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Top Ten Miscellaneous Slogans for the 21st of October

by with No Comment AssetsBehavioral SentimentFeatured Highlights

Top Ten Miscellaneous Slogans for the 21st of October

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10. Evil Empires: The Yankees and Dodgers will square off in the World Series with their ultra expensive rosters competing for the championship. Maybe this is exactly what the U.S needs so people can take their minds off of U.S election concerns. A contest between Los Angeles and New York is a big selling card. TV ratings should soar as Shohei Ohtani, Juan Soto, Mookie Betts, and Aaron Judge battle for the supremacy of baseball.

9. Vision: SpaceX achieved magical results as a Falcon 9 rocket booster was caught by ‘chopsticks’ as planned for and engineered. Elon Musk proved again that his preposterous ramblings are frequently correct. SpaceX is in a solid position to provide logistics for outer space exploration and development, but to also create new business endeavors as it evolves. The implied value of SpaceX mid-2024 was estimated to be around 200 billion USD.

8. 2017: Bitcoin was around 1,000.00 USD in January of 2017. The price of the digital asset is now approximately 68,500. The perception and betting that a Trump victory may be putting a spring in the step of the cryptocurrency market is intriguing. Bitcoin trades based on behavioral sentiment and not intrinsic value. Trump has spoken about crypto favorably time to time. A more welcoming SEC and CFTC regarding crypto could help values. For those looking for further correlation to BTC/USD and Trump, when he left office in January of 2021, Bitcoin was near 31,000 USD.

7. Downturn: Environmental, social and governance investing has taken a hit compared to results from the past couple of years as outflows from investment vehicles led by the likes of BlackRock and others make noise. ESG has lost its luster as the race for superior profits has run into headwinds and analysts question values and revenues. What will happen over the next few years, particularly if ESG investing finds that it has fewer friends in the U.S halls of power?

6. Data: U.S economic statistics will be rather lacking this week, the highlight may be the Flash Manufacturing PMI numbers on Thursday. Some may try to make the weekly Unemployment Claims a spectacle too, particularly brokers who may be trying to entice day traders into Forex positions. However, the rather calm seas regarding data will turn tumultuous next week because U.S Advance GDP, Core Personal Consumption Expenditures, and the Non-Farm Employment Change results are all on the schedule.

5. Underwater: WTI Crude Oil started to flirt with the 70.00 USD mark last Tuesday, and after a few days of remaining within a rather tight range, support was proven vulnerable. As of this writing WTI is near 69.65. The lack of an attack on Iranian oil infrastructure by Israel has seemingly calmed the energy sector. Fearmongering and bombastic rhetoric have not caused WTI Crude Oil to sustain highs. The commodity is within the lower elements of its long-term price range technically.

4. 24 Carat: Record values in gold are being traversed. As of this writing the precious metal is near 2,734.00 per ounce. Gold was around 1,200.00 USD in January of 2017. Inflation, speculation and concerns about central banks are likely helping gold shine. Some may say the rise in value is a derivative of safe haven investing. Day traders may view the price as speculatively high and dangerous because of its intraday volatility, but long-term gold bugs know the historical track record of the precious metal and its ability to preserve wealth.

3. FX: Major currencies paired against the USD are finding increasingly choppy waters near-term. The USD/JPY is dangerously close to the 150.000 mark, the USD/MXN is within sight of 20.00000, and the GBP/USD is hovering above 1.30000. The EUR/USD is battling too and scuffling below the 1.09000 ratio. With no major data coming this week, but major risk events approaching on the horizon, now is the time for Forex traders to remain cautious and not get too ambitious. Forex may provide technical traders with the ability to wager on perceived support and resistance near-term. But soon, a huge wave of volatility is going to hit currency speculation and financial institutions are certainly getting prepared for the storm.

2. Tick Tock: The U.S election is only a bit more than two weeks away. This may be the last week for any huge surprises which could sway the decisions of voters. Harris and Trump and campaigning hard and receiving intense media coverage. Early voting is underway, but November the 5th is the date everyone is focused on. When the clock strikes November the 6th in the U.S, global investors will react.

1. Behavioral sentiment: Key market barometers will continue to get plenty of attention in the coming days. U.S indices serve as a heat check regarding the potential outcome of the U.S election. Equities are near highs and this seems to be a rather solid indication risk appetite remains the dominant feature. While some will not want to hear it, this likely means many folks in the investment world are starting to believe Donald Trump might win the U.S election.

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AMT Top Ten Miscellaneous Concerns for the 6th of October

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

AMT Top Ten Miscellaneous Concerns for the 6th of October

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10. Ya Gotta Believe: The New York Mets are finding ways to score in the late innings. Having won with last minute runs against the Atlanta Braves in the 8th and 9th innings early last week to save their season, hitting a home run to take the lead against the Brewers in the deciding game of the Wild Card in the 9th, and last night’s 5 runs in the 8th to take the lead in Game One against the Phillies in the Division Series has been rather remarkable. Game two between the Mets and Philadelphia will be played later today.

9. Information Technology: OpenAI’s value is now estimated around 157 billion USD, this after their latest round of investments garnered that includes both Nvidia and Microsoft funding. The search engine arms race will continue to get tougher and more competitive, but recent data released by Statcounter shows that Google still has over 90% of the U.S search engine traffic. While it has lost some ground in the search engine battles to upstarts statistically, Google remains dominant. Microsoft has made inroads with Bing, and Yahoo has also gained, but Google’s stranglehold via browser usage remains strong.

8. Helene Meets Milton: A pair of hurricanes – this if Milton fulfills forecasts and becomes a major storm – are not helping create easy days in the U.S Southeast, nor for the Biden administration. Criticism regarding a lack of government help has been heard in the aftermath of Helene and with another potential punch about to be delivered by Milton, U.S relief agencies like FEMA will certainly be pushed to the limit organizationally.

7. Oil Alerts: WTI Crude Oil went into the weekend close to 75.00 USD per barrel as nervousness increased about the potential of an attack on Iranian oil infrastructure. While many nations in the West do not purchase Iranian Crude Oil openly, the Iranian commodity is sold to China at nearly an 89% ratio. This allows oil from other suppliers like Saudi Arabia, the U.S and Mexico to sell elsewhere and the price of Crude Oil to remain relatively tame. However, if the supply of Iranian Crude Oil were suddenly to be crippled for any length of time, the price of the commodity from the other major suppliers would certainly go higher if expanded demand needs to be met. Speculators should pay attention to strike prices in the energy sectors via options trading in the future markets to understand potential vulnerabilities that large players may be anticipating.

6. Precious Metal: Gold prices remain within sight of record values, but below the apex values seen on the 26th of September. Risk sentiment, speculative forces and long-term investors are seemingly creating resilient support levels. Gold went into this weekend near the 2,653.00 USD ratio. Silver remains near 32.00 USD per ounce, which is where its price was traversing in May. Speculators intent on betting that silver will rise because nervous market conditions will create more demand need to be careful. A vast supply of silver exists in known mines globally, and producers simply need to extract more of the commodity to garner profits which is relatively easy. In other words, gold and silver do not correlate as much as some people believe.

5. Forex Chaos: Day traders of USDJPY, NZDUSD, EURUSD and a slew of other major currency pairs were taken on a wild ride last week as USD centric strength surged and fragile conditions in global markets grew. The coming days will remain difficult for FX retail traders as they face a whirlwind of threats. Technical and fundamental traders are being hit by shifting winds generating via a myriad of worries. Speculators without deep pockets are advised to remain cautious in the coming days because trading dynamics are not likely to ease. Yes, there will be price velocity which allows for quick profits, but those who are willing to bet on the prospects of fantastic gains must also accept the dangerous proposition that wildly expensive losses if they are on the wrong side of a trade are equally possible. Brokers will certainly welcome their clients with open arms this coming week because the volatility may entice many with the potential of getting rich. However, brokers will not tell you about the poor house on the other side of the street.

4. Unscripted: There are a little more than four weeks before the 2024 U.S elections on the 5th of November. Trump appears to be gaining momentum in polls, but certainly remains vulnerable per his ability to speak without a script and create verbal firestorms. Kamala Harris ran into problems recently with a suspected malfunctioning teleprompter and her inability to escape repeating the words ’32 days’. While the two candidates battle for voter supremacy, questions persists about the current leadership from the White House and who exactly is running the show.

3. Noisy Data: The Federal Reserve and economic data remain concerns. This Thursday the Consumer Price Index data will be released. If the inflation statistics can come in below expectations this may soothe financial institutions who have leaned into the notion the Fed needs to remain aggressive in November. Another interest rate has been expected, but some are nervous the Fed may not be able to cut as fully as wished. However, day traders need to also understand politics are playing a role in the bombastic soundbites being generated by the media, this as they try to deliver messaging which reflect their viewpoints. If inflation numbers remain under control the mid-term outlook continues to point towards more interest rate cuts. While the U.S jobs numbers on Friday were better than expected it should be noted revisions downward were seen again. There is one more Non-Farm Employment Change report before the election, by then it will probably not have an impact on potential voters, but its affect on the Fed will certainly be felt.

2. End Game: As the Iranian and Israel conflict escalates and threatens to become a dark spiral, some are still hoping for an avenue which will allow normality to return. That appears to be wishful thinking for the moment. Reports, perhaps paranoid, regarding an earthquake in Iran yesterday with a magnitude 4.5 seismic rating which was 48 kilometers from Semnan was noted by the USGS. The reason why it is potentially scary notion is because some are questioning if this was a nuclear test being conducted by Iran.

1. Risk Adverse: A trifecta of nervous behavioral sentiment is shadowing the financial markets via Fed outlook, Middle East tensions, and the approaching U.S election. Unfortunately none of these components are likely to disappear soon and in fact may grow in stature as outlooks potentially create more anxiousness. Safe havens in the USD, gold and U.S Treasuries may find they deliver some calm for those that are nervous. However, it must be noted that U.S equity indices gained nicely late last week after gains on Friday. The Dow 30 and S&P 500 remain near apexes and the Nasdaq Composite is within sight of highs. In other words, for all the talk about dark days, financial markets and investors are still active.

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Trading Risks: Easy to be Nervous Now, But Calm is Needed

by with No Comment AMT MarketsAssetsFeatured Highlights

Trading Risks: Easy to be Nervous Now, But Calm is Needed

Simply put it is too easy to be nervous when contemplating the markets if you are a day trader. Today the Non-Farm Employment Change data will be published in the U.S and the Middle East conflict continues to reverberate. However, if a speculator looks at the markets they will see risk adverse trading has produced rather predictable results in many assets.

Gold remains within its higher known price realm, and WTI Crude Oil is trading around 74.00 USD after President Joe Biden for some odd reason felt it was necessary to discuss publicly potential targets Israel may pursue against Iran. Also, Biden’s influence on the decision making in the Middle East appears to be fleeting and this is making financial institutions additionally anxious.

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WTI Crude Oil Five Day Chart as of 4th of October 2024

The employment numbers from the U.S today are vital regarding the Federal Reserve’s interest rate decision for November. If today’s jobs statistics come in weaker than expected this could help the USD lose some ground in Forex against major currencies. However, there is also the prospect that headwinds via concerns from the Middle East will keep a steady diet of risk adverse trading a driver for behavioral sentiment going into the weekend. Forex remains dangerous for day traders in the near-term.

Traders who believe more volatility will come because of the ramifications in the Middle East can certainly pursue assets like gold and WTI Crude Oil. Correlations with risks that are flourishing as potential conflict brews is not a foolish wager, but it is also difficult for speculators to pursue these trades via CFDs offered by many brokers, this because day traders may have to hold onto their positions too long in order to take advantage of potential moves. If a speculator can pursue options positions via future markets, this could prove to be a solid tool, provided strike prices are not outrageously expensive and the prospect of time erosion is not too fast.

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Gold Five Day Chart as of 4th of October 2024

This is not an easy time to be a day trader and those that are nervous should choose to remain on the sidelines. U.S Treasury yields have increased this week as behavioral sentiment has become jittery. It is important to remember however that short-term reactions are frequently not related to long-term outlooks. Treasury yields have come down significantly in the mid-term and remain within the lower part of their range. The same can be said for equity indices this week. The notion that the world will not spin out of total control should be considered. Risk adverse trading will certainly begin to gravitate towards optimism at some point, it is only a question of time.

The point for day traders is this, it is easy to be nervous. Watching television all day and looking at smartphones for updates on developing sagas does not help create calm. Large institutional traders have been within these volatile waters before. Yes, large players also have to remain diligent, but they will certainly do their best to remain realistic. Short-term price velocity often leads to reversals and you can be assured large financial institutions will take advantage of this insight.

If today’s U.S jobs numbers meet or come around expectations this would be a welcome result for markets which appear to be standing on fragile ground. Traders while looking at today’s Non-Farm Employment Change numbers and Average Hourly Earnings statistics should also be mindful of downward revisions to previous reports which have occurred almost consistently for a handful of months. Initial trading reactions to the publication of jobs data are often met with sudden reversals due to revisions in numbers being spotted a few moments later by analysts.

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USD/JPY Five Day Chart as of 4th October 2024

As for the Middle East, financial institutions and traders are all in the same boat. Patience and deep breaths are needed. The trillion dollar question lurking, is there an end game that is viable and can restore calm, or will retribution and hatred cause the conflict to spiral out of control?

The volatility seen in Forex the past handful of days, including the USD/JPY, have caused dynamic results. There is no denying risk adverse trading has taken hold of the marketplace. The trifecta of U.S jobs numbers today, tensions in the Middle East, and the approaching U.S election have set the table for a tumultuous meal. At some point day traders may want to walk away from the table to avoid indigestion and return only when tranquility has been restored.

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AMT Top Ten Miscellaneous Salvos for the 29th of September

by with No Comment AMT MarketsAssetsFeatured Highlights

AMT Top Ten Miscellaneous Salvos for the 29th of September

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10. Profit: OpenAI has announced plans to become a money making corporation. Founded in 2015 the artificial intelligence company had the stated goal of creating ‘safe and beneficial’ technologies via its foundation, and now will face the slings and arrows of investors and potential critics. The AI boom the past two years has produced many new competitors. Can Sam Altman, the CEO of OpenAI, sustain the momentum generated or will negative organizational impetus turn the company into an also-ran?

9. Softs: Cocoa, Coffee and Sugar all remain volatile and playgrounds for day traders who like casino experiences via CFDs. Cocoa is again over 9,000 USD, Sugar touched February highs this past week as it shows signs of extreme speculation, and Coffee Arabica surged to record prices on Thursday and Friday. Over exuberance however is not being created by day traders, it is the work of large institutional traders who are in control. While the ‘softs’ may look overbought it would be unwise to bet against trends while big players pursue bullish notions. Massive money is being made in these commodities, but losses are also being felt by those who wager incorrectly.

8. Escalation: Risks in the Middle East have become a focal point, this as the region appears to have generated more must watch television. The noise which the media seemingly craves is hard to escape. Market participants cannot be blamed for maintaining vigilance as sabers rattle, especially after Friday’s events in Beirut when Hassan Nasrallah, the Hezbollah leader, was eliminated by Israel. However, experienced traders who are also strategic analysts have seen this show before and may turn the channel knowing there will be reruns in the future.

7. WTI Crude Oil: Prices closed within the lower elements of the commodity’s long-term depths. Traders did have a chance to react to Friday’s developing news from Beirut, but the energy sector remained calm. The price of WTI was around 68.57 going into this weekend, after trading at highs earlier in the week. For all the talk about fear of escalation from the Middle East, the price of Crude Oil remains within a remarkable bearish stance as large traders appear to be more concerned about lackluster economic growth globally.

6. Apex Gold: The price of the precious metal flirted with 2,685.00 momentarily on Thursday. The price of gold going into this weekend finished near 2,658.00 USD. Sustained highs have certainly continued to catch the attention of short-term speculators, but they need to be aware the commodity does remain susceptible to sudden spikes. While alluring, gold remains dangerous for day traders.

5. Countdown: The U.S Presidential vote is slightly more than 5 weeks away. Interestingly, the Fed will announce their Federal Funds Rate decision only two days after the election results. Will the outcome of the vote change the Fed’s perspective on interest rates? Financial institutions will definitely brace for the outcome of the U.S vote. Cautious winds will start to prevail as the 5th of November draws closer.

4. China: A huge stimulus package from the Chinese government has been initiated, but talk regarding potential effects and outcomes are being debated. The notion that the Chinese economy is be driven too much with a top to down centralized approach is being vocalized by some worried ‘outside’ observers. The USD/CNY is trading near 7.0105. The Shanghai Composite is near 3,087, this after massive gains via a reversal upwards which was sparked from lows around 2,691 which were seen on the 18th of September.

3. Risk Appetite: U.S equity indices continue to challenge record values in the Dow 30 and S&P 500. Yes, the Nasdaq remains beneath its highs, but is still within sight of all-time heights. Trading this week will work under the shadow of the jobs numbers coming this Friday. Financial institutions have produced rather positive behavioral sentiment and do not seem like they are ready to back away from this stance. Are some large market participants starting to quietly bet on the possibility of a Trump victory which they believe would be good for U.S stocks?

2. Forex: USD centric notions remain the impetus in foreign exchange. The USD Cash Index is within the lower boundaries of its long-term values as it trades near July 2023 realms. If the USD Cash Index moves lower it would then start to technically be within price calculations not seen since the spring of 2022. Action in the USD/JPY and GBP/USD, and other major currency pairs have been volatile, choppy conditions should be expected this week for traders leading into Friday’s key data.

1. Jobs Numbers: Last week’s GDP statistics met expectations, while inflation numbers via the Core PCE Price Index came in slightly below estimates. The growth and inflation outcomes set the table for the Non-Farm Employment Change and Average Hourly Earnings which will be reported on the 4th of October. If the employment numbers continue to trend lower and there are additional negative revisions this coming Friday, this could propel USD selling. Financial institutions are trying to figure out if the Fed will cut by 0.25% or 0.50% in November. The Fed was aggressively dovish when they cut the Federal Funds Rate by 0.50% on the 18th of September, but the U.S central bank might want to be cautious in November following the election and wait for all the dust to settle and cut by only 0.25%. Thus allowing for another interest rate cut in early 2025 if needed. The broad markets are in a reflexive mode for the time being, this Friday’s data will be important and cause an immediate reaction that day traders will notice.

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Risk Appetite: Forex and Equities and Cautious Optimism

by with No Comment Behavioral SentimentEconomic CalendarFeatured Highlights

Risk Appetite: Forex and Equities and Cautious Optimism

Day traders can clearly see that risk appetite has taken hold of behavioral sentiment early this week. USD centric price action has created highs for the British Pound, South African Rand, Singapore Dollar and a host of other major currencies paired against the USD. Yesterday’s poor showing via the CB Consumer Confidence reading in the U.S poured additional fire onto the notion the U.S economy is not doing as well as Fed Chairman Jerome Powell expressed last week, which means caution should be used when looking at the broad markets. Speculators who only make short-term wagers cannot let blind optimism be the guiding light.

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USD/SGD Three Month Chart as of 25th Sept. 2024

While today will be thin with economic data, Thursday’s Gross Domestic Product results could prove to be another ignition switch for market impetus. The quarterly Final GDP result is widely expected by analysts to produce a gain of 3.0%. The Final GDP Price Index statistics are anticipated to show a 2.5% ratio. If the growth and inflation numbers miss their marks this could set off a momentary storm in the markets. A good example of trading that has already been baked into the cake regarding values and mid-term outlook is the USD/JPY, which while maintaining its bearish stance has clearly found a price realm financial institutions are now maneuvering carefully within as equilibrium is battled.

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GBP/USD Three Month Chart as of 25th Sept. 2024

Yet, many financial institutions have clearly leaned further into their optimistic stances particularly via the U.S major equity indices and day traders are likely trying to follow the momentum being generated. Yes, New Home Sales will be published in the U.S today, but these numbers carry a lot of complex considerations which analysts tend to dissect in a myriad of ways, meaning that while they will get some attention, the largest players will stay focused on tomorrow’s growth and inflation data coming via the U.S GDP outcomes.

USD/ZAR Three Month Chart as of 25th Sept. 2024

Forex traders should keep an eye on U.S Treasury yields, yesterday’s slight climbs early in they day were mostly met by reversals lower later on. There is also the knowledge that the yields are traversing long-term depths and there is an assumption they don’t appear ready to see a large shift in momentum. The Federal Reserve is widely expected to cut the Federal Funds Rate again in November by another 0.25%. Numbers via reports like tomorrow’s GDP statistics, and Friday’s Core Personal Consumption Expenditures Price Index will shake existing behavioral sentiment and the Fed’s outlook. The Core PCE number has an estimate of 0.2% per its monthly reading, the last three reports have met expectations.

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USD/JPY Three Month Chart as of 25th Sept. 2024

Fed Chairman Jerome Powell will speak tomorrow at the U.S Treasury Markets Conference in New York, but his remarks will have been pre-recorded and presented via video. Treasury Secretary Janet Yellen will also speak afterwards at the meeting. However, their thinking is widely known and they are expected to sound rather tame. It also needs to be added that both Powell and Yellen are fully aware the U.S Presidential election is approaching. Neither one of them is going to risk saying something that can be interpreted as economically defiant.

Traders should expect the potential of volatility developing tomorrow as financial institutions and larger market participants position for the GDP reports, but if the numbers are within sight of expectations, it is likely current price equilibriums will continue to reflect current risk appetite dynamics. Proper risk management and the use of conservative leverage should be fully practiced. Retail traders should also begin to start considering that Non-Farm Employment Change data that will come from the U.S on Friday, October the 4th. The jobs numbers next week could pose a significant threat.

The Fed last week made it clear they believe there was reason to lower the Federal Funds Rate (while playing catch up) and there is the potential to enact further dovish actions in the months ahead. However, Jerome Powell also insisted – paraphrasing – the U.S economy is rather strong and added this is being reflected in solid growth statistics and a jobs market which may be weaker but remains stable.

Given the Fed’s propensity for a conservative approach, they have crawled out a rather precarious limb regarding their rather positive attitude. The coming economic data will certainly be noteworthy tomorrow and Friday, and via next week’s job numbers. Will optimistic equilibrium in Forex prevail over the next week? The major currency pairs will certainly be tested.

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Nervous? Central Banks Cautious, FX and Asset Equilibrium

by with No Comment AssetsBehavioral SentimentFeatured Highlights

Nervous? Central Banks Cautious, FX and Asset Equilibrium

Sometimes when looking for ideas regarding a risk analysis article it is difficult to find a timely subject. Exaggeration is often used to grab attention. This week and next will not be one of those times. Equities, Forex and commodities have produced nervous results since last Monday. The broad markets appear to be in search of equilibrium, but price velocity while higher than normal hasn’t produced a volcanic surge of pain. Financial institutions were presented less than inspiring jobs data this past Friday and day traders hopefully had their risk management working. Everyone will need to be paying attention this week too.

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Gold One Month Chart as of 9th Sept. 2024

Gold has hovered around the 2,500.00 level and while it certainly is a short-term speculative asset for day traders, the precious metal also serves as distinct barometer of behavioral sentiment and long-term guidance regarding inflation. Recent economic data has created concerns in financial institutions about the potential for a stronger than anticipated U.S downturn. The volatility and sell off in equity indices last week is a clear sign investors would like the Federal Reserve to be more aggressively dovish.

This coming week is packed with a variety of risk events which will keep all market participants engaged. Long-term investors may feel calm as they rely on their outlooks which extend over a handful of years, but anyone who needs a firm grasp on short and mid-term viewpoints might not be comfortable. It is important not to cry wolf too often, but based on the trading results seen the past week it is worthwhile to point to the turbulent outcomes and issue a warning that more volatility could develop.

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Nasdaq 100 One Month Chart as of 9th of Sept. 2024

Some analysts may apply the thought that what we have seen was profit taking, and this can certainly be debated. The coming two weeks have plenty of noteworthy events on the calendar. Besides the listed risk highlights noted below, the Fed will release its FOMC Statement on Wednesday the 18th, the BoE will follow on the 19th and not to be outdone the Bank of Japan will step onto center stage on Friday the 20th of September.

While long-term investors likely believe all variables will return to known price realms and that central banks sooner or later will fall into their proper places regarding monetary policy, day traders who are gambling on short-term momentum must try to figure out where behavioral sentiment is leaning. One of the ways speculators without deep pockets can put the odds in their favor concerning potential profits, is to make sure they are practicing rock solid risk management and not stepping into Forex trades, equity indices via CFDs wagers, and commodities bets when they are displaying rough conditions without being prepared.

Monday, 9th of Sept., China Consumer and Producer Price Index – the inflation reports from China both came in below their estimates earlier today. While some may believe that less inflation than predicted is a good thing, it isn’t when the economy is suffering from deflationary pressures. Lackluster spending from consumers in China continues to highlight negative sentiment about prospects for growth. The USD/CNY is near the 7.1125 ratio as of this writing.

Tuesday, 10th of Sept., U.S Presidential Debate – while not an economic data event, investors might want to pay attention to the answers given by Vice President Kamala Harris and former President Donald Trump. The race for the White House appears to be close according to various polling. It could prove interesting for financial institutions if Harris is questioned about her ideas regarding taxing unrealized capital gains.

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USD Cash Index One Month Chart as of 9th Sept. 2024

Wednesday, 11th of Sept., U.S Consumer Price Index data – the inflation reports will certainly get the attention of financial institutions. If the annual CPI report comes in weaker than the previous outcome, this could spark more USD centric weakness in Forex. All asset classes will react to the inflation numbers because they are likely to play a major part in the Fed’s FOMC decision in one week’s time. The USD Cash Index is still lingering near lows, but for it too resume a more bearish trajectory, financial institutions will need to believe the Federal Reserve is going to become increasingly dovish.

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EUR/USD One Month Chart as of 9th Sept. 2024

Thursday, 12th of Sept., European Central Bank Main Refinancing Rate – The ECB is definitely going to cut its prime borrowing interest rate, the question is how much of a haircut they are going to provide. A 0.25% cut has certainly been traded into the EUR/USD, but many financial institutions believe there is a possibility to see a 0.50% basis cut. Can the ECB and Christine Legarde be aggressive? The European Union remains under recessionary pressures and inflation data is starting to show signs of erosion. The amount of the interest rate cut from the ECB will also be a telltale sign regarding what will happen via the Federal Reserve on the 18th of September. The EUR/USD will react to the European Central Bank’s decision, and global assets in far off places may react too because behavioral sentiment among investors may shift according to the rhetoric provided. Prediction: The ECB will stay cautious and cut by 0.25%, while saying a November rate cut is likely if economic data remains under pressure. Having said the above, the ECB should cut by 0.50% this Thursday, if they do not – financial institutions will not be pleased unless ECB President Legarde sounds very dovish during her Press Conference.

Thursday, 12th of Sept., U.S Producer Price Index – more inflation data from the U.S will provide investors an other opportunity to glance into the Fed’s looking glass. But if these PPI numbers meet or are near the anticipated results, financial institutions may be reacting to the ECB’s rate decision more because they might believe it is a better clue regarding the Fed’s Federal Funds Rate decision which will come in a handful of days.

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USD/JPY One Month Chart as of 9th Sept. 2024

Friday, 13th of Sept., Japan Revised Industrial Production – this number may not get much attention, but because the Bank of Japan will release its Policy Rate on the 20th, the outcome could impact existing sentiment in the USD/JPY. The Japanese Yen has continued its bearish trajectory and traders who are wagering on more downside should not bet blindly on selling positions because intraday trading remains very choppy. The USD/JPY is now touching values last seen in a sustained manner in early January of 2024, lower values were seen in December 2023, and lower ratios that traversed the 138.000 realm and proved choppy occurred in the spring of 2023.

Saturday, 14th of Sept., China New Home Prices, Retail Sales, Industrial Production – this parade of data from the nation will be important. Foreign investors remain concerned about China’s economic prospects. The deflationary winds that have been blowing in the Asian giant have been well documented. The results from these three reports are expected to be lackluster.

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Summer Optimism as Forex and Equities Focus on Fall Outlooks

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

Summer Optimism as Forex and Equities Focus on Fall Outlooks

Fed Chairman Jerome Powell admitted the obvious at the Kansas City’s Fed’s Jackson Hole Symposium last Friday. The realization the U.S Federal Reserve is going to cut interest rates confirmed what many financial institutions had positioned their trading desks for via forward cash Forex contracts over the past month.

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USD Cash Index One Year Chart on the 27th August 2024

The USD has been expected to grow weaker by many people because most knew the Fed would have to state a September rate cut would be delivered. The question that was also somewhat answered is the notion if the Fed will also cut in November. Though Powell certainly did not say a rate cut would happen in November, his rhetoric made it clear the Federal Reserve is considering a dovish perspective which could translate into additional cuts down the road.

The Fed has been criticized for being too passive and while Powell can be congratulated for his rather unemotional Federal Reserve leadership, he and the Fed can certainly be faulted for not reacting quickly enough to ‘transitory’ inflation and then not responding until this past weekend to the need for cutting interest rates with dovish rhetoric. Let’s also remember the U.S Treasury (government) is on the line to pay exorbitant costs for debt repayments because of bad U.S fiscal policy.

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As an interesting related side note, the head of the Brazilian Central Bank, Roberto Campos Neto, made a strong appeal for governments to be fiscally responsible while speaking at the Jackson Hole Symposium this past weekend. While he could have been talking to any number of nations regarding spending, his points were obviously meant to highlight his disagreements with the Brazilian government led by Lula da Silva and the Workers Party. Roberto Campos-Neto stated that approximately 50,000,000 (yes, million) people in Brazil receive government allowances, while only about 43,000,000 people are earning money via employment and business enterprises. Traders who want to keep an eye on the USD/BRL this week may be entertained by the potential volatility within the currency pair which is trading a hair below 5.5000 before it opens today. The USD/BRL has certainly not been correlating to broad Forex USD centric weakness, and demonstrates the internal domestic fight between Lula da Silva and the Brazilian Central Bank regarding fiscal policy.

Jobs data from the U.S has continued to turn negative, particularly via revised reports which are being published rather ‘quietly’ as election season approaches. Yet, financial institutions have been aware of the weaker jobs numbers. While the poor jobs numbers combined with eroding inflation is good for USD centric weakness due to the knowledge the Fed will have to reverse from its rather high interest rates, the question becomes how much per the financial institutions selling of the USD has been acted upon in Forex. Is the USD oversold for the time being? It depends on trading timeframes certainly.

Weaker USD centric positions will need more impetus for further bearish trajectories to be seen near-term. Financial institutions may believe equilibrium is being approached, this because it appears interest rate cuts equaling a 0.50% decline seem to have been factored into Forex. Will the Federal Reserve be put into a position in which they will be able to cut by a full basis point (-1.00%) over the next six months?

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Gold Six Month Chart on the 27th of August 2024

Gold is trading near 2,500.00 plus at the time of this writing. Gold has touched higher levels in the past week and is getting a round of applause from its throngs of believers who proclaim the precious metal the ultimate safe haven against inflation and erosion fears via fiat currencies – including the USD. As a reminder, Bitcoin is highly speculative and doesn’t have the historical (thousands of years) track record that gold has acquired.

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GBP/USD Five Year Chart on the 27th of August 2024

The EUR and GBP are traversing higher territories not seen in a while. The EUR/USD is near the 1.11700 level, which was last traded in July of 2023, and it has been since 2022 that sustained prices above this current realm have been traded. The GBP/USD is near 1.32000 and is within a value ratio last seen in March of 2022. Central banks will remain in focus as summer ends and the fall trading season gets underway. The ECB will release their Main Refinancing Rate on the 12th of September, the Fed will present the Federal Funds Rate on the 18th, and the BoE will follow suit with the Official Bank Rate on the 19th.

However, those September dates are still a few weeks away and financial institutions do have data this week which could stir Forex, equity indices and U.S Treasuries in the near-term. Day traders often do not have the ability to rely upon mid and long-term outlooks, and instead have to be content with trying to ride the momentum trends being caused by larger players. While the USD weaker outlook is tempting to rely upon, speculators who are looking for quick hitting wagers need to judge technical charts and try to grasp existing behavioral sentiment which can shift rapidly depending on lengths of time.

Traders should remember the U.S will celebrate its Labor Day holiday next Monday, which sets the stage for potential sudden volatility to flourish before big financial institutions in the States leave for their long weekend. The last week of August should be rather tranquil. Certainly most long-term investors feel as if they have more clarity regarding interest rates and will be able to relax. The hope is that the current calm is not the quiet before the storm due to lingering political issues in the U.S, France and elsewhere. And that escalation of the Ukrainian and Russia war, and the Middle East conflict do not cause sudden surges of bedlam.

Economic data events the remainder of this week that should be given consideration includes the U.S CB Consumer Sentiment reading today. Yesterday’s U.S Durable Goods Orders came in with mixed results as the Core number fell by minus -0.2%, but the broad number came in with a substantial gain of 9.9%.

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USD/JPY Three Month Chart on the 27th of August 2024

The Bank of Japan has published their Core CPI data today and the outcome came in below expectations with a gain of 1.8% compared to the estimate of 2.1%. The USD/JPY is trading near 144.790 at the time of this writing as it continues to show bearish tendencies. The Bank of Japan which was heavily criticized in many circles may actually be achieving what they have planned, this as they have tried to stimulate stronger export and confront inflation. Their battle is not over yet.

Australian CPI data will be published on Wednesday. And on Thursday, German Preliminary Consumer Price Index numbers will be released. The EUR/USD could react to this report, but the European Single Currency remains highly USD centric. Which sets the table for the U.S Prelim Gross Domestic Product report also on Thursday. The growth number from the U.S could diminish selling considerations for the USD if the report comes in stronger than expected. However, the GDP Price Index and weekly Unemployment Claims from the U.S could also impact short-term behavioral sentiment and cause a bit of turbulence if negative results are published.

Friday will see more CPI numbers from Japan, CPI and GDP numbers from France, and GDP data from Canada. But before going into the long holiday weekend the U.S will present one more major report with its Core PCE Price Index and the monthly statistic is expected to show a slight gain of 0.2%.

China watchers will get Manufacturing PMI numbers early on Saturday. Recent China data continues to show signs of economic stress regarding foreign investment, domestic consumer spending, and deflationary results. Buyers beware.

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Telling Someone to Not Trade Works Like Reverse Psychology

by with No Comment AMT MarketsAssetsFeatured Highlights

Telling Someone to Not Trade Works Like Reverse Psychology

From the strange but true file, comes the realization after working within risk analysis for a long time that telling a speculator to avoid a particular market because I believe it is going to be volatile often has the opposite effect. Perhaps the best thing to do is to remain silent and allow inexperienced day traders to lose their money, convincing them to walk away from speculative endeavors forever. But I prefer to constantly teach and warn, while providing help for those who have made the firm decision they want to pursue the financial markets.

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It is rather well documented that 90% of retail traders lose their money. And as pointed out within AMT since our inception most brokerage institutions are counting on you to lose money. This because many platforms are letting you trade via CFD assets and virtual Forex wagering, meaning the brokers take the risks that you may actually make money and are willing to pay out your winning bet, because they know most of the time you are going to lose. If not today then tomorrow, because casinos always believe the gamblers will lose.

People ask why I refer to wagers and bets when I write about Forex, commodities and equity CFDs. The answer is because I feel the need to remind speculators constantly they are entering a domain that is akin to gambling. I have come to learn that I cannot stop inexperienced day traders from making costly mistakes by telling them not to trade. New retail speculators can be helped by providing them risk management via basic knowledge and expanding upon the theme. Angry Meta Traders intends to always make risk management and analysis of the markets its core foundation.

Yes, we also provide our insights about potential directions in particular assets constantly, and try to contribute our thoughts on the thinking of the large players within the marketplace. We would like AMT to become a membership pass into the temple for retail traders and the occasional institutional participant that reads our material. Temples are usually the domain for philosophies which have been gained through years of experience and contemplation about the human condition.

While it may sound absurd to discuss temples, experienced traders unless they have been merely lucky their entire careers, know the psychology of financial institutions is always important. Understanding the behavioral sentiment of large players and the quantitative engineering they use to make decisions is crucial. The keys to the inner workings of the financial temples is a metaphor, hopefully allowing day traders to feel like they have been given the ability to look inside and understand the decision making process of large institutions that can move the markets.

Angry Meta Traders is not always right, our analysis and predicted movements about assets are sometimes wrong. Yet, by stressing risk management via limited leverage, stop losses when appropriate (they almost always are), and telling traders to not be overly ambitious, we hope AMT delivers constant reinforcement and needed learning.

The noise of the market can be quite intense, false narratives, and misguided analysis are dangers all traders face, even the most experienced large players and financial institutions understand they will not always be correct. And this takes us back to the notion that trading for inexperienced people is not easy. But I know telling you not to trade works in the wrong way. So what I tell you now is to be patient, learn, gather wisdom as you trade and hopefully you will attain some of the tools needed to make your speculative life easier. Knowing that 90% of traders lose money, we hope that via our efforts to inform that we can put you within the small percentage of people who actually profit.

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AMT Top Ten Miscellaneous Remarks for the 14th of July 2024

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

AMT Top Ten Miscellaneous Remarks for the 14th of July 2024

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10. Words of the Day: Political rhetoric is using platitudes and subterfuge camouflaging verbal nonsense, masking a vacuum of non-results and causing fatigue of populist promises.

9. Harris Prediction: After the NATO press conference in which Biden was more lucid but still made mistakes, it is beginning to feel like Kamala Harris is being given room to audition for the Presidency by the Democratic machine. If her polling numbers show improvement over the next couple of weeks, look for Harris to replace Biden at the DNC in Chicago, if her polling numbers are not good enough in the eyes of the elite power brokers, it is possible Biden may be asked to give up his delegates, allowing for an open convention.

8: Zombie Inflation: Data results via the U.S CPI caused a reaction in the broad markets, and volatility in Forex. While the broad monthly Consumer Price Index number on Thursday was minus -0.1%, the PPI numbers on Friday came in higher than expected causing some to feel that inflation remains a plague. However, if the Producer Price Index was interpreted as being higher because rising prices are coming via more expensive employee costs (which might see an end to the cycle sooner rather than later if jobs data continues to weaken) this is why there might not have been a violent Forex reversal on Friday. And Consumer Sentiment numbers from the University of Michigan came in below expectations again, and inflation expectations via the consumer survey showed some erosion.

7. Federal Fund Rates: Financial institutions have clearly begun to factor in the belief an interest rate cut will occur in September. The Fed which has been cautious consistently the past seven months may now have enough ammunition to consider becoming more dovish. A September interest rate cut has certainly been factored into Forex and Treasury yields, and there is a growing tide of sentiment which believes the weaker GDP numbers combined with the potential of less inflation could spark additional Federal Funds Rate cuts this calendar year. Outlook fueled by optimism regarding a more dovish Fed could be a factor in the markets the remainder of July.

6. Gold and Silver: Commodity prices are soaring as speculators pursue bullish trends. Gold finished this week above 2,410.00 USD. Silver is traversing above 30.00 USD per ounce for the first time since 2011 and 2012. These two metals are not always correlated, and day traders should remember Silver remains a rather easily mined commodity which sometimes influences downwards pressure because supply can be increased. Having said that, Gold and Silver have had solid bullish trends since February of this year.

5. Thaw: Bitcoin is near 60,000 as of this writing. The crypto winter has seemingly ended and many folks are standing in the sunlight and proclaiming long-term projections of Bitcoin as it maintains a higher price range. It should be remembered the most significant percentage of trading volumes within cryptos reside heavily within the top tier, and the ‘assets’ ranked lower remain in wagering cesspools. Cryptocurrency remains speculatively dangerous, and largely a place to move illicit cash with the perception the money can be kept ‘dark’.

4. USD/JPY: The Bank of Japan won last week’s game of fire. The U.S Consumer Price Index numbers dealt a blow to the blind fury of speculative buying in the USD/JPY, and there is also a belief among many that the BoJ added onto the selling momentum of the currency pair too with a well timed intervention. The currency pair which was near the 161.640 juncture suddenly dived to nearly 157.420. The USD/JPY has gone into this weekend near the 157.900 ratio. The USD/JPY saga is not finished yet, and froth via bullish endeavors remains dangerous. Day traders here have been warned.

3. China: Friday’s Trade Balance numbers were good, compared to the rather weak CPI results seen on the 10th of July which were negative. China’s Communist Central Committee begins a Plenary Session tomorrow until the 18th. Will they speak in platitudes? The USD/CNY has certainly seen a ‘soft’ devaluation since February of this year, but the currency pair did go into the weekend near the 7.2500 mark which is off the high of 7.2765 seen this past Thursday. China still must improve consumer sentiment domestically and this remains a difficult struggle as ramifications from the implosion in China housing values mires the landscape. GDP numbers will come from the nation on Monday.

2. Behavioral Sentiment: Equities and indices, Forex, and commodities are all experiencing risk appetite permutations. While it might be tempting for retail traders to bet on lower reversals of trends, sometimes its much easier to simply ride optimistic waves. Certainly there will be days when financial assets struggle, but the apex heights of the Dow Jones 30, S&P 500, Nasdaq 100 should be treated with respect. Treasury yields are at mid-term depths and appear ready to traverse lower.

1. Trump: The attempted assassination of Donald Trump on Saturday in Pennsylvania will galvanize his supporters and likely push many people towards voting for him November. The amount of vitriol Trump has endured from his political opponents including the highest echelons of the Democrats and many in the media needs to be contemplated and quieted. Opposition to political ideology is fine, but the use of hyperbolic musings has led the U.S to a dangerous place. It would be wise for pragmatic adults to rejoin political discourse. Traders should watch the financial markets early this week to see if the U.S political front causes a reaction.

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Risks: Powell and Inflation Data will Generate Market Reactions

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

Risks: Powell and Inflation Data will Generate Market Reactions

Traders returning to their desks after a long holiday weekend can see the USD has become weaker the past couple of sessions as behavioral sentiment has shown signs of shifting again. Yet the trends experienced in Forex have not been clear cut, this as questions and concerns regarding what governments and central banks are thinking remains problematic. Investors who take a long-term approach to the markets will likely have an easier time in the coming days because their comfort levels are set to different metrics compared to large traders and the retail crowd. Noise doesn’t effect investors as much as traders.

Politics clearly remain on the minds of many as President Joe Biden has his ability to effectively lead the U.S questioned with growing doubts. However, it is unlikely that there will be a change in the immediate future from the Democrats as they decide on a path regarding their nominee for the November Presidential election. Financial institutions would certainly react to a decision to eliminate Biden as a candidate, but the President remains steadfast that he will move forward. It is very conceivable that Biden may be forced to vacate against his wishes, but until then the broad markets will not react too much to worries about the White House. For the moment U.S politics remain hyperbole.

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EUR/USD Six Month Chart on the 9th of July 2024

France held its Parliamentary second round elections on Sunday, and while the votes have been counted, the results in many ways are not yet clear. Coalitions are being rumored and EUR/USD traders may react to the developments and within French bonds, but the murky political conditions within Paris remain hard to predict regarding outcome as a whirlwind of deal making takes place in an assortment of offices.

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S&P 500 One Year Chart on the 9th of July 2024

The lack of total volume last week in Forex and equity indices did not stop trends from being seen and technical perceptions being formed. U.S stocks remain highly valued and U.S Treasury yields have produced a downwards slope.

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USD/JPY Six Month Chart on the 9th of July 2024

Today will prove interesting as Jerome Powell and Janet Yellen speak in Washington D.C, later this week inflation data will certainly cause a stir. While Biden remains a concern, France tries to form a working government, and the Bank of Japan is being viewed with deep suspicion, day traders have reasons to monitor news, but they should also remember financial institutions have been positioning for potential sentiment shifts and may not react with volatility if their outlooks are confirmed.

This week of trading is laden with risk events, some of which are listed below, but speculators need to understand behavioral sentiment is showing signs of optimism within many financial assets, and the prevailing mood of financial institutions appears to be leaning towards risk appetite.

Monday, 8th of July, Japan Average Cash Earnings – real wages continued to fall via data reported yesterday. The USD/JPY is traversing dangerous heights and speculators are likely still testing their bullish perspectives even as the 161.000 sees values tested above. Traders should stay cautious and not bet wildly on more upside, but lower valued speculative viewpoints are also problematic for the time being. Simply put, beware of the BoJ as it looms in the shadows.

Tuesday, 9th of July, U.S Federal Reserve Chairman Powell – the central bank chief will testify before the Senate. U.S economic data has weakened via Gross Domestic Product, and Manufacturing and Services readings. However, inflation remains troublesome and Powell will have to speak about these issues in conjunction via his Monetary Policy Report. He will certainly try to sound cautious. If Powell hints at a potential rate cut in September this would spark USD selling. At the same time the Fed Chairman is talking, Treasury Secretary Yellen will be speaking to the House Financial Services Committee. Traders can be assured that Powell and Yellen will mirror each other. And Powell will speak to the House on Wednesday.

Wednesday, 10th of July, China CPI and PPI – the Consumer Price Index is expected to have a gain of 0.4%, while the Producer Price Index is anticipating a result of minus -0.8%. Deflation in China is a concern. Economic statistics continue to produce lackluster results, while this a partially due to the collapse of the real estate bubble in China, it also has to do with less demand for products from abroad as Europe and America suffer from economic declines too. The USD/CNY has produced a bullish trend since the start of 2024 and is traversing near 7.2714 as of this writing. Traders should look at the inflation reports and examine them for revisions downward in previous months.

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GBP/USD Six Month Chart on the 9th of July 2024

Thursday, 11th of July, U.K Gross Domestic Product – the newly elected Labour government will get their first taste of big economic data challenges as they now guide Britain. A lackluster gain of 0.2% is expected. While this may move the GBP/USD a bit based on the result, the currency pair will likely react more to the U.S inflation data later in the day. The July bounce higher in the GBP/USD has been healthy and value above the 1.28000 has provided bullish traders with some optimism.

Thursday, 11th of July, U.S Consumer Price Index – the core CPI report is projected to match last month’s number of 0.2%. If this result can be attained and the CPI annual data comes in with the anticipated 3.1% mark compared to last month’s figure of 3.3%, this could create dynamic bearish activity for the USD. However, traders should remain cautious and note that even though recent U.S economic data has tumbled, inflation reports have been stubborn. Betting on the outcome of these reports before they are published is akin to gambling for day traders.

Friday, 12th of July, U.S PPI and Preliminary University of Michigan Consumer Sentiment – the Producer Price Index reports are expecting slightly higher ratios. The Consumer Sentiment report should be looked at too, because the readings have been coming in weaker the past handful of months. If consumer behavioral sentiment is weaker the USD could sustain a negative stance.

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Forex Debate and Coming Impetus this Week for Speculators

by with No Comment AMT MarketsEconomic CalendarFeatured Highlights

Forex Debate and Coming Impetus this Week for Speculators

In many respects the broad markets feel as if they are waiting for big news and this may not be delivered as wanted. Yes, the debate between Biden and Trump this Thursday will get attention, but unless there is a major television moment the outcome is not likely going to give a final affirmation regarding the U.S election results in November. Some people may be counting on Biden to literally misstep, and for Trump to say something incredibly outlandish, but it is also possible the debate disappoints even as entertainment. Perhaps the Presidential debate will deliver sideways action like the broad markets have the past week, leaving us with a desire for more.

Financial institutions will look at U.S growth numbers this coming Thursday certainly, and also keep their eyes on the upcoming Sunday vote in France on the 30th which might prove rather remarkable. The EUR/USD is certainly back within its lower depths when a six month chart is inspected, and traders will react to France’s election this weekend, but it should be remembered the second and vital round of voting will not occur until the 7th of July. Until then, reactionary and precautionary results in the EUR/USD may produce headaches. The EUR does look oversold, but timeframes and the ability to hold a position may prove tough for short-term traders hoping for a wave of optimism to suddenly take hold and create a strong trend.

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EUR/USD Six Month Chart on the 25th of June 2024

Not to be outdone the U.K is gaining plenty of attention because of its election on the 4th of July, but in this case it seems more like a coronation for the Labour Party and only a question about how devastating the carnage will be for the Tories. Financial institutions may have already factored in their perceived outlooks regarding the U.K vote into the GBP/USD. The currency pair will certainly react to the British election results, but financial institutions may have less to fear regarding sudden volatility of the British Pound, compared to the EUR/USD which could still have days ahead when it doesn’t trade in a USD correlated manner due to E.U political unknowns.

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Monday, 24th of June, Germany Ifo Business Climate – the reading produced a drop to 88.6, missing the estimate of 89.4. Germany economic pressures remain negative and this may keep the idea alive that the ECB should be considering another interest rate cut. However, because the European Central Bank cut its Main Refinancing Rate recently and the U.S Fed continues to look rather neutral, it seems unlikely the ECB will decide to suddenly become the only proactive central bank around over the mid-term. Meaning, the ECB may stay conservative and want to wait on others to join the interest rate cut party, this before they create more unbalanced carry trade opportunities which could lower the value of the EUR/USD too much.

Tuesday, 25th of June, U.S CB Consumer Confidence – the reading will certainly be watched by investors, but will it create bedlam if there is surprise for equities or Forex? The likely answer is no. Behavioral sentiment has become flustered and shifted over the past handful of months, and this will create some caution no matter what today’s consumer reading says. Large financial institutions will probably stay geared to other upcoming data which will be considered more important.

Wednesday, 26th of June, U.S New Home Sales – a slight uptick in the amount of housing sales is expected. However, because of higher interest rates in the U.S via the cost of mortgages this number is likely to remain rather muted. For interested traders a look at the previous revisions of the New Home Sales data will prove interesting. The outcome of this reading should be treated with a bit of skepticism because it may be changed down the road. Unless there is a huge surprise the impact of this report may be rather calm, no matter what media narrative dictates.

Thursday, 27th of June, U.K Bank of England Governor – Andrew Bailey will speak about the Financial Stability Report. Bailey is certain to add some insights regarding the BoE’s neutral policy stance taken last week regarding interest rates, but more hints regarding potential cuts later this summer and possibly late this year again may be given. Economic data from the U.K remains troubling. The Bank of England may want to remain cautious because of inflation concerns, but financial institutions would like to see a more proactive dovish stance. Bailey might also talk about the potential affects from the U.K election, but he will have to be careful to make sure it doesn’t sound like he is taking a political side.

Thursday, 27th of June, U.S Gross Domestic Product and GDP Price Index – these two reports will impact the financial markets. The growth and inflation data will be examined by all financial institutions and generate trading reactions. The GDP growth number is expected to come at 1.4%, which is slightly higher than the previous report which posted a 1.3% result. Any number below 2.0% growth will be considered as lackluster by most financial analysts. Traders will then turn their attention to the inflation results which are supposed to match the 3.0% gain from the last Price Index report. If this number can somehow come in below expectations, this could propel some weakness in the USD. However, traders should be careful and remember U.S economic data the past handful of months has produced surprises which have created dangerous and choppy Forex conditions.

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USD/JPY Five Day Chart on the 25th of June 2024

Friday, 28th of June, Japan Tokyo Core CPI – a gain of 2.0% is anticipated. The USD/JPY should be watched carefully. Early this Monday the BoJ likely tried an intervention in the Japanese Yen, but the USD/JPY only had a momentary swift selloff. As of this writing (Tuesday the 25th of June) the USD/JPY is trading near the 159.345 ratio which is very high when historical comparisons are considered. If the inflation number comes in with a 2.0% result or higher this could set off fireworks in the USD/JPY. Financial institutions clearly believe the BoJ should raise their interest rate by at least 0.25%, but the Japanese government appears keen on trying to keep the Japanese Yen weak to help GDP via exports from the nation. The Bank of Japan needs to be given attention. Speculators and the BoJ are battling against each other.

Friday, 28th of June, U.S Core PCE Price Index – the Personal Consumer Expenditures inflation report is forecasted to produce a gain of only 0.1% compared to the previous result of 0.2%. If the PCE Price Index does turn in the anticipated result, and the GDP Price Index from Thursday met expectations or came in lower, this could cause more speculative selling of the USD. However, if the inflation results come in stronger than expected Forex traders could see bullish USD buying which again challenges sellers abruptly.

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Forex and Political Sentiment Moving the South African Rand

by with No Comment AMT MarketsBehavioral SentimentFeatured Highlights

Forex and Political Sentiment Moving the South African Rand

Recent trading in the USD/ZAR has become bearish and highlights the behavioral sentiment shifts taking place within South Africa, this as outlooks and perspectives create opportunities for financial institutions and speculators.

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USD/ZAR One Month Chart as of 20th June 2024

South Africa politics have generated optimistic selling of the USD/ZAR in the past week and a half as the ANC has agreed to a National Unity Government coalition. Financial institutions pulled the USD/ZAR higher and to the 19.00000 realm in the second week of June as concerns grew the African National Congress could decide on a hard-left coalition in the nervous days following the election results. But those fears disappeared when it became clear the ANC would actually undertake a working association with the Democratic Alliance. The USD/ZAR began to selloff. Yesterday’s ability to test values below the 18.00000 level highlight the price velocity that optimistic outlooks have generated the past handful of trading days. Not all of South Africa’s problems are going to vanish magically, but there is a hope that better days are ahead.

As simplistic as it sounds, financial institutions trade based on their outlooks and they take an approach with much longer timeframe considerations compared to day traders. In a sense the price of the USD/ZAR isn’t a reflection of what is, it is a mirror of what can be. The trend lower will now run into a test as financial institutions question the move lower that has been attained the past week and a half, compared to realities which still have to be handled per the existing problems that remain. The African National Congress and Democratic Alliance aren’t natural bedfellows. They will certainly clash regarding fiscal transparency, day to day power sharing as the nation and municipalities are managed, and geopolitical alliances will be questioned.

While the USD/ZAR has definitively traded lower and is testing intriguing support, optimistic sellers who have a mid-term outlook will look at one year charts and know the currency pair has traded at significantly lower values in July of 2023. Day traders should not get overly ambitious, because it will be nearly impossible for most short-term speculators to hold onto a position longer than a day or two because of transaction fees most trading platforms charge for overnight positions. However, the notion that financial institutions will look at the lower values seen technically about eleven months ago, and consider the potential of ‘what can be’ might start to affect the USD/ZAR more over the coming weeks and months.

There are warning signs that need to be monitored, there is already talk among media outlets in South Africa that the ANC and DA are in disagreement regarding the working relationship they share and what type of influence will be allowed from the junior partners – which includes the Democratic Alliance and at least four other smaller political parties. Nothing is for free in politics. Power and the ability to govern will need pragmatic approaches by all members of the National Unity Government in order for it to remain viable. The coming days and weeks are sure to create headlines which will make financial institutions occasionally nervous and create support levels which sometimes look very durable.

Perhaps the best barometer for short-term traders of the USD/ZAR will be resistance technically which is tested in the coming days. The USD/ZAR is trading near the 18.14200 ratio as of this writing. U.S traders will be returning from their holiday celebrations yesterday and increase Forex volumes which could cause uneasy reversals. However, if the 18.20000 level proves to be durable resistance near-term, it may signal financial institutions may believe additional positive impetus will create more selling. Behavioral sentiment will remain nervous in South Africa, but if optimistic outlooks remain the USD/ZAR could move lower again. The search for equilibrium in the USD/ZAR is not over and the coming weeks will be worth watching.