.00 level. Further down, a cut through here will open the door for a move lower towards…
