InvestMacro

By TheTechnicalTraders.com

With less than 24 hours to go before the US Fed rate decision announcement, all eyes are watching how the US stock market is reacting to the possibility of a rate cut (25 basis point) that has been telegraphed by the US fed many weeks in advance. Almost as if the US stock market is moving against all odds, the S&P and NASDAQ have pushed higher into new all-time high territory while the Dow Jones index currently trades just below recent highs.  What should traders expect with the Fed announcement and beyond?

Probability of Rate Cut Percent

First, we need to understand the global markets have already priced a 25 basis point rate decrease into the markets based on expectations.  The CME Fed expectations data suggests the market is 78.1% confident that a 25 basis point rate decrease will happen.

Source (CME)

This suggests that global traders are already prepared for this move and we may not see much volatility if the US Fed does not surprise anyone with their language/future expectations.

We believe the US Fed is taking this rate decrease to ease the supply of US Dollars throughout the world.  Over the past 18+ months, the strength of the US Dollar has prompted a shift away from weaker global economies and into the US equities market, US Treasuries and the US Dollar.  We believe this shift is reaching a critical moment in time where the fragility of the foreign markets has reached a tipping point.

Weekly US Dollar chart

You can see from this Weekly US Dollar chart that the rally from the bottom in early 2018 has been tremendous – +11.25% and climbing.  While this US Dollar rally has taken place, many foreign currencies have continued to weaken while the global economy has recently slowed to a crawl.  As long as the US Dollar stays within the magenta price channel moving forward, we expect this trend to continue.

The shift in how capital is being deployed and the stress that continues throughout the globe with regards to economic activity and output is related to something that we believe took place back in 2007 through 2016 – the global effort to support a very weak global economy.

We highlighted some of our thoughts in this recent research post about the black hold in global banking.

Overall, we believe the actions by the global central banks and the US Fed from 2007 till 2016 created a “setup” in the global markets that very few people foresaw or understood.  This shift happened at a pace and fever that few people could comprehend and came to a head in November 2016 when President Trump was elected.  We believe it happened somewhat like this…

2004~2006: Greenspan raises rates on an unprecedented scale (over 450%) pushing the US/global banking/credit sector into crisis in 2007-08

2008~2010: As the biggest global banking/credit crisis unfolds, the US Fed and global central banks do everything possible to save the world from decades of economic malaise and destruction.  US Fed lowers interest rates to near ZERO creating a run on US dollar debt/credit.

The Current Market Setup

2011~2015: As foreign market engages in debt/credit expansion, infrastructure projects and an “easy money” rally mode, something begins to change in 2014~2015.  China realizes the nation’s wealth is being exported to the US and other markets as well as a US stock market rotation that shocked the global investors.

2016~2017: The US Elections (2016) took the focus away from the global markets for a period of 15+ months and allowed the easy US Dollar trading activities to continue into hyperspace.  This is when many foreign nations/companies took huge risks leveraging debt and success into future debt/risks based on a belief that “this success will never end”.

Then This Happened…

January 2017: President Trump is sworn in and the US Fed begins raising rates aggressively.  The disruption that resulted from this 2017 combination event resulting in one of the largest “global unwinding” processes we’ve seen in quite a while and it has really only just begun.

The downward rotation in the US Dollar in early 2017 as a result of uncertainty in US policy and perceived strength in foreign markets as US interest rates were still relatively low – under 1.4% most of that time.  After US FFR rates crossed above the 1.75% level, the easy US Dollar carry trade became much more difficult to maintain and foreign investors had already setup trillions in debts expecting the US Fed to maintain easy money policies for decades.

Source: https://fred.stlouisfed.org/series/EFFR

What is the US Fed expected to do at this time?  Either they lower the FFR so that the global markets can continue to run their credit/debt functions and attempt to deleverage the “setup” over the next 5+ years or the US Fed risks creating a run-away train type of scenario where foreign central banks lack the ammo to support their own economies and the US Fed risks creating hyper-inflation by not acting accordingly.  In short, the US Fed to the global bankers rescues again.

Well, here we go with the US Fed setting the policy and expectations for the future as this incredible 1800% FFR rate increase has pushed the global markets into potential turmoil.  We’ll complete our research in the second half of this research post in a few hours stay tuned!

CRUCIAL WARNING SIGNS ABOUT GOLD, SILVER, MINERS, And S&P 500

In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here.

I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here.

On June 26^th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis.

More recently on July 16^th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts.

CONCLUDING THOUGHTS:

In short, you should be starting to get a feel of where each commodity and asset class is headed for the next 8+ months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter.

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.  You won’t want to miss this big move, folks.  As you can see from our research, everything has been setting up for this move for many months.

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.

FREE GOLD OR SILVER WITH MEMBERSHIP!

Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis!

Chris Vermeulen –  TheTechnicalTraders.com

By Alpari.com

By Alpari.com

By Admiral Markets

Source: Economic Events 31 July 2019 – Admiral Markets’ Forex Calendar

Today, we want to focus on the FED rate decision and its potential impact on Gold.

After the short push to new yearly highs in Gold after the comments from NY president Williams, which resulted in a spike in market expectations of a 50 basis point cut, these expectations stabilised over the past few days with markets currently expecting a 25 basis point rate cut from the FED.

What’s potentially interesting now is that the market seems to have nearly completely priced in any dovish remarks and speculation around monetary stimulus from the US central bank.

With that in mind, the upside potential in the yellow metal seems limited, having already priced out the chances of four rate cuts in 2019 (which currently ranks at slightly below 20% according to the FED Watch Tool), especially if the upcoming US economy data sets on Thursday (ISM Manufacturing) and Friday (Non-Farm Payrolls) report any positive data.

That said, price action wise, chances seem high that Gold will see a stint towards and probably below 1,400 USD with a first target around 1,380 USD.

But even if we break below 1,380 USD in the second half of the trading week, we maintain our mid-term bullish Gold bias and consider the region around 1,360/365 as a potential mid-term long-trigger with a first target to be found around 1,480/490 USD.

Source: Admiral Markets MT5 with MT5SE Add-on Gold Daily chart (between 25 April 2018 to 30 July 2019). Accessed: 30 July 2019 at 10:00 PM GMT

Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016 it increased by 8.1%, in 2017 it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
9. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

By Admiral Markets

By George Prior

The pummelled pound is going to continue to be battered either way in the short to medium-term under Boris Johnson or Jeremy Corbyn, says the CEO of one of the world’s leading financial advisory organizations.

Nigel Green, the founder and chief executive is speaking out after sterling dropped more than 4 per cent on Tuesday in its worst month since October 2016 on an increasing probability of the UK leaving the EU on 31 October in a no-deal Brexit.

Mr Green comments: “The British pound is now the second-worst performing currency in the entire world.

“There is no end in sight to the embattled British pound’s plight with both the current Prime Minister Boris Johnson and the leader of the official opposition Labour Leader Jeremy Corbyn promoting policies that will deliver fresh – and serious – blows to the currency.”

He continues: “Mr Johnson is ramping up no-deal preparations and it looks increasingly likely the UK crashes out of the EU in a no-deal scenario in October.  Even though this has largely been priced-in by the markets, there can be no doubt that it has also intensified uncertainty and, in response, the already weak pound fell and continues to flounder.

“We can expect this to continue as the Johnsons administration takes brinkmanship with the EU to a higher level, the closer we get to the Brexit deadline.

“Should the UK leave with no-deal, the pound can be expected to remain weak for several years until the country and the bloc readjusts.”

Mr Green goes on to add: “In addition, many observers predict that there will be a general election before the end of the year. All by itself this too will create uncertainty and therefore turbulence for sterling.

“But should a Corbyn-led Labour party win that election, there will be even more bad news for the pound.

“His anti-business rhetoric, and high tax and low-profit policies would lead to considerable and sustained selling of the pound.”

Last month, Nigel Green noted: “During the past two years, the pound has been battered when it comes to its price against other currencies.

“The significant drop in the value of the pound has contributed to reducing people’s purchasing power and a drop in UK living standards. Weaker sterling means imports are more expensive, with rising prices being passed on to consumers.

“The fall in the pound is good for exports some claim, but it must be remembered that around 50 per cent of UK exports rely on imported components. These will become more expensive as the pound falls in value.

“A low pound is, of course, bad news for British holidaymakers and travellers abroad – with trips to Europe and the U.S. increasingly expensive.  Even destinations such as Dubai and China are more expensive as their currencies are pegged to the U.S. dollar.

“Arguably, the key issue for the UK, however, is that one of its biggest and most important sectors, financial services, will suffer from another knock to the pound. It will be hit because it is built on foreign investment that puts its faith in a strong pound.”

The deVere Group CEO concludes: “Whatever happens now, the already battered British pound is set for more punishment under either Johnson or Corbyn.

“As such, we can expect to see a surge in domestic and international investors in UK assets considering the international options available to them in order to build and safeguard their wealth.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Article By RoboForex.com

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.6898; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6920 and then resume moving downwards to reach 0.6840. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be cancelled if the price breaks the cloud’s upside border and fixes above 0.6935. In this case, the pair may continue growing towards 0.7005. After breaking the rising channel’s downside border and fixing below 0.6870, the price may continue moving downwards.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6626; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 0.6635 and then resume moving downwards to reach 0.6545. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be cancelled if the price breaks the cloud’s upside border and fixes above 0.6670. In this case, the pair may continue growing towards 0.6725.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3171; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.3150 and then resume moving upwards to reach 1.3245. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be cancelled if the price breaks the cloud’s downside border and fixes below 1.3075. In this case, the pair may continue falling towards 1.3005.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By TheTechnicalTraders.com

Our Adaptive Dynamic Learning (ADL) predictive modeling system is predicting that Crude Oil will break recent support levels near $55 and move very quickly down to levels near $50 to $51 before August 2^nd, 2019.  The move to near the $50 price level is likely to be a 100% measured Fibonacci price extension related to the initial downside move from $61 to $55 earlier in July 2019.

After this new downside move completes, we expect Crude Oil will form a short-term price base just above $50 that may last many days or weeks.  Our earlier analysis of Oil called this move and we outline our future oil expectations.  For more information about this call, please review the following research posts.

This Daily Crude Oil chart highlights the next downside price move that we are expecting will take place over the next 4 to 7 days.  After the $50 to $51 lows are reached, Oil should base near these levels and begin a moderate upside move back to levels above $54.  This move aligns perfectly with our earlier analysis and research and strongly suggests that oil will target a sub-$40 price level in the near future.

What does this mean for investors and traders?  It means that our ADL predictive modeling system is accurately calling these moves in oil and that the sub $40 price expectations could reflect a decrease in global economic expectations over the next 6+ months.  For oil to continue to fall to levels below $40, demand would have to wane or supply would have to increase globally – or both.  Additionally, it would likely indicate that global expectation for the future demand for oil would be far lower than previously expected.  A commodity price collapse, like this, could be an early warning sign that the global economy is slowing much faster than many expect or it could be a sign that the fundamentals in the oil market are shifting as the economy is slowing.

Either way, it appears we are headed for sub $40 price levels in oil later this year.

CRUCIAL WARNING SIGNS ABOUT GOLD, MINERS, SILVER, SP500

In early June I posted a detailed video explaining in showing the bottoming formation and gold and where to spot the breakout level, I also talked about crude oil reaching it upside target after a double bottom, and I called short term top in the SP 500 index. This was one of my premarket videos for members it gives you a good taste of what you can expect each and every morning before the Opening Bell. Watch Video Here.

I then posted a detailed report talking about where the next bull and bear markets are and how to identify them. This report focused mainly on the SP 500 index and the gold miners index. My charts compared the 2008 market top and bear market along with the 2019 market prices today. See Comparison Charts Here.

On June 26^th I posted that silver was likely to pause for a week or two before it took another run up on June 26. This played out perfectly as well and silver is now head up to our first key price target of $17. See Silver Price Cycle and Analysis.

More recently on July 16^th, I warned that the next financial crisis (bear market) was scary close, possibly just a couple weeks away. The charts I posted will make you really start to worry. See Scary Bear Market Setup Charts.

CONCLUDING THOUGHTS:

In short, you should be starting to get a feel of where each commodity and asset class is headed for the next 8+ months. The next step is knowing when and what to buy and sell as these turning points take place, and this is the hard part. If you want someone to guide you through the next 12-24 months complete with detailed market analysis and trade alerts (entry, targets and exit price levels) join my ETF Trading Newsletter.

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our  Wealth Building & Global Financial Reset Newsletter.  You won’t want to miss this big move, folks.  As you can see from our research, everything has been setting up for this move for many months.

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities starting to present themselves will be life-changing if handled properly.

FREE GOLD OR SILVER WITH MEMBERSHIP!

Kill two birds with one stone and subscribe for two years to get your FREE PRECIOUS METAL and get enough trades to profit through the next metals bull market and financial crisis!

Chris Vermeulen – TheTechnicalTraders.com

Article By RoboForex.com

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD is testing the horizontal support line and forming several reversal patterns, including Hammer. At the moment, we may assume that the price may rebound and reverse to continue forming the descending channel towards 1.1200. However, one shouldn’t exclude a possibility that the price may break the support level and continue falling towards 1.1070.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns close to the resistance line, including Shooting Star. Right now, the pair is reversing. Judging by the previous movements, it may be assumed that after testing the channel’s upside border the price may resume trading downwards to reach 108.00. However, we shouldn’t ignore a possibility that the instrument may break the resistance line, update its highs, and continue its growth to reach 109.50.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.11238
• Open: 1.11448
• % chg. over the last day: +0.12
• Day’s range: 1.11328– 1.11471
• 52 wk range: 1.1111 – 1.2009

EUR/USD has stabilized after a long fall. At the moment, the trading instrument is consolidating. There is no defined trend. Local levels of support and resistance are 1.11200 and 1.11500. Financial market participants are waiting for the Fed meeting. Tomorrow the regulator will announce its decision on the key interest rate. Today, investors will evaluate a number of important economic releases from the United States. We recommend to open positions from key levels.

The Economic News Feed for 30.07.2019:

• – Personal Income (MoM) (Jun) (US) – 15:30 (GMT+3:00);
• – CB Consumer Confidence (Jul) (US) – 17:00 (GMT+3:00);
• – Pending Home Sales Index (Jun) (US) – 17:00 (GMT+3:00);

Indicators do not give accurate signals: the price crossed 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.11200, 1.11000
• Resistance levels: 1.11500, 1.11850, 1.12100

If the price consolidates above 1.11500, expect further recovery toward 1.11800-1.12000.

Alternatively, the price will descend toward 1.11000-1.10800.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.23748
• Open: 1.22147
• % chg. over the last day: -1.28
• Day’s range: 1.21182 – 1.22258
• 52 wk range: 1.2118 – 1.3385

GBP is still under pressure due to the growing risks of “tough” Brexit. There are aggressive sales on the GBP/USD currency pair. During yesterday’s and today’s trading, the drop in quotes exceeded 230 points. The trading instrument reached two-year lows. At the moment, the key support and resistance levels are: 1.21200 and 1.22000, respectively. We do not exclude a further decline in the GBP/USD currency pair. We recommend to keep track of current information on the issue of Brexit. Positions must be opened from key levels.

Publication of important economic reports from the UK is not planned.

Indicators signal the strength of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell GBP/USD.

The Stochastic Oscillator is in the oversold zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.21200, 1.20500
• Resistance levels: 1.22000, 1.22650, 1.23000

If the price consolidates below 1.21200, expect further decline toward 1.20800-1.20600.

Alternatively, he price may correct toward 1.22500-1.22700.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.31650
• Open: 1.31634
• % chg. over the last day: -0.03
• Day’s range: 1.31560 – 1.31772
• 52 wk range: 1.2727 – 1.3664

CAD has stabilized after a rather long growth. At the moment, the USD/CAD currency pair is trading in a flat. Local levels of support and resistance are: 1.31500 and 1.31800, respectively. Financial market participants expect additional drivers. Today we recommend to pay attention to economic reports from the USA. Trading instrument has the potential for further growth. Positions must be opened from key levels.

The Economic News Feed for 30.07.2019 is calm.

Indicators do not give accurate signals: the price crossed 50 MA and 100 MA.

The MACD histogram is located near the 0 mark.

The Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.31500, 1.31200, 1.30900
• Resistance levels: 1.31800, 1.32000

If the price consolidates above 1.31800, expect further growthto 1.32200-1.32400.

Alternatively, the price could drop toward 1.31250-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 108.629
• Open: 108.779
• % chg. over the last day: +0.20
• Day’s range: 108.562 – 108.947
• 52 wk range: 104.97 – 114.56

An ambiguous technical picture emerged on the USD/JPY currency pair. The trading instrument is in lateral movement. Currently, the local support and resistance levels are 108.550 and 108.900, respectively. The Bank of Japan, as expected, kept the main parameters of monetary policy at the same level. The regulator has worsened forecasts for the growth of GDP and consumer prices for the current fiscal year. Open positions from the key levels and pay attention to the releases in the US.

The Economic News Feed for 30.07.2019 is calm.

Indicators do not give accurate signals: the price crossed 50 MA and 100 MA.

The MACD histogram is located near the 0 mark.

The Stochastic Oscillator is in the oversold zone, the% K line crossed the% D line. There are no signals at the moment.

Trading recommendations

• Support levels: 108.550, 108.250, 108.000
• Resistance levels: 108.900, 109.250

If the price consolidates below 108.550, the price will fall to 108.250-108.000.

Alternatively, the price will grow toward 109.200-109.300.

by JustForex

by JustForex

The US dollar has updated two-month highs in expectation of the Fed meeting. The US dollar index (#DX) closed in the green zone (+0.05%). Investors have taken a wait-and-see attitude before the Fed’s decision on a key interest rate. According to experts, the regulator will reduce the interest rate by 25 basis points – from 2.50% to 2.25% per annum. However, yesterday, US President, Donald Trump, wrote on his Twitter that a small rate cut would not be enough. The President criticized and raised pressure on the US Central Bank again, having accused it of being too cautious compared to China and Europe.

The British pound has updated two-year lows due to concerns about no-deal Brexit. Michael Gove, an official in the new British government, said it was highly likely that the UK would exit from the EU on October 31 without a deal that could cushion the blow to the country’s economy. However, British Prime Minister, Boris Johnson, has repeatedly said that there was only one chance out of a million that Britain would leave the EU without a deal. At the same time, there is no time for new talks before Brexit.

The Japanese yen shows a variety of trends after the meeting of the Bank of Japan. Following the meeting, the Central Bank of Japan left the key marks of monetary policy at the same level. However, the regulator has worsened forecasts for economic growth and consumer prices in the country. The Bank of Japan will also be ready to take decisive measures to support the economy in case of significant risks.

The bullish sentiment prevails in the “black gold” market. At the moment, futures for the WTI crude oil are testing the mark of $57.40 per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.18%), #DIA (+0.10%), #QQQ (-0.34%).

The 10-year US government bonds yield fell slightly. Currently, the indicator is at the level of 2.05-2.06%.

– Personal spending in the US at 15:30 (GMT+3:00);
– CB consumer confidence index in the US at 17:00 (GMT+3:00);
– Pending home sales index in the US at 17:00 (GMT+3:00).

by JustForex

By George Prior

The Boris and Brexit-battered British pound is drastically hitting the spending power of British holidaymakers around the world for the fourth summer in a row – but there are ways to reduce the pain of the weak pound.

This is the message of Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organizations, as the pound slid to a fresh two-year low on Monday as no-deal Brexit preparations are ramped up.

Shortly after the 2016 Brexit referendum, Mr Green launched deVere Vault an innovative global currency app and multi-currency prepaid card.

He notes: “For the fourth consecutive summer, millions of British holidaymakers are finding their spending power is negatively impacted by the beleaguered, Brexit-battered pound.

“The pound has been fallen against the euro every year since the referendum – it is now worth around 15 per cent less than before the vote.  Sterling continues to flounder since the record-breaking slide versus the single currency began in early May, hitting a two-year low on Monday.

“It’s not just those visiting the eurozone who are in for a shock either.  Overall, the pound is the worst-performing major currency in the last three months, meaning almost every destination is now more expensive than it was for Brits.”

He continues: “With no relief in sight for the pummelled pound, with buying power cut again for those going abroad for their summer getaway, it’s time to get savvy.

“One of the best way to reduce the impact is to be prepared ahead of your trip by having a prepaid multicurrency card that automatically pays in the local currency of your holiday destination. This allows you to avoid those transaction fees of, typically, 6-10 per cent – when spending abroad on a credit or debit card.

“Travellers should also try to avoid going to an ATM when overseas as they are likely to incur hefty costs for doing so.  It is better to buy the foreign currency in the UK or use that prepaid multicurrency card to withdraw rather than your UK bank card.”

Mr Green concludes: “Brexit has been a hammer-blow to the pound and this has been exacerbated by Boris Johnson becoming Prime Minister.

“As such, demand for solutions to the weak pound is set to soar by UK travellers and expatriates over the summer as sentiment towards sterling remains dismal due to an increasing probability of a Boris-driven no-deal Brexit.

“While much of the impact of no-deal will have been priced-in, it’s clear that holidaymakers do need to seek alternative ways to reduce the hit to their pockets of a poor performing pound.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.