New orders for key U.S.-made capital goods unexpectedly fell amid declining demand for machinery and primary metals, pointing to a sustained slowdown in business spending on equipment that could further crimp economic growth. The economy’s outlook was also dimmed by other reports on Thursday showing a measure of factory activity in the mid-Atlantic region contracted in February for the first time since May 2016 and home resales plunging to a more than three-year low in January. The reports, together with data last week showing steep declines...
When it comes to international transactions, the US Dollar is one of the most used currencies and one of the world’s primary reserves. It may surprise people that the US dollar was adopted by many countries as the official currency or even unofficially, as an additional currency to their local currency. The globalization of the US Dollar followed World War II when the Bretton Woods system was initiated. The US Federal Reserve has always supported the dollar's role as the leader of the world's currencies and provided sufficient...
Forex traders received another healthy dose of global PMI reports which spanned from Australian through the Eurozone into the US. The trend which started in 2018 continued as more and more global PMI reports come in below expectations. This all points towards a steeper economic slowdown than many analysts and economists anticipated. A lot of traders have not fully priced in the effects of this slowdown. Central banks are likely to turn more dovish and follow the US Fed 180 degree policy change which will have ripple effects across the global...
The Federal Reserve on Wednesday signaled that it could soon stop reducing the volume of assets on the balance sheet, however, representatives of the regulator's management still argue about how long the policy of “patience” they have adopted for raising interest rates will last. At the moment, the regulator sees a slight risk in postponing the issue of interest rates and taking time to analyze growing risks, including slowing global growth, revealed the minutes of the January Fed meeting, published on Wednesday. While some representatives...
Welcome everyone! Before we dive a bit deeper into today’s topic of Bitcoin ETFs, let me take a moment and look at the price action recovery in cryptocurrency assets since last week’s update. During last week’s post, which you can read up on at “Bitcoin - Forex Combo Strategy: Digital Gold”, I pointed out that Bitcoin could quickly advance towards the $6,000. The first step for this rally to materialize is a breakout above $4,000 and price action is currently in the process to attempt such a breakout. Once we push above it, it will attract new...
