US House of Rep Kills Plan B, Latest on EURUSD-Gold-Yields Trifecta
Equity futures 2% sell off as US House of Representatives kills Plan B on taxing the rich and will not resume vote until after Christmas. Yet even if the Plan B passed the Republican-led Senate, it is unlikely to make it into the Senate and even if it, Pres Obama would veto it. And the only way to overturn a presidential Veto is 2/3 majority vote by both Chambers which is virtually impossobe. As we near the close of the year, we hear more of the same; major central banks willing to do what it takes to keep yields down, markets stable and risk currencies supported. We talked today about the falling gold/oil ratio, with the force weighing on gold being investors’ exiting from Gold/EUR position. Reports of Morgan Stanley’s pulling the plug off its underperforming gold funds have also dragged the metal down sharply. Next year, in order for gold to avoid a decline below $1570s, interest rates must remain low. Central Banks' shift away from price stability will only drive up yields if the macro-econonomic show marked improvement while policy makers make no notable hawkish steps. We will closely track the EUR/USD-Gold-Yields Trifecta in order to better grasp the catalysts as well as the dependent factors. This week’s Premium Trades include 2 shorts in gold and a Dual Trades in silver (long and short). For these detailed trades and their rationale, take a look at the latest version of Premium Insights “Euro Sticks to the Script”.
USD Deleveraging & Tech Applications
by Adam Button | Sep 23, 2020 18:16
The Moment of Truth?
by Adam Button | Sep 21, 2020 23:15
FX Shrugs, Indices Shaken
by Adam Button | Sep 18, 2020 18:53
Fed's 2023 Special, BoE Thinks Negative
by Adam Button | Sep 17, 2020 14:04
Trading in & out of the Fed
by Adam Button | Sep 16, 2020 16:52