WEEKLY REPORT Dec, 7 to Dec 11, 2015
Previous week: it was very
heavy busy week (Fed, ECB, OPEC), the results was excepted Yellen gave some
hints that rates are not willing to raise, Mr. Draghi cuts rates and OPEC will
not reduce productions. The EUR/USD lifted up after Yellen’s speech, the AUD
pairs was affected for a short period then it returned to its rising way. The IMF
adding the RMB to the SDR basket.
What next:
As it became obvious that the
ECB, Fed and recently the RBA, agrees to put the prices in specific range in
order to make the currency prices pushes the inflation instead of making the inflation
pushes the currency prices, inflation no way to pushes higher next months, so
what I the central banks trying to do is to make currencies overvalued with
will lead to unjustified rising in products prices which will lead to their
apparent success in putting the finance on the right track. It is irrational to
find the Fed (on contrary to other central banks) is going to raise the
interest rates specially that Yallen herself gave signals on non rising the
rates before considerable period as she said (the committee participants
recognize that the future course of the economy is uncertain), in addition (it
is appropriate to be more cautious in the raising our target for the federal funds
rate). In fact what will happen as a reaction to the unjustified raise is that
the GDP will fall and the CPI will start to give us FALSE SIGNALS. Otherwise I
don’t I don’t rule out that they
may make a small raise as a result of the pressure made by the congress and the
media.
But the most interesting event the previous week was the addition of RMB
to the IMF basket, we will discuse the effects resulted from the IMF dission
next week.
Weekly trade:
First avoid medium and long term entries for EURUSD and any EUR pair,
Second we are on the track with our previous successful trade long
AUD/JPY pair.
MAEKETS-TITAN@FINANCIER.COM
GOOD LUCK,,,