Loading...

Follow CountingPips Forex News & Currency Trading Blog on Feedspot

Continue with Google
Continue with Facebook
or

Valid
By Jameel Ahmad, Global Head of Currency Strategy and Market Research at ForexTime

As expected, the Federal Reserve did not cut US interest rates this month. However, the market reaction and accompanying USD movements in FX markets following the decision suggests that the stage is now set for interest rate cuts in the United States over the coming months.

Investors are jumping on the opportunity to sell the USD as the gates slowly open that the Federal Reserve will move closer towards lowering interest rates. Therefore the Dollar is sliding lower on the news and there is still an opportunity to jump on this trade.

Look for momentum in the USD to drift further lower over the coming hours and I would expect for emerging market currencies in Asia and the EMEA to attempt a jump on this wave during Thursday trade.

Each one of the G10 currencies has moved higher against the USD at time of writing with the biggest gainer standing as the British Pound at 0.7%.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By CentralBankNews.info
Mozambique’s central bank lowered its benchmark monetary policy rate, MIMO, by 100 basis points to 13.25 percent, saying inflation has slowed four months in a row and is expected to remain low and stable in the medium term.
It is Bank of Mozambique’s (BM) first rate cut this year but the rate has now been lowered by 10 percentage points since April 2017 as inflation has steadily decelerated since topping 26 percent in November 2016 and the exchange rate of the metical has risen since hitting almost 80 to the U.S. dollar in October 2016.
BM also lowered its deposit rate by 100 basis points and the rate on its permanent lending facility to 10.25 percent and 16.25 percent,  respectively. However, it left the reserve ratio of domestic currency deposits at 14.0 percent and foreign currency deposits at 36.0 percent.
BM said the rate cut reflected the improved outlook for inflation and the prospect of lower pressure on the exchange rate along with demand that remains below potential.
The metical was trading at 62.0 to the dollar today, up 4.5 percent from a low of 64.8 in late April but down 0.6 percent since the start of the year.
Mozambique was hit hard by Tropical Cyclones Idai and Kenneth in March and April, with the International Monetary Fund earlier this month forecasting economic growth would slow to 1.8 percent from 3.3 percent last year from the damage to infrastructure and productive capacity.
In April IMF approved $118 million in emergency assistance to Mozambique, with the death toll estimated of at least 1,000 from the two cyclones.
Mozambique’s inflation rate eased to 2.42 percent in May from 3.27 percent in April but the IMF sees it rising to 8.5 percent by the end of the year.

www.CentralBankNews.info

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By CentralBankNews.info

The Federal Reserve, the U.S. central bank, left its benchmark target for the federal funds rate steady at 2.25 to 2.50 percent but acknowledged growing uncertainty about the economic outlook and forecast it a rate cut next year, a sharp change from March when it forecast a rate hike.
Echoing Chairman Jerome Powell’s statement from June 4, the Fed said it would “act as appropriate to sustain the expansion” in light of the rising uncertainty and muted inflation pressures, a another sharp change from March when the Fed said it would be “patient” while observing global economic and financial developments.
Today’s statement by the Fed’s policy-making body, the Federal Open Market Committee (FOMC), continues the steady shift away from its tightening monetary policy stance since January this year following 9 rate hikes since December 2015.
Unlike its decisions in January and March, the FOMC was split today, with James Bullard, president of the St. Louis Fed, voting for a 25 basis point cut. The other 9 committee members voted to maintain the rate.
In an update to its economic forecast, the FOMC projected the funds rate would average 2.4 percent this year, unchanged from its March forecast, but then drop to 2.1 percent in 2020 as compared with an increase to 2.6 percent that was projected in March, implying one cut of 25 basis points.
In 2021 the rate was seen rising back up to 2.4 percent, but still down from 2.6 percent previously forecast.
Illustrating the downward path in rates, the longer-run funds rate was forecast at 2.5 percent, down from 2.8 percent, as economic growth was seen decelerating to 2.0 percent in 2020 from 2.1 percent in 2019 and then 1.8 percent in 2021.
As in March, the Fed said the U.S. labor market remains strong, but added economic activity was “rising at a moderate rate,” down from its March view that activity was rising “at a solid rate,” as business fixed investment has been “soft” despite household spending picking up from earlier in the year.
The jobless rate was forecast to slowly rise to 3.8 percent in 2021 from 3.7 percent in 2020 and 3.6 percent in 2019 while inflation, as expressed in personal consumption expenditure, is seen slowly rising to 2.0 in 2021 from 1.9 percent in 2020 and 1.5 percent this year.

      The Board of Governors of the Federal Reserve System released the following statement:

“Information received since the Federal Open Market Committee met in May indicates that the labor market remains strong and that economic activity is rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although growth of household spending appears to have picked up from earlier in the year, indicators of business fixed investment have been soft. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation have declined; survey-based measures of longer-term inflation expectations are little changed.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased. In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric S. Rosengren. Voting against the action was James Bullard, who preferred at this meeting to lower the target range for the federal funds rate by 25 basis points.”
Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By CentralBankNews.info

Moldova’s central bank raised its base rate 50 basis points to 7.0 percent to curb rising inflationary pressures from higher wages and credit along with fiscal spending in 2019 and 2020.
It is the first change in rates by the National Bank of Moldova (BNM) since the central bank wrapped up an easing cycle in December 2017 after cuts totaling 13 percentage points from February 2016, and the first rate hike since August 2015.
In addition to raising the base rate, BNM raised the rate on overnight credit by 50 basis points to 10.0 percent and the overnight deposit rate by the same amount to 4.0 percent.
The required reserve ratio on leu deposits and non-convertible currencies was maintained at 42.5 percent while the ratio on freely convertible currencies was raised 300 basis points to 17.0 to “discourage financial intermediation in foreign currency.”
The central bank said the rate increases were a first step toward mitigating inflationary expectations and pressures, and to stimulate savings, to keep inflation within the target range of 5.0 percent, plus/minus 1.5 percentage points, as data point to a significant increase in aggregate demand as outlined in the May inflation report.
Moldova’s inflation rate rose for the fifth consecutive month to 4.6 percent in May from 3.2 percent in April.
In its May statement, BNM new loans by banks had risen 32.4 percent in the first quarter of this year from the same period last year as the weighted average interest rate on loans had decreased 1.25 percentage points in the same period.
Moldova’s leu has depreciated 5.5 percent against the U.S. dollar this year and was trading at 18.20 to the dollar today.

www.CentralBankNews.info

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By Orbex

Coming up tonight we have the official release of the Q1 GDP statistics from New Zealand. Despite the government’s attempt to move the country’s metric of economic health away from cold math towards their new concept of “wellness”, the figure is still one of the most important for the markets.

The government has promised increased spending on their part. However, projections for economic growth for the first quarter are somewhat downbeat.

There is a wide range of factors that lead to this outlook, many of which are related to the exchange rate. But, this is also relatively old data, coming almost at the end of the second quarter.

Therefore, even though its a key point for understanding the outlook and projecting monetary policy in the future, the market reaction could be somewhat muted.

What we are looking for

The GDP data is the only major point to come out of New Zealand for the whole day, and will leave the currency to its own devices until next Tuesday. That doesn’t mean that we can expect trading to be purely technical, since there are a lot of external data events that routinely affect the kiwi. These include potential information from Governor Lowe of Australia, as well as BOJ and BOE rate decisions.

Expectations are for New Zealand’s Q1 GDP to have expanded 0.4% on a quarterly basis, picking up the pace from the 0.2% prior. This would be in line with the RBNZ’s projections, but would still be below the average of the last several years. We should remember that last time, although the data was within expectations, it was the worst quarterly performance since mid-2015.

The longer term is more important

On an annualized basis, we can expect the GDP to have moderated its growth pace, coming in at 2.2%compared to 2.3% in the prior measure. This would be the worst performance since 2014. Now, it’s not unusual for prior figures to be revised, and that could keep the number from falling below 2,3%, the current low of the cycle.

A poor showing for the Kiwi economy in the first quarter wouldn’t put the country out of sync from other major economies that also have a similar showing. In fact, it would be right in line with their largest trading partner: Australia.

Australia has gone the exact opposite in terms of its budget, cutting spending and taxes, while New Zealand has increased the government’s role in the economy. However, those policies weren’t implemented until the first quarter was over.

The reasons to be bullish

There is cause for concern, in fact, if Q1 GDP in New Zealand doesn’t turn out to have a good showing. This is because it was a good time for the economy.

Not only were there record tourist arrivals, and dairy prices were high, there was also quite a bit of optimism about resolving the trade dispute between China and the US. This helped support capital flows into commodity currencies. New Zealand also managed to avoid the major housing disruptions that plagued its larger neighbor.

Analysts have pointed to expectations among major firms to not increase their capital spending as the year goes on. Dairy prices have finally turned the corner and have been on the backfoot since May. All these factors combine to suggest the first quarter might have been the best for New Zealand.

By Orbex

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

The Energy Report

Source: Peter Epstein for Streetwise Reports   06/18/2019

A uranium exploration company with a project in Argentina is profiled in this guest post from The Northern Miner.

The following is a guest post from The Northern Miner, one of the best known mining newspapers in North America. The feature company is Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTC). This article by Trish Saywell nicely articulates why the company could be a big winner if long-term uranium prices, currently around US$32/lb, climb to US$40/lb or more in the next two to three years. That’s not a big move in the grand scheme of things.

At US$40/lb, Blue Sky’s main project has an after-tax IRR of 20%. But, if uranium prices spike higher, as they frequently have in the past, we could certainly see US$50, US$60, US$70, US$80lb. And, if Blue Sky could double or triple the size of its uranium and vanadium deposit, it could be sitting on a truly world-class project. Please see disclosures at the bottom of the page. – Peter Epstein

Blue Sky Uranium Advances Amarillo in Argentina

Argentina has three nuclear reactors and plans for more, yet the country has no domestic uranium production. Blue Sky Uranium (TSXV: BSK; US-OTC: BKUCF) hopes to fill that void.

“They import uranium from Kazakhstan and Canada, so having a domestic source would be a preference, and they’re potentially our first customer,” Nikolaos Cacos, the company’s president and CEO, tells The Northern Miner.

The country exports small nuclear reactors, too, which are built by INVAP, a manufacturer in the province of Rio Negro, home of Blue Sky Uranium’s Amarillo Grande project.

“The province is a majority owner of INVAP — it’s like a crown corporation — and we’ve collaborated with this organization doing some metallurgical studies, so they’re very supportive of what we’re doing,” says Cacos. “They even have a pilot nuclear enrichment plant in Rio Negro … If we had to pick a province to do uranium mining in, there couldn’t be a better one.”

In February, the company completed a preliminary economic assessment (PEA) of its main Ivana deposit at Amarillo Grande. The study outlines an open-pit operation that would produce uranium and vanadium over a mine life of 13 years.

Initial capex is estimated at US$128 million, including a US$28 million contingency, and would be paid back, after-tax, in just under two and a half years. Life of mine sustaining capital costs are forecast at US$35 million.

“The overall capex is very low for any type of mining project, and for a uranium project, too, especially compared with projects in Canada,” Cacos says, adding that sustaining capex is also quite low, as “it’s almost like a gravel operation.”

The majority of the near-surface mineralization found so far is in the form of the leach-amenable mineral carnotite as coatings on pebbles, and beneficiation test work on samples indicates that simple wet scrubbing and screening techniques could be used onsite to concentrate and upgrade the material, which could reduce transport and processing costs.

“The large pebbles are completely un-mineralized so you scoop up a tonne of dirt, you do a wet scrubbing and remove the large pebbles and rock, and you’ve increased the grade by a factor of four and removed 75% of the mass, and the rest is done with a simple alkaline leaching process where you extract the uranium and vanadium out,” he says. “This process is used worldwide and is well-proven.”

A drill rig at Blue Sky Uranium’s Amarillo Grande project in Argentina. Credit: Blue Sky Uranium.

Blue Sky has also hired Chuck Edwards, a technical advisor who specializes in uranium processing for both alkaline and acid leach plants. Edwards was involved in the engineering design of all the current uranium facilities in Saskatchewan’s Athabasca Basin, and has worked on uranium projects in five continents, including as principal metallurgist at Cameco (TSX: CCO).

“He recently retired from Cameco and then starting working on this project,” Cacos says. “The more work he did, the more he liked the project.”

Other estimates in the PEA put total cash costs net of credits over the life of mine at US$16.24 per lb. U3O8 with all-in sustaining costs net of credits of US$18.27 per lb. U3O8.

At a uranium price of US$50 per lb. and a vanadium price of US$15 per lb., the project would yield an after-tax net present value at an 8% discount rate of US$135 million and an after-tax internal rate of return of 29.3%, the study concludes.

“This is a low-cost deposit. It’s surficial, and has very positive economic indicators that can make it viable, even in the uranium environment we’re in right now,” Cacos says, noting that the deposit, an in-house discovery, occurs within a depth of 20 to 25 metres.

“There is no drill hole that goes deeper than 50 metres, so drilling has been very low cost,” he says.

This year, Blue Sky will explore three high priority target areas with significant anomalies of uranium and vanadium, and the work program over the next six months includes up to 4,500 metres of reverse circulation drilling, auger drilling and down-hole radiometric measurements, as well as a six-kilometre induced polarization (IP) geophysical survey.

The program is designed to identify and delineate mineralization between the main Ivana deposit and the Ivana West target, about 1 km away, and also test targets in two other key areas to the north — Ivana Central and Ivana North — all of which are within 25 km of the main deposit.

Cacos is particularly interested in the prospects at Ivana Central, where its former partner, Areva, drilled holes in 2010 and 2011, but never assayed them.

“They very abruptly ended the partnership because I guess they had some restructuring issues to deal with — nothing to do with our project — and so we assayed them,” he says. “The edges of our Ivana main deposit have certain characteristics, and those drill holes on either side, that are about six kilometres apart, seem to mimic those edges. Areva may have just stepped over an underlying deposit.” Five to ten kilometres further north of Ivana Central, at Ivana North, Blue Sky is also seeing “attractive geology” and “surface expression,” Cacos notes.

On May 27 the Company announced a non-brokered private placement financing of up to 9.3 million units at a price of 15¢ per unit for gross proceeds of $1.4 million.

Those funds should “get this exploration program going,” and “will get us into the fall, when the cycle begins to pick up when it traditionally does, [and] we can raise additional funds.”

“This whole drill program is estimated to cost about US$3 million and has the potential to dramatically change the project,” he says.


Carnotite mineralization from the Anit deposit at Blue Sky Uranium’s Amarillo Grande project in Argentina. Credit: Blue Sky Uranium.

As for the uranium price, which is languishing at less than US$25 per lb, Cacos says he’s “optimistic.”

“There are a few things that give me comfort that the uranium price will pick up,” he says. “We’re seeing a lot of interest and a lot more in the mainstream press about the International Atomic Energy Agency, which says developed countries need to look at nuclear power as a viable option in order to reduce greenhouse gases, and we’re seeing a lot more acceptance of that, and I’m reading about that more and more often.”

“We’re also getting a lot more interest from institutional investors and private equity groups in the uranium space … It’s smart money and usually smart money moves first and then retail follows, so those are all positive signs,” he continues. “And we’re seeing nuclear reactors being built around the world. China is investing US$10.5 billion to build a nuclear reactor in Argentina.”

Blue Sky has defined mineralization at Amarillo Grande in three key areas, Ivana, Anit and Santa Barbara, along a 145-km trend.

The Ivana deposit is 25 km north of the city of Valcheta, where Blue Sky has its exploration camp and office. Valcheta is at the junction of Provincial Road 4 and National Road 23, where the latter connects to the deep-ocean port of San Antonio Oeste, 120 km to the east. A railway runs parallel to National Road 23 and two high-power lines crosscut the project from east to west.

At press time, Blue Sky Uranium (TSXV: BSK; US-OTC: BKUCF) is trading at 14¢ per share in a 52-week range of 12.5¢ to 23¢. The junior has 110 million common shares outstanding for a $15.4-million market capitalization.

–Trish Saywell

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures: Blue Sky Uranium is an advertiser on Epstein Research. At the time of this guest post, June 16th, 2019, Peter Epstein of Epstein Research did not own shares in Blue Sky Uranium.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Graphics provided by the author.

( Companies Mentioned: BSK:TSX.V; BKUCF:OTC,
)

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 
By Han Tan, Market Analyst, ForexTime

The Dollar index appears to be carving a path back down towards the psychological 97 handle, having been in a holding pattern in the hours leading up to the Federal Reserve’s policy announcement.

The US central bank is expected to keep interest rates unchanged this week, while expressing a more dovish policy stance that could pave the way for interest rate cuts over the coming months. Rising expectations over a Fed rate cut is testing the resilience of the DXY, whereby a Fed statement that’s interpreted as more dovish compared to market expectations could see the DXY unwinding its recent gains.

EURUSD tests 1.12 support level

The DXY was recently given a boost by the ailing Euro, following ECB President Mario Draghi’s dovish guidance towards potentially more policy stimulus for the Eurozone. EURUSD’s stay above the 1.13 psychological level proved short-lived, as it now tests the 1.12 support level. However, should the Fed prepare markets for a potential US interest rate cut, the Dollar’s softness may allow the Euro to pare recent losses and open a path back up to 1.13.

GBPUSD opening path towards 1.25

The Pound has been weighed down by Brexit uncertainties and political turmoil, as the UK Conservative party’s hunt for a new leader is underway. With GBPUSD opening a path towards the 1.25 psychological level, Sterling bears have clearly made their presence felt in the markets, as GBPUSD continues to hunt for a stronger floor. While a new UK Prime Minister being appointed by end-July may remove a layer of uncertainty over the Pound, Brexit’s uncertain path remains a major overhang over GBPUSD, which could mute future attempts at carving out gains.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By TheTechnicalTraders.com

The US dollar rally nearly half a percent today off recent support near $96.50.  This upside price move confirms the capital shift we have been talking about.  Foreign capital is pouring into US markets and US dollar as strength in the US economy continues to dominate.

This new upside move in the US dollar has established a new lower price channel that should continue to act as price support going forward. Fibonacci price structure dictates that a higher low and a higher high price rotation may follow. We would expect some resistance just below the $98 level and if the Fed lowers the rate the dollar will likely pullback and consolidate for a few weeks to digest the news, but investors will still see the USD as the strong currency and keep buying it longer term.

It is important to understand the strength in the US dollar and the US economy should continue unless something interrupts the growth and continued out what from the US. It is very likely capital will continue to seek out the best returns and the best safety which we believe is available only in the US right now. Eventually, things may change where foreign markets become more opportunistic for investors and capital begins to shift away from the US markets. Until that happens we believe the US markets will continue to drive higher and likely push towards new all-time highs.

The strength of the US dollar is muting the upside potential in precious metals as well as the US stock market. We believe the underlying strength and opportunities resulting from the capital shift, where capital is rushing into US markets, will eventually override the strength of the US dollar. In other words, investors will continue to pour money into US stocks and into precious metals as a protection mechanism against risk while the US dollar continues to rise.  If and when the US dollar does rate below the lower price channel, the US stock market may likely breakdown as well and precious metals should skyrocket higher. Until that time, we expect a moderate price advance to continue in the US stock market major and mid-cap sectors, the US dollar, and precious metals.

Gold will likely rally from the 1340 level to just below 1380 on the next leg. Then Gold will likely cause and rotate to near 1360, pause briefly, then rally to levels above 1400. We believe this rally may happen before July 12-15, 2019.

Follow our research to stay ahead of the market moves.  We’ve been warning our followers for months that 2019 and 2020 will include incredible opportunities for skilled traders. We’ve also been calling these major moves very accurately. With the US elections only 15 months away, we urge all traders and investors to pay very close attention to our research and insights.

We have recently suggested that a major price may set up in late August or early September 2019. Once we get to this date or closer to this inflection point, we’ll provide more insight as to what our modeling systems are suggesting.

UNIQUE PHYSICAL SILVER OPPORTUNITY:

I have taken advantage of the flow into the safe-haven assets like the Utility sector, and most importantly precious metals (GLD up 3.68%, GDXJ up 11.16%). I anticipated this and our XLU utilities ETF taken with members was a quick 3.11% winner. Our VIX ETF trade also hit our 25% profit target within a few days of entry.

Now, I have a few silver rounds here at my desk I am going to give away and ship out to anyone who joins me with a 1-year, or 2-year subscription to Wealth Trading Newsletter. You can upgrade to this longer-term subscription if you a current subscriber or join one of these two exciting offers below, and you will receive:

1-Year Subscription Gets One 1oz Silver Round FREE
(Could be worth hundreds of dollars)

2-Year Subscription Gets TWO 1oz Silver Rounds FREE
(Could be worth a lot in the future)

I only have few silver rounds I’m giving away
​​​​​​​so upgrade or join now before its too late!

SUBSCRIBE TO MY TRADE ALERTS
AND GET YOUR FREE SILVER ROUNDS!
Free Shipping

Chris Vermeulen

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By Orbex

FOMC On Watch

The US dollar has been a little softer over the European morning today as the market awaits the June FOMC due later today. While the Fed is not expected to cut rates, traders will be looking for a clear signal that a rate cut is coming in the near term. This should send USD index back below the 97.10 level where it is currently hovering.

EUR Down on Draghi Easing Signal

EURUSD has posted a mild recovery today, benefitting from a weaker USD. However, the overall tone remains heavy following  who said that the ECB has “considerable headroom” to ease further if the economy warrants so in the coming months. The comments were enough to send EURUSD down below 1.12, However, today the pair is holding just above that level.

GBP Recovers, BOE in Sight

GBPUSD has posted a recovery today also as USD weakness ahead of the FOMC underpins the G10 bloc. Looking ahead, however, the BOE meeting on Thursday is unlikely to do much to sustain this recovery. There is the risk of a further push lower should the BOE effectively rule out rate hikes until next year. GBPUSD remains below the recently broken 1.2604 level for now.

SPX500 Pauses Following Rally

Risk assets have been a little muted today following a large rally yesterday in response to Draghi’s easing comments. A dovish tone from the FOMC later today could add further fuel to the fire, however. The SPX500 is currently sitting at 2920.38, just below the 2939.87 resistance level.  Alternatively, if the market is disappointed tonight by a lack of dovish signaling from the Fed then we could see risk assets retreat.

Gold and JPY Rally

Safe havens have both been higher against the US dollar today ahead of the FOMC later.   XAUUSD trades 1342.99 last with price still capped by 1346.97 resistance for now. USDJPY trades 108.39 last, with price still capped by the 108.75 level resistance following two attempts over the last week.

Oil Higher

Oil prices shot higher yesterday as the latest API report indicated a drawdown in US crude stores. Traders now await the main EIA report later today to confirm the reading. Tensions in the Middle East have also provided a platform for higher prices. The announcement that the US has deployed additional troopsto the area has heightened the chances of a full conflict with Iran. Crude trades 54.15 last, capped by the 54.34 level.

Commodity Currencies Stable

USDCAD has been stable today following weakness yesterday seen in response to rising oil prices. The FOMC later today could, however, see those declines continue. USDCAD trades 13750 last, as the recovery back towards 1.3469 takes a pause. Later today we also get Canadian CPI which is forecast to have improved to 2.1% from 2% prior, which could add further support for CAD.

AUDUSD is fighting to stay above the recent .6862 low today. Resurgent oil prices, higher gold, and a weaker USD have all helped AUD to reclaim the level. However, the recovery remains tentative. Bulls will be looking for clear bullish cues from the Fed later today to keep AUD bid.

By Orbex

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

By IFCMarkets

Positive data bullish for Nd100

US retail sales and industrial production rose in May. Will the Nd100 stock index continue advancing?

US economic data were positive on balance ahead of Federal Reserve meeting: US retail sales grew 0.5% in May, and sales were revised to 0.3% growth for April after an initial estimate of 0.2% decline. US industrial production rose 0.4% in May, when 0.2% rise was expected, and utilization edged up 0.2 percentage point to 78.1%. And while home builder confidence declined slightly in June, it still recorded improvement: the reading from the National Association of Home Builders survey for June showed that home builder confidence fell two points to 64 in June. However, any reading over 50 signals improvement. At the time the Federal Reserve is viewed to be leaning toward easing after prolonged US-China tariff standoff damped market sentiment positive economic data are bullish for US equities market.

On the daily timeframe Nd100: D1 is rising after closing below Fibonacci 38.2 level. It has returned above 50-day moving average MA(50). These are bullish developments.

  • The Donchian channel indicates uptrend: it is tilted up.
  • The Parabolic indicator has formed a buy signal.
  • The MACD indicator is above the signal line and the gap is widening, which is a bullish signal.
  • The RSI oscillator is rising but has not reached the overbought zone.

We believe the bullish momentum will continue as the price breaches above the upper boundary of Donchian channel at 7688.09. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 7417.51. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (7417.51) without reaching the order (7688.09), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary
Order Buy
Buy stop Above 7688.09
Stop loss Below 7417.51

Market Analysis provided by IFCMarkets

Read Full Article

Read for later

Articles marked as Favorite are saved for later viewing.
close
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Separate tags by commas
To access this feature, please upgrade your account.
Start your free month
Free Preview