Risk Off! After Trump's addition of tariffs on Friday, China has gone on the offensive by asking state buyers to halt US agricultural imports. We are sure to receive a response from the US soon enough. We expect further downside to AudJpy this week. Sell on a pullback to Friday's low.
Risk Off! After Trump's addition of tariffs on Friday, China has gone on the offensive by asking state buyers to halt US agricultural imports. We are sure to receive a response from the US soon enough. We expect further downside to equities. Sell on a pullback to Friday's low.
The Dow fell more than 1% on the FOMC decision as further rate cuts are not guaranteed. Actually the way traders interpreted this is that the cut was an "insurance cut", with no more to come. Equity markets are feeling the force of gravity from the yield curve movements. We like the odds of further softness today, but would only play continuation breakouts when...
As expected, the FOMC cut 25bp albeit with 8-2 vote. A bit surprisingly, the Fed also decided to end its balance sheet reduction. Most importantly, the Fed repeated in the statement that it ‘will act as appropriate to sustain the expansion’, which we interpret as an easing bias suggesting more cuts may come. However, it is also clear that Powell will not...
NZD may be reversing. It's early days yet but the Bird fell after Bloomberg reported that the RBNZ is looking to refresh their unconventional policy strategy. “This year the Reserve Bank has begun scoping a project to refresh our unconventional monetary policy strategy and implementation. This is at a very early stage,” the RBNZ said in response to an Official...
Last week Crude plunged 7.61%, as global growth and demand concerns led to speculative longs to bail out. However, on Friday Crude closed 0.80% higher, as tnsions between the west and Iran supported the price. We are ata key juncture after Friday's higher low. Short-term long-setups can be considered with tight stops, looking for 57.20s initially.
Equities lost ground last week, as earnings reports from major US banks and other large US companies didn’t inspire a lot of confidence. This week sees some of the FAANG companies report – with Facebook, Amazon and Alphabet in the lineup of earnings reports. Bellwether Caterpillar also reports so the forward guidance from these companies will shape ...
Equities lost ground last week, as earnings reports from major US banks and other large US companies didn’t inspire a lot of confidence. This week sees some of the FAANG companies report – with Facebook, Amazon and Alphabet in the lineup of earnings reports. Bellwether Caterpillar also reports so the forward guidance from these companies will shape ...
Stocks are higher on a combination of factors: positive results from Microsoft; news that Mnuchin and Lighthizer spoke again with Chinese officials yesterday; FED's Williams hinting at a stronger easing bias. We like the odds of continuation today, looking for new all-time highs in the Dow.
On Thursday, UK retail sales beat, The Irish PM was confident the border issue could be resolved and EU negotiator Barnier expressed willingness to seek out alternatives to the Irish backstop. Meanwhile, the UK House of Commons voted to back an amendment designed to make it tougher for the next PM to suspend Parliament in an effort to force a no-deal...
Asian equity markets track declines in the US, earnings and trade concerns on the radar. Japanese equities underperform amid continued uncertainty related to Korea/Japan relations; Earnings-related concerns weigh on Canon Inc and AGC Netflix declines over 11% following earning/guidance We like continued downside today following this risk-off sentiment....
The New Zealand Dollar managed to find its way back to the topside last week, with the primary driver of flow coming from Wednesday's Fed Chair Powell testimony. In contrast to this, the RBNZ seems less dovish at the moment, with recent PMI data supportive. We like EURNZD shorts on pullbacks.
Stocks received a boost from the more positive headlines relating to Huawei (which was on the US Black list). This led to a big push in the equities markets, which is continuing still. The trend is up and pullbacks are favoured after the dovish FOMC.
GBP has been suffering from renewed No-Deal Brexit speculation. The Grieve amendment was rejected and the no-deal option is still on the table. PM Johnson emerged in a TV debate with his opponent, Hunt, shortly after the vote. A no-deal Brexit would be “vanishingly inexpensive” to the British economy, said Johnson, if mishandled. “The crucial thing is to...
U.S. oil futures hit their highest in over a month as a potential hurricane threatened crude output in the Gulf of Mexico and as an incident involving a British tanker in the Middle East highlighted ongoing tensions there. Along with a lower USD, we like the odds of further upside today.
The Loonie is the strongest currency out there at the moment and is ignoring the decline in Crude Oil. Firming inflation and a decent BoC business survey will encourage the BoC next week to reiterate an optimistic tone. On the flip side, BOE's Carney was quite dovish yesterday, and that's why we like further GBPCAD downside. Sell a tad at market even, but...
UK PMI came out worst since 2013! NZD remains a strong candidate so we like the odds of playing a pullback to short GBPNZD towards 8800.
Crude Oil received a boost after Russia & Saudi Arabia agreed to extend production cuts. We like the odds of further upside. Buy at market/close to the Short-Term support zone and look for 61.00 and then 62.00.