President Donald Trump has been clashing with China throughout his presidency. Beijing would prefer the maneuverable incumbent over his rival. Several Asian currencies may fall if Trump wins and China has a free hand. “Kong flu” is President Donald Trump’s racist phrase to put accuse China of coronavirus. The president that vowed “only I can … “China is rooting for Trump, five reasons and market implications”
Category: Opinions
How Traders Can Make Use of the Equidistant Channel Drawing Tool?
Trading platforms offer dozens of tools for traders to analyze the charts and consequently conduct a more thorough analysis. The Equidistant channel is one of such tools which can be very handy with working with charts. The channel itself is formed by two parallel lines that maintain the same distance between them. Traders use this … “How Traders Can Make Use of the Equidistant Channel Drawing Tool?”
Non-Farm Payrolls Analysis: Good, but as good as it gets, re-closing is rapidly ravage reopening gains
The US economy gained 4.8 million jobs in June, better than expected. Data is from early June when the US economy was reopening at a rapid pace. A raging second wave of coronavirus cases is set to hit employment, including in the long term. “The US never got the virus under control before reopening” – … “Non-Farm Payrolls Analysis: Good, but as good as it gets, re-closing is rapidly ravage reopening gains”
Non-Farm Payrolls Cheat Sheet: Three stages of market reaction
Headline Non-Farm Payrolls are set to determine the initial knee-jerk reaction. The political impact of the Unemployment Rate is set to shape the second move ahead of the long weekend. Core unemployment has room to impact stocks when the dust settles. Coronavirus is upending everything – not only the labor market but also the Non-Farm … “Non-Farm Payrolls Cheat Sheet: Three stages of market reaction”
ADP Analysis: Low-hanging fruit bounce, not a recovery, S&P 500 rally seems unsustainable
ADP reported an increase of 2.369 million private-sector jobs in June, below expectations. Even after the whopping upward revision for May, job losses are devastating. After staging the best quarter since 1998, another S&P seems unreasonable. When an increase of over two million jobs – and an upward revision worth nearly six million – are … “ADP Analysis: Low-hanging fruit bounce, not a recovery, S&P 500 rally seems unsustainable”
US Elections: Three reasons why Biden’s lead over Trump is far greater than Clinton’s in 2016
There are fewer undecideds in 2020, making Biden’s lead more solid. Biden is leading by around 9% while Clinton maxed out at 7%, only after the convention. The electoral college – which Trump while losing the popular vote – is more aligned with the national map. Fox News’ polls point to a landslide loss for … “US Elections: Three reasons why Biden’s lead over Trump is far greater than Clinton’s in 2016”
GBP/USD: Ugly coronavirus contest between UK and US focus of next moves
GBP/USD has suffered from insufficient BOE support and coronavirus concerns. Preliminary UK PMIs, US investment and consumption figures, and coronavirus developments are eyed. Mid-June’s daily chart is showing bears are gaining some ground. The FX Poll shows experts are bearish in the short and medium terms. Bailey has bailed out – the insufficient central bank support … “GBP/USD: Ugly coronavirus contest between UK and US focus of next moves”
Hong Kong Dollar Peg: How vulnerable is it and if it breaks, how will it happen? Explained
China’s new security law and the slow Sino-American decoupling risk Hong Kong dollar peg. Hong Kong is the world’s No. 3 financial center and a break of the 36-year peg could cause jitters. The unpegging, if it happens, may occur while the world is distracted. The Swiss National Bank vowed to uphold the EUR/CHF peg – … “Hong Kong Dollar Peg: How vulnerable is it and if it breaks, how will it happen? Explained”
BOE Quick Analysis: Three reasons to sell sterling as Bailey seems burned out
The BOE increased QE by £100, the lower bound of expectations. Running through the program by year-end suggests slower support from Governor Bailey. Chief Economist Andy Haldane’s dissent also suggests bailout fatigue. Is that all folks? The pound has recovered its pre-Bank of England losses but seems reluctant to bounce. It may now be headed … “BOE Quick Analysis: Three reasons to sell sterling as Bailey seems burned out”
BOE Preview: Bailey may boost pound by going big on bond-buying, beware negative rates
The Bank of England is expected to boost its bond-buying scheme and leave rates unchanged. More money-printing is pound-positive, contrary to pre-pandemic logic. The specter of negative rates may limit sterling gains. Debt monetization is creeping in – but it is turning positive for underlying currencies. The euro benefited from a larger-than-expected increase in the … “BOE Preview: Bailey may boost pound by going big on bond-buying, beware negative rates”