War is Declared! – China just dropped the warning Yuan! In the middle of the night, on Dec 6, 2016, silently, China Declared War on the United States by dropping their currency, the Yuan, by 8.8 percent. Most people missed it because it only lasted for a millisecond, but that was enough. They had done…
Image via European Central Bank The European Central Bank’s meeting this Thursday is unlikely to prove to be a market mover as expectations are high that the central bank will be expanding its QE purchases. The ECB’s governing council meets on Thursday, December 8 where the central bank is expected to announce its decision on…
“…any business that leaves our country for another country fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its products back into the U.S. without retribution or consequences, is WRONG! There will be a tax on our soon to be strong border of 35% for these…
Since August the XAU has displayed the following behavior. A sharp drop followed by a 14-day to 16-day correction that retraces between 50% and 61.8% of the previous decline. Today, prices hit the 50% retracement level and made a bearish reversal candle on the 15th day off the 75.54 low. Prices breaking below the green trendline…
In what may be the most direct admission that China’s economy is about to grind to a deflationary halt, today China’s Global Times, a newspaper which is seen as a propaganda companion to the official People’s Daily, revealed data showing this year’s proposed salary guidelines according to which there is a broad wage growth declines…
The European Central Bank convenes tomorrow. After this preview from Morgan Stanley, we have one here from Goldman Sachs: Here is their view, courtesy of eFXnews: For markets, this week’s ECB holds two questions. First, will there be a formal taper decision. Second, if there is no formal announcement to this effect (our base case is for a continuation…
Crude oil is very volatile in recent weeks. Weekly movements of more than 10 pct are the norm nowadays. It is very easy to get excited as prices are moving 5 pct higher. But is now the time to buy crude oil or energy stocks? First, let’s look at the crude oil price. Crude’s weekly chart gives…
The beginning of the month warrants a review of the seasonal patterns that have influenced forex markets over the past several years. For November, as we have done for all months in 2016, we have expanded our focus on the period of 1996 to 2015 in recognition of the evolving relationship between economic data, central banks,…
EUR/USD 4 hour The EUR/USD bullish bounce at the support zone (green lines) could see a continuation higher once price completes a wave B (purple) at one of the Fibonacci levels. The bullish zigzag should price towards the Fib levels of wave 2 (green) without breaking above the 100% level (invalidation). 1 hour The EUR/USD…
News flash: Investors who assumed their investments in conservative bonds and bond funds (LSBRX) were safe from losses are learning otherwise. Since mid-2016, the performance for U.S. bonds (BND) with top credit grades have sunk almost 4%. For perspective, the 12-month yield on ETFs tracking the Barclays U.S. Aggregate Bond Index is just 2.40%. Put another…
