Fundamental Forecast for Dollar: Neutral USDollar has posted its best, two-week rally since May 2015, but the run has more speculative than fundamental drive CPI will offer good rate speculation fodder, but rate speculation bowing to Dollar’s dormant haven appeal See our 2Q forecasts for the US Dollar and market benchmarks on the DailyFX Trading Guides page The Greenback advanced against all of its major counterparts this past week, and the USDollar secured its strongest two-week rally since the May 2015 climb forestalled a bearish reversal. Such a strong upswell comes with a surprising lack of solid fundamental support. Genera...
This isn’t a great time for semiconductor stocks, what with the PC market being what it is and the bulk of semiconductor devices continuing to go into PCs. Yes, it’s true that the Semiconductor Industry serves as a driver, enabler and indicator of technological progress. Developments in the industry do determine the way we work, transport ourselves, communicate, entertain ourselves and respond to our environment. But the PC market slump can’t be ignored. So in searching for bright spots at the moment it would perhaps be better to look for other applications, such as in the cars we drive, the phones we communicate with, the electronic ga...
I was out at the Money Show in Las Vegas last week doing a couple of investment presentations to try to help investors navigate this very challenging market. Judging from the overflowing room for the presentation I did on biotech, interest in this space has not waned a bit, and a lot of folks are slowly adding new money to the sector. It confirmed I am not alone in my belief that sentiment will eventually return to a positive stance even as the sector continues to be locked in its deepest and longest bear market since the end of the financial crisis. I remain convinced the current entry points will look quite stellar one or two years out. So ...
In the current cold, barren, negative interest rate environment, foreign investors are getting hungry and desperate as they hunt for yield. In the hopes of kick-starting economic activity around the globe, central bankers are taking the drastic measure of establishing negative interest rate policies. This unusual endeavor is pressing international investors to chase yield, no matter how small, wherever they can find it. One of those areas in which foreigners are hunting for yield is the U.S. municipal bond market (see FT article). On the surface, this sounds ludicrous. Why would an outsider living in Germany or Japan invest in a U.S. municip...
Apple (Nasdaq:AAPL) has been an incredibly interesting stock to watch of late. The world’s largest technology company is in a bit of a pickle at the moment. Unfortunately, sales of its flagship product haven’t gone as expected, leading to massive declines on the stock. While we’ve seen a ton of downward movement lately, it seems as though we are going to see more, quite a bit more. Today, we’ll talk about why Apple is having such a hard time, what we’ve seen from the stock recently, what we can expect to see moving forward, and how binary options traders can take advantage of the trends. Why Apple Is Having Suc...
On May 18, 2015, the ECB’s Benoit Coeure held a closed-door speech under “Chatham House” rules in which he leaked to an audience of hedge funds in London that “the central bank would moderately front-load its purchases in its quantitative easing program because of the seasonal lack of market liquidity in the summer.” The reaction was an instant 50 pips drop in EURUSD as one or more funds decided to ignore the “rules”, and promptly traded on the material, market moving leak. The problem for the ECB is that it had just disclosed material, non-public, inside information to a group of market professiona...
The 2016 trading year has shown significant volatility during its first 4 months. Many questions arise such as how will the central banks and other main actors respond to these market developments? The 2016 trading year has shown significant volatility during its first 4 months. Many questions arise such as how will the central banks and other main actors respond to these market developments? ...
The focus in the Q1 earnings season lately has been on the Retail sector, particularly the department store space, with every notable industry player coming out with disappointing results. Macy’s (M – Analyst Report) started the parade of disappointing results, but was quickly followed by every type of department store, irrespective of their target market. Apparel is apparently the weakest category for these operators, with management teams appearing clueless as to what has happened to apparel demand. But that’s hardly the only issue facing these operators – they are dealing with a secular shift in consumer preferences, with c...
It’s not just that there was an obvious and intense change in sentiment, as that is quite common among and within markets. It is more so that this repetition is a little too familiar. In January, the mainstream was taken aback as the world looked headed for a very dark place, all “unexpected” of course. Just a few months later, it has been nothing but a huge sigh of relief as if anyone might know for sure the danger has passed. It has been nearly universal. In Canada, for example, as a proxy for both US and Chinese economies, this exhale into renewed optimism was a big one: “External developments have conspired against Canada’s eco...
Fundamental Forecast for Gold: Neutral DailyFX Technical Focus: Short Term S&P and Gold Analysis Gold Prices Rise, Crude Oil Weakens as Risk Appetite Evaporates Subscribe to SB Trade Desk For More Gold Updates/Analysis Throughout the Week Gold prices are lower for a second consecutive week with the previous metal off 1.26% to trade at 1272 ahead of the New York close on Friday. The losses come amid continued strength in the greenback with the Dow Jones FXCM U.S. Dollar Index (Ticker:USDOLLAR) already up 2.45% off the monthly / yearly low made on May 3rd. The rally is approaching technical resistance heading into next week, and could...