Sentiment analysis/trade plan 20 Dec 2016

By | December 20, 2016

USD – wage growth picking up, job market strongest in nearly a decade, bullish for USD, buy dips

AUD – can’t cut rates for it would carry risk that extra debt would outweigh additional economic benefits, domestic data not encouraging, but cannot do fiscal policy for fear of losing AAA.

           So it is a buy, or neutral for AUD

JPY – holding yields low despite rising yields,

Improved economic outlook, but continue to maintain monetary base expansion until 2% inflation target

So sell yen

GBP – PM may said it could cover EU funding after leaving EU, also lowering the risk of a scottish referendum, as they want to keep access to the single market.

Buy dips

EUR – sell rallies on accomodative stance

CAD – buy dips, no change in news saying there is excess supply from oil, or signs of non compliance

US economy doing well, wage growth picking up, job market strong.

Summary

USD buy

AUD sell

JPY sell

GBP buy

EUR sell

CAD buy

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