Closed EURUSD long position near opening, as I have mixed feelings about the Fed meeting on Wednesday. August slowdown in inflation is a big concerns but chances are it can be transitory (based on seasonal quirk maybe).
The eyes are on Fed forecast about hiking path especially it's chances to exceed neutral level (featured with not expanding nor contracting economy). Not only to exceed but the time it can stay above long-run equilibrium.
Stock market is also sensible point of concern as dividend yields start to stall, capital gains slowdown - attention can be turned to Treasury bonds and Money Market assets which start to deliver good return. Just compare div. yields after inflation vs. yield on bonds. This bodes well for American currency.
Housing market extends slump, but this this issue has been haunting US growth all this year. Mortgage rates certainly weigh on decisions.
Emerging markets advance since the start of September.
EURUSD lost growth momentum this week.. but not because dollar is strong, but because Italy weighs on Euro. Sooner or later EU and Italy government wills strike the deal on spending plan, and euro bulls wait for these news. And I wait too..
EURUSD buy 1.150 - 1.1570, Going to place it somewhere at 1.1550
Markets admit today that Powell was extremely bullish, with bond sell-off spreading across the market. But well we have BoJ with yield targeting at 0 pct, while 10YR JGB yield advanced to 0.16. Still no action from BoJ but waiting for announcement of "unlimited bond buying" in order to clamp down the rout.
Ok the last trade was a mistake, since dollar started to appreciate sharply. But I caught the move on XAUUSD as you can see this in my last trade. I missed big time since it plunged to 1182 but then recovered, leaving me only with 120 dollars profit.
Now with China going stimulus hard I would consider selling gold further as triggered stops near 1180, clear path for more downward movement.
I would really like to enter somewhere above 1190, maybe 1195 but lets wait.
