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  • Finance 0

    Dollar Consolidates Weekly Gain, While Equities Ease To Start New Month

    The release of the manufacturing PMIs confirms that the synchronized global expansion remains intact. The focus today is on three unresolved political challenges: US tax reform, the UK-Irish border and the talks that may produce another grand coalition in Germany. The US dollar is mixed, with the dollar-bloc currencies and Scandis pushing higher. The euro and yen are hugging yesterday’s close, while sterling is paring this week’s gains. In fact, sterling remains the only major currency that gained against the greenback this week. It is holding on to a little more than a 1% gain this week. It is the fourth consecutive advancing w...
    On December 1, 2017 / By
  • Finance 0

    Global Stocks, US Futures Slide As Tax Bill Chaos Erupts In The Senate

    Markets were thrown for a loop in the past 24 hours, with the Dow first soaring nearly 400 points on Thursday on expectations that tax reform was a done deal, when drama emerged just after the close when the Senate tax bill came this close to falling apart when the proposed “Trigger” was ruled as invalid, pushing a Thursday tax vote to this morning, and as of this moment the bill appears in limbo with the GOP scrambling to find ways to appease the sudden loud opposition among budget hawks. UBS economist Paul Donovan summarized it best this morning: Tax cut plans were thrown into confusion by the realisation that the US Treasury ...
    On December 1, 2017 / By
  • Finance 0

    Major Asset Classes; Performance Review For November 2017

    US stocks resumed the lead in November as the top performer for the major asset classes. The Russell 3000 Index gained 3.0% last month, the strongest advance since February and the 13th consecutive month of positive total returns for the benchmark. Most asset classes posted gains in November, with only a handful of exceptions. The red ink was mild and limited to US investment-grade and junk bonds and broadly defined commodities, last month’s worst performer. The Bloomberg Commodity Index ticked down 0.5% after rising 2.1% in October. Meantime, the tailwind continued to blow for the Global Market Index (GMI), an unmanaged benchmark that hold...
    On December 1, 2017 / By
  • Finance 0

    USD/JPY Bullish Consolidation At 38.2 Fib

    The USD/JPY made a diving board pattern straight from 111.70 zone and it is consolidating now at 38.2 of the previous swing low. The price is supported by 38.2, D L3, W H4 and double bottom within 112.30-40 zone. This accounts for the POC zone. If the price bounces from the zone, targets could be 112.77 and 113.14. Have in mind that Friday is generally a profit taking day, so we might see some volatility. It doesn’t hurt to protect profits by applying profit stop when volatility is higher than usual and on Fridays. W L3 – Weekly Camarilla Pivot (Weekly Interim Support) W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance...
    On December 1, 2017 / By
  • Finance 0

    Myths About Tax Cuts And Truth About Growth

    An economist’s perspective on the flawed logic behind the proposed 2017 tax bill, and what policy makers could do to encourage U.S. economic growth. It started as a tax cut. Now it could change American life. No responsible fiscal conservative could support a plan that will add to debt in order to help corporations buy back more of their own shares and flow more cash to shareholders, while deficits gap, pensions bust, critical infrastructure rots and the social fabric frays further. Madness....
    On December 1, 2017 / By
  • Finance 0

    Sensex, Nifty Trade Marginally Lower; Biocon Rises 2%

    Indian share markets continue to trade just below the dotted line amid weak global markets. Gains were largely seen in consumer durables stocks and FMCG stocks. Metal stocks and energy stocks witnessed majority of the selling pressure. The BSE Sensex is trading lower by 45 points and the NSE Nifty is trading lower by 18 points. Meanwhile, the BSE Mid Cap index is trading up by 0.3% & the BSE Small Cap index is up by 0.4%. The rupee is trading at 64.43 to the US$. Biocon share price surged over 2% after the European Medicines Agency (EMA) accepted for review Mylan’s Marketing Authorisation Applications (MAA) for prop...
    On December 1, 2017 / By
  • Finance 0

    EUR/USD And GBP/USD Forecast – Friday, Dec. 1

    EUR/USD The EUR/USD pair initially fell during the trading session on Thursday but found enough buying pressure near the 1.18 level to turn around and rally. By doing so, looks likely that we are going to continue to go higher, perhaps reaching towards the 1.21 level over the longer term. Expect volatility though, as we are trying to break above a massive amount of resistance. Regardless, I think is, even more, support, all the way down to the 1.17 level underneath. In fact, I like buying this market on dips, and because it gives you an opportunity to take advantage of value. Longer-term, if we can break above the 1.21 level, it’s likely th...
    On December 1, 2017 / By
  • Finance 0

    Stocks Rally Anticipating Historic Tax Cut

    Republicans have been salivating over corporate tax cuts and repatriation of the estimated $2.6 Trillion in cash on US company balance sheets overseas that can’t be brought home due to double taxation. Why would Apple repatriate any of its $252 Billion after-tax cash hoards, only to have $88 Billion confiscated by US taxes? Instead, US companies borrow here against their overseas cash elevating our cost of capital.  Until recently the stock market has not been pricing in any Trump legislative success in 2017. However, post-November earnings season, stocks are surging primarily in the hope of GOP unity providing a Christmas tax pa...
    On December 1, 2017 / By
  • Finance 0

    USD Testing Critical S&R Levels Versus EUR, GBP And JPY

    EUR/USD 4 hour The EUR/USD could be in a wave B (purple) bearish retracement but the bullish price action looks strong. A push higher could occur based on yesterday’s bullish bounce but a break above the 100% Fibonacci level invalidates the wave B zigzag pattern. 1 hour The EUR/USD break below support (blue) could see price fall towards the Fibonacci levels of wave 2 (pink). A break above the 100% Fib could indicate an extension of wave 1 (pink), although new resistance levels are nearby (red lines). USD/JPY 4 hour The USD/JPY bullish channel could indicate the completion of wave 2 or wave B (purple) at the 50% Fibonacci level. The key ...
    On December 1, 2017 / By
  • Finance 0

    AUDUSD Daily Analysis – Friday, Dec. 1

    AUDUSD extended its downside movement from 0.7644 to as low as 0.7550. Deeper decline to test 0.7532 support is still possible. A breakdown below this level will indicate that the downtrend from 0.7897 has resumed, then next target would be at 0.7450 area. Near-term resistance is at the top of the price channel on the 4-hour chart, and the key resistance is at 0.7644, only break above this level could signal completion of the downtrend....
    On December 1, 2017 / By