Forex – Dollar Turns Negative on Weak Housing Data
Investing.com - The dollar fell below breakeven against a basket of major currencies after data showed ongoing weakness in the housing sector but losses were capped by gains in U.S. treasury yields on speculation over the next Fed chair. The U.S. dollar … Continue reading at investing.com
Ex-HSBC forex trader accused of 'scam' in trial
Prosecutors have told the jurors who will determine the fate of a former HSBC banker charged with fraud in a $ 3.5bn currency deal to trust their ability to "know a scam when you see one", as they claimed the evidence blew his defence "out of the … Continue reading at ft.com
FOREX-Dollar rises as higher U.S. yields support
NEW YORK, Oct 18 (Reuters) – The dollar rose against a basket of currencies on Wednesday, on pace for a fifth-straight day of gains, taking support from higher U.S. Treasury yields. The dollar index, which tracks the greenback against six major currencies … Continue reading at cnbc.com
FOREX-Higher U.S. yields push dollar up for a 5th day
LONDON, Oct 18 (Reuters) – The dollar climbed for a fifth consecutive day on Wednesday as higher U.S. Treasury yields triggered a squeeze on investors who have been broadly bearish on the greenback in recent weeks. Some positive dollar news this week in … Continue reading at reuters.com
Forex technical analysis: EURUSD breaks to new session highs
The EURUSD is just breaking to new session highs. Stops have been triggered and the price has moved right up to the 200 and 100 hour MAs at 1.1792-96. Sellers have come right in against the levels – as you would expect and the price has rotated back too … Continue reading at forexlive.com
Have you ever considered supplementing your income through trading on Forex markets? It's a thought a lot of young traders have,…
Are you ready to trade real money in the forex market? Have you been studying beginning forex concepts, such as what is forex? P…
Currency trading techniques you can bank on! Forex trading can be remarkably lucrative-and complex, confusing, and risky. Too ma…
AUD/USD Forex Technical Analysis - Trader Reaction to .7848 Will Set the Tone Today
The AUD/USD finished slightly lower on Tuesday but the Forex pair was able to claw back from early session weakness. The market was pressured by dovish Reserve Bank of Australia minutes. The minutes showed the RBA was in no hurry to lift rates which was no … Continue reading at finance.yahoo.com
FBS launches People of Forex: a commercial-free blog for trading enthusiasts to share true stories
FBS welcomes traders from all over the world to the new "People of Forex" hangout to share and learn true trading stories and professional insights FBS, an internationally recognized broker with over 5 million clients in more than 120 countries … Continue reading at fxempire.com
Forex consolidation as equities remain positive
Forex markets are consolidating today after a recent rebound for the dollar, whilst equities remain positively set as Wall Street hits another milestone. Speculation over the identity of the next Fed chair is helping to turn the outlook for the dollar more … Continue reading at fxstreet.com
Forex problems limiting imports*
If you've paid a recent visit to your local supermarket, you may have noticed that popular yogurt brand Dannon has been missing from supermarket shelves. That's because local distributor, AS Bryden's Trinidad Ltd, no longer finds it feasible to … Continue reading at trinidadexpress.com
Cops hunt airport suspects after CT shooting, PTA forex hold-up
Two people were wounded at Cape Town International, while foreign currency was stolen at Wonderboom Airport in Pretoria. Two people were wounded during a shooting at the Cape Town International Airport on 18 October 2017. Picture: Supplied. CAPE TOWN – A … Continue reading at ewn.co.za
* Well, the markets sold off big for most of the day, but came back some to recover some of the losses. The US Unemployment numbers came out and our economy lost -131k. The Unemployment rate remained at 9.5%. The problem I have is that last month’s numbers came in at -125k, but were just revised down to -221, or almost double. Will they revised these numbers down significantly too.
The European data is coming out weak too and there markets were all down significantly today. Virtually the only safe haven was gold & silver, some commodities (especially wheat due to shortages & drought), and bonds.
In addition, the housing inventories are growing in most cities. This is the double dip in real estate I have been talking about. In fact, Barney Frank came out and said we need to forgive the homeowners mortgages to the extent that they are “underwater” or upside down. That means if they owe 300k, but their home value went down to 200k, Congress will mandate we forgive 100k. What about the bondholders who own the mortgages as an investment. They were innocent in the whole process.
Sounds like another bailout to me. And just in time for the November midterm elections. The only reason I focus on politics sometimes is that politics and the overall economic environment effects both stock and bond prices. In fact, the bond market is pricing in deflation.
It doesn’t matter how good a stock picker you are, in a strong down trending market, good stocks will go down with bad stocks. Conversely, in a strong up trending market, bad stocks will go up with good stocks. What is the old saying, “All boats float with the tide.”
Therefore, first you have to determine what type of environment you are in, growing or slowing, then formulate a strategy around the overall direction and trend. The wildcard is the government. That is why you have to pay attention to what they are doing. If they announce another big stimulus, it may rally the market, but without that, the news is growing increasingly negative by the week.
One good defensive play, and, contrary to popular opinion, does do well in deflationary times, is gold. Moreover, if they do announce another stimulus, it should rally with a vengeance. I have attached a graph of the spot gold price to show how the upward long term trend is still in place, and it is bouncing off a trend line.
I have made 3 or 4 entry points off the trend line as new money has transferred in, and have been very successful. Everyone is talking about oil. Oil is actually bouncing off resistance, there is plenty of supply, and the global economy is slowing. Thus demand is going down yet supplies are healthy. However, I would have a trade ready just in case there is conflict in the Middle East, namely Iran and Israel. Another bullish scenario is a bailout and more spending and printing by government. Remember, oil is traded around the world in dollars.
Therefore, I would hold off on oil, but be ready. I have attached a graph of the iPath Oil ETN (better tax rules than for an oil ETF) so you can see is rolling over just as it is hitting a resistance line.
Today is a better day than others. I am holding a lot of cash, have bonds, am short Europe, and have 10% Gold and 5% Silver. That is why I believe there is Order in the Universe today. Everything is making sense today.
Those are my thoughts for today and what I am looking at.
Dan Stewart CFA(R)
For the Full Story click the link below:
Click here for more information about 'Forex - Dollar Turns Negative on Weak Housing Data'.