{"id":98257,"date":"2016-11-17T06:49:59","date_gmt":"2016-11-17T11:49:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=98257"},"modified":"2016-11-17T06:49:59","modified_gmt":"2016-11-17T11:49:59","slug":"trump-fuelled-rally-stalled-as-yellen-takes-the-hot-seat","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/11\/trump-fuelled-rally-stalled-as-yellen-takes-the-hot-seat\/","title":{"rendered":"Trump fuelled rally stalled as Yellen takes the hot seat"},"content":{"rendered":"
November 17, 2016<\/div>
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Article by ForexTime<\/a><\/p>\n

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After a robust surge in U.S. financial, industrial, and health care stocks post the U.S. elections sent the Dow Jones industrial average to new record highs, the rally lost momentum on Wednesday as investors took a breather, and Trump\u2019s effect started showing signs of waning. Asian stocks were mixed today, while European stocks also looked choppy as trading kicked off.<\/p>\n

The dollar strength made most of the headlines yesterday as the index rose to 13-year high, and investors are questioning whether the greenback still has room to move higher on the short run. I think the answer lies in Janet Yellen\u2019s testimony before the Joint Economic Committee later today. Most Fed officials are in favor of 25 basis points hike in December, and markets are almost certain that the Fed will pull the trigger in their next meeting, so a December rate hike is already priced into the dollar. Markets are more interested in Yellen\u2019s view on the economic effects of Trump\u2019s proposed fiscal policies, which include aggressive infrastructure spending and tax cuts. Maybe she will avoid commenting on many of the questions related to Trump\u2019s expected plans but if she indicates that aggressive fiscal policies mean tighter monetary policy than the dollar rally still has room to continue.<\/p>\n

Yellen\u2019s testimony will be followed by comments from Fed President Dudley and U.S. CPI figures.<\/p>\n

Bond markets also stabilised yesterday after yields on U.S. 10-year treasuries surged by more than 50 basis points from last week\u2019s lows, suggesting that fixed income markets have moved enough and it\u2019s time to see some consolidation after global bonds saw approximately $1.5 trillion\u00a0being wiped from their value.<\/p>\n

Oil prices are falling for the second consecutive day as crude inventories in the U.S. rose by 5.3 million barrels in the week ending Nov-11. I think in the next couple of days, fundamental data will be ignored and all focus will shift back into OPEC. There\u2019s some optimism that members of the organisation including Russia will reach an agreement on Nov-30 and this explains why we didn\u2019t see a steep selloff after U.S. inventories data. However, tomorrow\u2019s expected meeting on the sidelines of Doha\u2019s Gas Exporting Counties Forum will provide some insight on whether the members are really becoming united or more divided ahead of Nov-30 official OPEC meeting in Vienna.<\/p>\n

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

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime After a robust surge in U.S. financial, industrial, and health care stocks post the U.S. elections sent the Dow Jones industrial average to new record highs, the rally lost momentum on Wednesday as investors took a breather, and Trump\u2019s effect started showing signs of waning. Asian stocks were mixed today, while European […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-98257","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/98257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=98257"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/98257\/revisions"}],"predecessor-version":[{"id":98268,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/98257\/revisions\/98268"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=98257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=98257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=98257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}