U.S. Dollar – Three Factors Signaling Major Top
Last week, the U.S. Dollar closed lower against a basket of the currencies. However, it wasn’t an ordinary weakness, it was a technical closing price reversal top, which means the selling was serious. If confirmed this week, we could see the start of a two to three-week correction. Furthermore, ifRead More
Historical Analysis of Italy and Its Relations with the EU
History of the European UnionThe origins of the European Union can be traced to the period after WW2, with the main driver being the achievement and preservation of peace. The post-war period was particularly difficult – with Europe being badly damaged after two world wars – and as a result,Read More
Are We Going to See Another Financial Crisis in the Coming Years?
It has been a decade since the last major financial crisis swept across the world, ruining economies and forcing major (yet necessary) changes in the global financial system. It is fair to say that many of the countries which were struck down by this pandemic have not yet recovered fully,Read More
How Can the US Midterm Election Impact the Financial Markets?
With the US midterm elections just a few days away, it’s worth thinking about what they could mean for global markets. If the polls have it right, the Democrats will take the House quite comfortably, while the Senate will remain in the hands of Republicans.If that is the case, forRead More
Stock Market Whipsaw: Trust Kudlow, Not Unnamed Sources
The major U.S. equity indexes posted volatile two-sided trades on Friday as investors reacted to an optimistic report from Bloomberg over a possible trade deal between the United States and China and pessimistic response from his chief economic advisor Larry Kudlow. Sandwiched in between was a stellar U.S. Non-Farm PayrollsRead More
What Happens if the Yuan Breaks the Magical 7?
China At Risk of Massive Capital Outflows On Yuan Breaching Magical 7 LevelThe Chinese Yuan is yet again on the receiving end, amidst growing concerns of potential repercussion on it breaching the magical 7 level against the dollar. The last time the Yuan was at this level was in 2008.Read More
The Fed vs Trump: The Battle is On
US President, Donald Trump has become increasingly critical of the US Central Bank in the last 6 months. Last week he went as far as to say the Fed had ‘gone crazy’ and was ‘out of control.’ The Federal Funds Target range is now 2 to 2.25%, still close toRead More
How to Trade the Trade War?
The developing trade war between the US and China has created turmoil in emerging markets, most noticeably in the form of a sell-off of the Chinese stock market and currency.Trading the trade war is not very straightforward. Firstly, we really don’t know how it will end. It will probably beRead More
The Big Short – Is It Coming Now?
It’s been a particularly interesting few weeks that culminated in some particularly newsworthy events over the last week with the choppy waters being the beginnings of a storm that has been brewing since Trump’s November 2016 Presidential Election victory.For the market, analysts looking for key drivers over the near-term thatRead More
Here’s What You Need to Know About the USMCA Agreement
After a particularly long period of negotiations, the NAFTA agreement between the U.S, Mexico, and Canada morphed into the USMCA, the US Mexico Canada agreement. The renaming of the agreement considered a reflection of the U.S administration’s desire to bring to an end the concept of a North America freeRead More
Here’s Why You Should Follow the Italian/German Bond Yield Gap?
Despite narrowing in the last few days, the spread between the yield on German and Italian bonds remains at its highest levels since early 2013. The spread narrowed to 282 bps from 306 two days earlier as risk appetite returned to markets.Italy’s 10-year bonds now yield 3.63%, just 1.02% belowRead More
SP500 Index Changing Drastically
The beginning of October brings with it the biggest changes to the SP500 index since 1999. Some sectors and industries will most likely emerge, and some may disappear, with their respective weight in the index changing as well. Additionally, some stocks may move to other sectors. These changes may mostlyRead More
A Decade After the 2008 Financial Crisis: What has Changed? What has Remained the Same?
The 2007-08 financial crisis was an event that undeniably had a major impact on the global economy. The crisis, which is believed to have been largely triggered by poor debt-keeping and dangerous mortgage practices, unleashed a tremendous series of rippling effects that affected both the world’s largest financial institutes asRead More
USD/CNY – Trump Era Wakes Up a Sleeping Giant
The Yuan has historically been a managed rather than floating currency, which has resulted in traders largely ignoring the USDCNY pair. However, China’s importance within the global economy and the current trade war may introduce a new period for the currency.The Trump Era When Trump was on the campaign trail, heRead More
Can Donald Trump Be Impeached?
Last week, in the space of a few hours, Donald Trump’s former attorney Michael Cohen and ex-campaign manager Paul Manafort were found guilty by courts in New York and Virginia of a range of crimes. In addition, two longtime Trump associates, Allen Weisselberg and David Pecker have been given immunityRead More
Did Powell Put Stocks Back Inside A Bubble?
U.S. equity indexes continue to climb early Tuesday. Underpinning the markets are near historically low interest rates and corporate earnings growth. Yes, despite seven gradual rate hikes since December 2015, interest rates are low and that is driving investors into stocks because they are still the best investment.Looking at theRead More
What’s Next for Iran, the Iranian Rial and the Ayatollah?
As U.S mid-term elections approach, the U.S President has been a particularly busy one by historical standards. The trade war with China, an apparent denuclearization agreement with North Korea, an about turn on relations with Russia, trade renegotiations with the EU, ongoing talks with Mexico and Canada and fresh sanctionsRead More
Global Funds in FAANGs Today, BANNGs Tomorrow?
BANNG = Barrick Gold, Agnico Eagle, Newmont Mining, Newcrest Mining, and Goldcorp. They are the collection of gold stocks that would appear in all the major gold stocks ETFs, major indices in their respective countries. They have the liquidity, market cap, dividends, along with being the group of some ofRead More
How Serious is the World’s Water Scarcity Crisis?
According to recent estimates, more than 1.2 billion (roughly 1 in 6) people currently do not have access to clean drinking water. Throughout the course of the year, at least 2.8 billion people will experience water shortages to some degree. If a future global water crisis is something that weRead More
Turkey and Erdogan under Pressure as the Turkish Economy Crumbles
It’s been a torrid time for a number of emerging economies, as the U.S President goes down his list of must-dos and, while the early days of the U.S Presidency saw North Korea, Iran, and China grab most of the headlines, Turkey has not been left unscathed.The threat of U.SRead More