Good Morning my friends
Some thoughts and food for the brain
Technical: The EUR/USD created a bullish outside candle yesterday, A bullish reversal would be confirmed only if the follow-through is positive, and for this we need to close today above 1.1388 (high of yesterday's bullish outside-day).
Fundy: Yesterday FED chair said, "Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy." Meaning FED is very close to neutralization. This contrasts sharply with the view of his early October’s one, when Powell said, "We may go past neutral, but we're a long way from neutral at this point, probably." I think this kind of speech kinda neutralized his October’s hawkish comments which is why Dollar got weaken yesterday, in line with that both 2- & 10-Years US Yield lost ground as well. Plus, Market could start pricing only one rate hike in 2019 instead of three which would be surely EU positive if ECB stays on its current path and committed to hike in late 2019.
NB: Todays EU data is very important for the Bulls,
Happy Trading.
Some thoughts and food for the brain
Technical: The EUR/USD created a bullish outside candle yesterday, A bullish reversal would be confirmed only if the follow-through is positive, and for this we need to close today above 1.1388 (high of yesterday's bullish outside-day).
Fundy: Yesterday FED chair said, "Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy." Meaning FED is very close to neutralization. This contrasts sharply with the view of his early October’s one, when Powell said, "We may go past neutral, but we're a long way from neutral at this point, probably." I think this kind of speech kinda neutralized his October’s hawkish comments which is why Dollar got weaken yesterday, in line with that both 2- & 10-Years US Yield lost ground as well. Plus, Market could start pricing only one rate hike in 2019 instead of three which would be surely EU positive if ECB stays on its current path and committed to hike in late 2019.
NB: Todays EU data is very important for the Bulls,
Happy Trading.
Trades on fundamentals that enforce technical moves
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