Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly

Interest-Rates / US Bonds Aug 10, 2019 - 02:02 PM GMT

By: QUANTO

Interest-Rates

The sceptre of recesion is growing worldwide. German industrial production registered its biggest annual decline in almost a decade when it reported numbers in June. We covered it here The result was country’s flattest yield curve since the financial crisis.


EURDOLLAR futures contract

The backbone of financial industry and forex world is the eurdollar futures contract. We take a look at the 3 month 2012 dec contract. It has broken above the 2016 highs. The rise in contract price suggest a lower US yield. Current yield on the 10 year is near 1.725% while the 2016 lows were below 1.4%. There is a lot more fall inyield that we expect as FED cutes rates from here on at teh fastest pace in the last decade. There may be a 50 bps cut in sept and 100 by end of dec.

China surplus

China trade surplus is still growing led by manufacturing balance.

China exports

China’s export growth rebounded in July and imports shrank less than forecast, signaling some recovery in trade just as companies brace for the arrival of new tariffs from the U.S. Yuan has been stable. No runaway deprecitation but this was widely communicated to our clients, that yuan will not depreciate.

The chinese retail data is rigidly stable showing an economy which is resillient to US tariffs.Now the chinese retail numbers are right up there with US retail thus both the economies are matched on retail sales. China with its vast economy is starting to push the envelope against the 300 mil US retail number. US desperately needs to reflate the prices if they have to match the number else we see china retail economy going far above the US scale.

 European banks

European banks are the cusp of a all time lows.  A break here will almost push a 20 % slide in bank prices.

Oil policy

Saudi Arabia has phoned other oil producers to discuss possible policy responses as oil prices slide to a seven-month low, an official told Bloomberg, adding that the kingdom won’t tolerate a continued decline in prices and is considering all options. It comes after Brent crude futures sank almost 5% on Wednesday following a surprise increase in U.S. stockpiles and amid concern over how the U.S.-China trade war could affect demand. Oil futures recovered somewhat overnight. However our resarch shows that Oil has fallen with yield falling so we see a lot more downside in Oil into the year end targetting $35.

US Debt ownership

China holds 17.3% of US debt which is 1.113trn. That number was higher in 2016 at 1.3 trillion. The US-China spat is because of China reduced holding of US debt. Japan has been taking US debt but will have its limit. It is already 16% of US debt ownershop.

US stocks ownership shows the increasing effects of overseas purchase. This is a marked difference from above 50 years back.

US Yield curve

The US yield curve shows the high short end of curve which is a risk for risk assets. The curve is inverted which suggests that money is flowing into the long end of the curve instead of the real economy. This happens when investors lose confidence with the economy.

The chart above is a clear representation of the increasing influence of China growth story. They are becoming more and more dominant on the growth front with an ever larger pie of the world economy.

QUANTO trade copier

We run a high performance all market trading system in the forex world. Its available to invest and you can contact us 

Overall returns are scrapping above the 100% mark starting in May 2019.

The latest August returns shown it is up +16%.

Weekly returns : This week has made +7%

Monthly returns

Monthly returns show that August is at +16%. The returns are coming in at high profitability.

If you wish to connect your MT4 broker account or FIX account, please get in touch here: Contact Us

Source : https://quanto.live/dailysetups/eurodollar-futures-above-2016-highs-fed-to-cut-over-100-bps-quickly/

By Quanto

http://quanto.live

Quanto.live is a Investment Management firm with active Trading for clients including Forex, Crypto. We send our trades via trade copiers which are copied to clients trading terminals. Top notch fundamental analysis and trading analysis help our clients to generate superior returns. Reach out to us: http://quanto.live/reach-us/

© 2019 Copyright Quanto - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules