Today’s Key Market Drivers: 12th July 2019

The Yen continues to slide as traders see no fear in financial markets.


The Japanese Yen has been a major loser recently as traders see no reason to buy the safe haven currency as the fear evaporates out of financial markets thanks to the potential for looser monetary policy at Central Banks.

Traders continued to buy up stocks through the US trading session on Thursday which in turn continued to support emerging market currencies following Jerome Powell’s testimony in Washington DC on Wednesday. US index markets once again made fresh new all-time highs and drove back demand for safe-haven assets such as bonds the Yen, Swiss Franc and US Dollar.

Look out for my video over the weekend that goes into detail about how stocks can rally as the global economy weakens and when do I predict a stock market correction. There will be a tipping point later this year and as a trader, it can potentially be very lucrative knowing how financial history works.

US Fed Chairman to speak again today in Washington DC.


Jerome Powell is scheduled to speak at a Senate Banking Committee in Washington DC today, however, it would be highly unlikely that he will say anything different to what he and the Fed monthly minutes already confirmed on Wednesday. The likelihood is US interest rates will be dropped by 0.25% on July 31st.

Financial markets might as well take the day off this Friday.


There is no high impacting news scheduled today other than Jerome Powell speaking and as I mentioned in the last paragraph, he isn’t likely going to say anything new. The market will need some “new” news for any impulsive moves as the current rally in stocks and “risk-on” currencies won’t be shaken unless we see something new fundamentally which isn’t likely to come until next week.

With the weekend so close and markets so bullish I would think most major players will hold what long positions they have and look forward to some new data early next week.

Just to give you a heads up there is no major Central Bank reporting next week and only one US high impacting news number so unless we get some news from left field or a Donald Trump Tweet the market isn’t prepared for; I suspect the current trends will gently continue.

IMF Chief supports more stimulus from the European Central Bank.


In her last report on the Euro Zone as Head of the International Monetary Fund, Christine Lagarde said on Thursday that the IMF sees risks in the Euro Area economy with trade tensions, Brexit and Italy being three of the IMF’s biggest concerns. Lagarde who will shortly join the ECB (I hope she becomes President) said the IMF would like to see the ECB continue with its loose monetary policy. Her encouragement of the ECB to stimulate the Euro Area is another sign that a return to quantitative easing (electronic money printing out of thin air) is likely in the coming 12 months.

If the ECB does announce that it is ramping up the printing presses again the Euro is going to lose significant value. This could be a major new trend in the second half of 2019 and we must keep a watchful eye out for this.


Don’t let other people bring their small-minded attitude into your life.

AB

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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