The Dollar has fallen to a year low against almost every major currency, presented the problems that the US is facing, it is understandable – but the stock market gains are what is puzzling to me.
Forex Investors and traders are pumping up the markets because historically when people have a sense of security they tend to abandon the USD and the Yen and effort their luck with stocks.
If the Nouriel Roubini is right though, the global scheme challenge that we are facing is farther from over. Only yesterday did the US revise 4th quarter 2019 and 1st quarter 2020 figures to show a decline twice than what was originally disclosed. Worse even, than at the worst time during the Global Financial Crisis in 2008 and Great Depression.
The US Economy is still in freefall
The fact that Steven Mnuchin, the US Treasury Secretary, has now begun telling news outlets that the biggest challenges place ahead of the enormous deficit is a big warning sign of that.
Broker trading companies investing and trading in the markets have begun torecognize this as the Dollar has matched the economy. The market seems to have reversed from a psychological one to a fundamental one and this is good.
I still believe that the real money to be made lies with state and New Zealand. The risk is less because of the low value of their newness in comparison with the big four, Yen, Euro, Pound and US Dollar, and the yields can be higher.
The Aussie and dweller have been doing very well as of late, and the Australian honesty we saw last week has seemingly unvoluntary such confidence in the competence of the activity there.
Oil is rising and with it, other commodities that rely on the slippery black stuff to help extract it – the $65 per barrel that oil is now is very beatific for both down under dollars.
Keep an eye out this week for the unemployment numbers from the US and the British GDP figures. They module go a daylong way to showing us how to move in the coming days.
USD / CAD offers await OPEC meeting
The US dollar was up against its Canadian neighbor on Wednesday, with the continuation of the market anticipation of the unofficial meeting of OPEC, where movements are linked in the Canadian dollar exchange rate is intrinsically tied to oil prices.
During the American session, the USD / CAD jumped to 1.2772, the highest levels of the day, before consolidating later at 1.2765 as it rose 0.25%.
It is expected that the pair finds support at 1.2752, the lowest price on Monday, and resistance at 1.2775, the highest price for the day on Tuesday, the pair’s highest in six months.
Saudi Arabia and Iran did not wait until the scheduled meeting today send a message to frustrate the hopes statements have caused the two officials in the end of any possibilities to reach an agreement at the meeting, which begins at 10:00 am US EST, 2:00 afternoon GMT.
The energy minister of Saudi Khalid al-Falih told reporters on Tuesday that the meeting is to meet with “consultation” while insisting Iran’s Bijan Zanganeh said his “time was not right to make decisions.” But the Iranian minister tried to maintain hopes of reaching an agreement in the next informal meeting, where he said in statements made by yesterday, saying: “We will try to reach an agreement in November.
Analysts pointed and specialists already that markets should not expect too much from today’s meeting. In a special report, I wrote for the site Investing.com, oil expert Dr. said (Allen Ward): “Investors should be prepared to deal with the disappointment in the case of failure to reach an agreement. In spite of the mood of cautious optimism in Algeria, there is no incentive large among the major players to reach an agreement at this stage. in fact, most of the major producing countries of OPEC and other major oil producers, are preparing to continue the expansion of production. ”
Earlier in the day, official data showed that durable goods orders in the United States, which has remained constant in August / August, which was not expected, after they had achieved the biggest rise in a year and a half in the previous month. In the official report, the US Commerce Department reported that durable goods orders have remained unchanged over the past month, which was better than expected, which was waiting for a decline of 3.3% from. As it has been revised figure a month in July to become increased by 3.6% from the first version of 4.4%.
“Durable goods” is mainly considered are large or heavy goods designed to last at least three Snot.
The report also showed that US core durable goods orders, which exclude cars and means of transport known Ptqlbha seasonal sales, fell by 0.4% during the month, which was in line with expectations. This was the index has risen by 1.1% over the previous month, a figure that was revised from the initial release of 1.3%.