After the shock Brexit referendum outcome, the British Prime Minister, David Cameron, resigned. He had held office from 2010 until the summer of 2016, initially in coalition with the LiberalDemocrats and since 2015, in his own right. One key piece of legislation passed during his tenure was the fixed term parliament act which was designed to ensure that an elected government held power for a full five year term; to prevent (say…) a junior coalition partner from blackmailing the government by threatening to force an early election; and to curtail the power of a sitting PM to cut and run when the polls look good. Guess what? Theresa May took ...
New York City is not only the world’s financial capital, it is also where the independent press was invented by one Peter Zenger. The busy port was the source of newspapers and other information coming from across the Atlantic on prices of stocks, bonds, and commodities. The founding fathers were active supporters of economic growth, notably Alexander Hamilton, who before starring in a musical was the author of the Report on Manufactures in 1790. New York founded the first American stock exchange under a buttonwood tree in 1792. But Wall Street only really got going in 1825 when the Erie Canal was opened, linking the NY Harbor with th...
EUR/USD enjoyed the dollar’s weakness to rise above the limited range that confined it recently. But can it extend to higher ground or is it set to slide? Here are two opinions: Here is their view, courtesy of eFXnews: EUR/USD: Unplugged But Recharging; Where To Target? – Danske Danske Bank FX Strategy Research believes that EUR/USD will stay within the 1.04-1.10 on a 3-month horizon. However, in the near-term, Danske sees EUR risks mainly on the downside as (i) the Fed is set to become somewhat less accommodative than the market is pricing at present, and (ii) ECB will have to scrap exit discussions and extend QE (delivering no ...
Japanese stocks headed south on Wednesday morning, led by banking shares as Japanese government bond yields fell 0 percent, a rate not hit since November, and continuing geopolitical tensions kept traders on edge. Despite the choppy trading in Japan on Wednesday, traders largely believe that the selloff is nearing its end and that strong earnings will reverse the trend in the near term.MSCI’s broadest index of Asia-Pacific shares outside Japan traded down 0.6 percent. Asian markets followed their European counterparts which suffered across the board on Tuesday after British Prime Minister Theresa May called for early elections to be held on...
NZDUSD found temporary support and has bounced higher on April 12. At this time, bias remains bullish and we expect the pair to continue higher in the coming trading sessions. Bulls will be waiting on any pullbacks to push the pair higher. NZD/USD 1 Hour Chart Bullish Patterns: The blue bullish pattern has already triggered a buy at the XA 0.886% Fib. retracement level and has pushed the pair higher. Another bullish pattern (Red) is also visible and has yet to trigger buys. Traders should wait for NZD/USD to terminate point C (red) then look for buying opportunities on the pullback lower of the point D (red). Expect for the red point D to te...
The dollar fell sharply against a basket of other currencies on Thursday after U.S. President Donald Trump said that the U.S. dollar had become too strong and that he preferred interest rates to be at a lower level. President Trump also directly commented about Janet Yellen, saying he had not ruled out another term as Federal Reserve (Fed) chairwoman. The markets took this as a signal that the Trump administration may be moving closer to a more conventional money policy stance, and would keep the current status quo at the Fed. Donald Trump broke with a long-standing tradition that the U.S. President would not comment on domestic fiscal policy...
GBP/USD 4 hour The UK Prime Minister Theresa May has announced her goal to organise new elections ahead of the Brexit negotiation process between Great Britain and the European Union. The snap general election call would take place on June 8, 2017 but needs approval by a majority of Member of Parliament in the House of Commons. The vote will be held today, Wednesday, April 19. The election news caused the GBP/USD to break several tough and long resistance zones. The bullish move broke the contracting triangle chart pattern formation from the daily chart. The wave 4 (green) pattern could still be valid because the wave 1 (from the daily chart)...
The Australian Dollar fell after a bond auction of 10-year notes saw yields declining even as demand cooled, hinting at dovish shift in investors’ RBA policy outlook. The average yield at the sale fell from 2.81 to 2.52 percent and the bid-to-cover ratio edged down from 3.55 to 3.24 compared with an offering of analogous paper in late March. The Yen also fell as Japan’s benchmark Nikkei 225 stock index rose, putting pressure on the perennially anti-risk currency. The US Dollar traded broadly higher as prices digested after suffering the largest daily loss in a month in yesterday’s session. That came as risk aversion swept finan...
China’s economy advanced in the first three months of this year, marking a second consecutive quarterly GDP expansion led by a pickup in investment, a rebound in the retail sales and government spending. Data from the National Bureau of Statistics (NBS) showed on Monday this week that the world’s second-largest economy advanced at an annualized pace of 6.9% in the first quarter of this year. The data beat economists’ forecasts of a 6.8% expansion. On a quarterly basis, China’s GDP was seen rising 1.3% compared to the previous quarter. The GDP growth rate was the fastest since December 2014, marking a 6-quarter high at 6.9% in Q1 of 20...
Once hedge fund darlings, almost no one is more perfectly aligned to get obliterated by falling used car prices than America’s auto rental companies, Hertz and Avis. As Bloomberg notes today, on a combined basis, Hertz and Avis dump about 400,000 vehicles per year into the used car market and operate fleets that are multiple times larger. And with used car prices plunging, bondholders are starting to get slightly anxious about the collateral impact of writing down billions of dollars worth of capital assets. Debt issued by Hertz Global Holdings Inc. and Avis Budget Group Inc., which had traded at or above par in recent years, tumb...