EUR/USD, Yield Curves, Trump: levels, Ranges, Targets

Brian Twomey Brian's Investment

Michael Pento yesterday informed the Chinese yield Curve is now negative and this adds to negativty in the Japanese, CHF, EUR, UK, NZD, CAD and USD. The dark period lies ahead as many more nations must contain unanimity in negative yield curves because the world operates on the same interest rate numbers inside tiny channels and the result is nations follow each other closely so not one nation gains advantage.

All nations operate against 2% Inflation, 1% GDP, Stimulus, low wages and 50 pip daily movements in each other's exchange rates. So tightly bound are the nations, a disaster in one nation leads to a crash in all nations. And its done by agreement as opposed to the 1930's currency market when nation set out to destroy each other's exchange rates to gain export advantage as an economic rebuild from the depression.

Prior research suggests recession in 6 months by negative yield curves but as speculation and against all the nations in negative, is 6 months the threshold. Year 2018 is the next vital number in the 323 year history of central banks. The recession window is current to 2018. Not helpful is politics remains fluent for Trump.

Trump's current threat comes from Special Prosecutor Mueller and his wide agenda to investigate any topic pertaining to Trump and at any period in time. Why can't Mueller and his cadre of Democrat lawyers investigate the entire Republican party as he was granted the power. Attorney General Sessions recusal from Russia investigations leaves the number 2 and a Democrat at the Justice Department as the next person to fire Mueller. If number 2 refuses then comes a long line of Democrats at Justice who will also refuse. Trump must eliminate Sessions, force an unrecusal and / or hire an Attorny General to neutralize and or outright fire Mueller. Against Mueller, Trump lacks any choice. The Democrats are using the old playbook when they brought down Nixon. Look for Trump to win and frustrate Democrats yet again against Mueller as the conventional Democrat approach to Trump will never work.

EUR/USD.break above comes 1.1718, we're looking at sell points today at 1.1688. Two break points below are located at 1.1602 and far below at 1.1552. Look for a bounce at 1.1601 if seen today.

GBP/USD. Currently caught between break points at 1.3095 an 1.3051. Below 1.3051 comes next 1.3022.

AUD/USD. Break points above are located at 0.7959 and 0.7969.

NZD/USD. Break points are located at 0.7454 and 0.7478 vs below at 0.7427.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.