Today’s Key Market Drivers: 21st December 2018
Before I share with you my thoughts on the markets for the last time in 2018, I would like to take a moment to thank a few people who out front and behind the scenes make my job so enjoyable. I genuinely love the people I work. They are simply AMAZING! Alex, Laz, Adam, Mike, Shez, Lachy, Zain and my twin brother Grant, you guys are the backbone of LTG GoldRock and I couldn’t do it without you. I genuinely love you our members too, your support, patience, enthusiasm and friendship makes what we do as a team so satisfying and rewarding. I am so blessed to have the career that I have and it is all of you that inspire me to get out of bed early and shoot for the stars every day.
I never take for granted the opportunity or responsibility you have given me and I can promise you that we will lift the bar even higher in 2019. I wish you and your family a safe and happy Xmas and we look forward to making 2019 our best year yet. AB
Another day and another market meltdown for US stock markets this time not just on the fears of US slowing growth and higher interest rates but a more short-term fear that Donald Trump will force a US Government shut down. We saw it plenty of times throughout the Obama administration, Government and military workers went without pay for a few days as both sides of politics argue over whether or not to extend spending levels. Donald Trump is arguing he’s not going to sign an extension to spending unless it comes with the money he wants for his Mexican border wall.
The Kiwi Dollar was the biggest loser on Thursday after weaker than expected GDP figures for the 3rd quarter were released and this came only hours after the US Fed announced their December rate hike and future plans in 2019 which rallied the greenback. The US Dollar whilst rallying strongly post the Fed statement gave back most of those gains through the US trading session as traders remain fearful the US Fed is raising rates too quickly as US economic growth slows going into 2019.
The Aussie Dollar also fell sharply as it too experienced some mid-morning economic data that only added to the selling pressure post the Fed decision. The official unemployment report for December showed a jump in the number of unemployed to 5.1% up from 5.0% in November.
The Bank of Japan and Bank of England kept their current policy programs steady in December with neither having any significant impact on their own currencies. The Yen continues to gain traction as the safe haven currencies rally and the Pound remained relatively steady with Mark Carney the BOE Governor saying Brexit uncertainty had intensified considerably in the last month.
In other news, the Mexican Central Bank lifted its official interest rate 0.25% to 8.25%. The Swedish Central Bank also lifted its cash rate for the first time in seven years and sent the Crown sharply higher. The optimism shown by the Swedish Central Bank and a deal between Italy and the European Union over Italy’s 2019 budget helped lift the Euro which I believe is now poised for a break out to the upside leading into 2019. Please see my daily video report for more info. Today sees the release the last of the high impacting economic data for 2018 with UK, USA and Canadian GDP, US Personal Consumption, Personal Income and Spending as well as US Durable Goods.
It’s been a week jam-packed with high impacting data but as I suggested at the start of the week the US Fed’s statement and stock market moves were likely going to be the two elephants in the room.
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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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