The Democrat Party controlled media says ACA failure means Trump's presidency is finished. The public believes it. Stimulus was mantra for central banks to control bond markets and the public believed it. ACA legislation moves the markets and the public believes it. And Joe Stalin's Re -Education camps were about books. Have we lost our sense to analytical skills or does the news media contain overwhelming power to control the mind. Trump's election was about the last and best hope to recover from a severe economic deterioration caused as usual by the 187 year old Democrat Party. Why Trump is because historically markets and economics outperform under Republicans.
Will Trump get the job done under intense opposition from not only Democrats and the news media but from the current majority of the Teddy Roosevelt wing of the Republican Party is unknowm. Calvin Coolidge in the 1920's was successful and its the Trump model in the modern day. Trump is smart and ahead of the curve and its suspected ACA failure is Trump's attempt to oust Paul Ryan as Speaker and install a Freedom Caucus member to move Trump's agenda forward.
What governs the Commodity markets in WTI, S&P's and a vast majority of major commodities is the 10 and 2 year spread. Until both travels higher, look out below commodities. Current spread is on the edge.
The lowest spread for 2017 was 1.19 while the highest currently runs 1.22. If the spread was viewed as Real Yields then from 0.6 monthly Inflation, spreads run from highest to lowest at 0.59 to 0.62. Question is what is 1.22. Viewed from all 2016 and daily yields, the lowest spread was 0.81 to highest at 1.31. For 2015, 12 basis point spreads ran from 1.29 lows to 1.41 highs. From 2015 to current, topside spreads dropped 10 basis points. Real GDP in the interim period based on annual averages ranged from recent 1.6 to 2015 highs at 2.8. GDP is running above the spreads yet DXY from current spreads sees its best level at 100.25 against the next range break at 101.08 and 101.58.
EUR/USD current range is located from 1.0904 to 1.0630. The toughest road for EUR/USD is the downside as breaks must see 1.0722, 1.0665, 1.0630 and 1.0605. Then comes the solid base at 1.0530's. Yet above for EUR/USD at 1.0904 is the 253 day average at 1.0862 and a daily dropping line. A break higher then next comes 1.1005, 1.1043, and further 1.1143. The bottom side then rises to must break for shorts at 1.0730 and 1.0670. EUR/USD shorts must see a break at 1.0722 or it faces a slow slow grind higher.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
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EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.