SUMBER ARTIKEL
SEDANG VIRAL :
Forex Markets Steady, But Volatility Guaranteed In An Unusually Busy Week Ahead
Dollar opens the week broadly firmly, followed by Sterling as the second strongest. On the other hand, Australian Dollar is trading with and broad-based soft tone, followed by Canadian Dollar. Nonetheless, all major pairs and crosses are bound in Friday’s range only, suggesting that they’re in consolidative mode. In other markets, Asian stocks are generally soft with Nikkei trading down -0.68% at the time of writing. Hong Kong HSI is down -0.67% and China Shanghai SSE (LON:SSE) is down -0.16%. Singapore Strait Times is also down -0.59%. WTI crude oil is hovering in range around 69 as it struggles to regain 70. Gold is a touch softer as recent consolidation continues and is back pressing 1220. 10 year JGB yield hits as high as 0.113 and is pressing day high.
There are an unusually large number of important events ahead, including BoJ, Fed and most importantly BoE. On economic data side there will be ISMs, PCEs, NFP, Eurozone CPI, UK PMIs etc. Volatility in the markets is guaranteed. Technically, we’re staying bullish in Dollar as recent set back is seen as corrective. Immediate levels to watch for us are 1.1574 in EUR/USD, 1.3070 in GBP/USD, 0.997 in USD/CHF, 111.53 in USD/JPY, 0.7309 in AUD/USD. Break of these level will be signal that the greenback is finally regaining some strength.
US Treasury Mnuchin: Four or five years of 3% growth ahead
US Treasury Secretary Steven Mnuchin said in an interview with Fox News Sunday that the growth momentum is a not just a “one- or two-year phenomenon”. And, he added “we definitely are in period of four or five years of sustained 3 percent growth at least”. The comments came after US Q2 GDP released on Friday showed 4.1% growth, highest since Q4 2014.
Mnuchin also said Trump’s administration “absolutely support” Fed’s independence. Regarding Trump’s attack on the Fed, Mnuchin said “these are really more just comments saying, as interest rates are going up, it’s something that the president has a concern.” He also said “we think the Fed will be very careful in managing the economy.”
Trump tweeted earlier this month that “we go up and every time you go up they want to raise rates again. I don’t really – I am not happy about it.” Vice President Mike Pence echoed such comments on Sunday that “we don’t want policies out of Capitol Hill or elsewhere that diminish the tremendous energy that we have in this economy today.”
Support for German Merkel’s CDU/CSU dropped to 12-year low
Support for German Chancellor Angela Merkel’s CDU/CSU has fallen to a 12-year low according to a latest poll. The survey was conducted by public opinion research institute Emnid, published in the Bild am Sonntag newspaper. It’s done between July 19 and 25 with 2001 German citizens.
Results showed supported for Christian Democratic Union (CDU) and its Bavarian sister party Christian Social Union (CSU) dropped -1% to 29%, lowest since 2006. That compares with 33 percent in the September election. Support for Social Democratic Party (SPD) dropped -1% to 18%. The support for far-right Alternative for Germany (AfD) was unchanged at 15%. Support for Greens rose 2% to 12%.
The results also indicate that CSU risks losing its absolute majority in Bavaria in a regional election in October.
