The index is looking to break above the 96.60 level, as the US NFP’s momentum wasn’t enough to strengthen the bulls across the board. Above the 96.60 level, we can expect a rally to the 97.74 price zone because the USDX is still supported by the 200 SMA on the H1 timeframe. Another scenario is […]
The H1 chart is still reflecting a battle between buyers and sellers on the Cable, as the range established around the 1.3000 and 1.2858 levels is helping to develop that bearish sideways structure. With a breakout above the 1.3000 zone, GBP/USD can reach 1.3148, where it will be very close to the 200 SMA, while […]
Overview Gold price approached from testing the main bullish trend line that rises now to 1347.50 and bounced bullishly from there. This keeps the bullish trend scenario valid efficiently for the upcoming period. This stochastic reaches the thresholds of the oversold areas, providing positive motive that we are waiting to assist to push the price […]
Since our previous analysis, gold has been trading downwards. The price tested the level of $1,350.64 in a high volume. According to the 30M time frame, I found potential end of bullish corrective phase at the price of $1,362.70. The value area from previous day is lower, which is a sign that sellers are in […]
Gold price is pulling back as short-term support is broken. This is considered a normal corrective pullback in a larger bull market. We warned bulls that profits should be taken and positions should be protected as a pullback was imminent. Now the pullback has started and could even bring price back towards $1,300. Blue lines […]
General overview for 08/07/2016: The market keeps trading below the weekly pivot and one more low below the level of 109.55 is still being expected. Currently, the price is trading inside of the congestion zone between the intraday resistnace at the level of 113.36 and intraday support at the level of 110.82. There are no […]
Overview The gold price has been showing sideways and tight-range trading above 1,345.80 since morning. Therefore, our bullish trend expectations remain valid for today, supported by the positive overlapping signal that comes from stochastic now, looking to head towards 1,400.00 that represents the next main target. In general, we still expect the bullish bias in […]
Since our previous analysis, gold has been trading downwards. The price tested the level of $1,360.00 in an ultra volume (climax). According to the 30M time frame, I found a climatic action and responsive buyers reaction at the price of $1,359.90. Using market profile, I found single prints at the price of $1,139.90. Be very […]
Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5318 in a high volume. The price reached our take profit levels from yesterday at 1.5450 and 1.5385. According to the 30M time frame, I found responsive buyers at the price of 1.5315. We may see potential upward correction. I […]
Gold price is trading inside a bullish channel. Price reached a new higher high as we had expected but still it is below $1,400. Price reached the resistance area and we might see a pullback towards $1,260 today. A deeper pullback towards $1,250-45 is also possible but overall trend remains strongly bullish. Blue lines – […]
USD/JPY is expected to trade in a lower range as the key resistance is at 101.45. On Wednesday, U.S. stocks rebounded as the minutes of the U.S. Federal Reserve’s latest monetary policy meeting, which showed officials’ concerns over Britain’s vote on whether to leave the European Union, and a slowdown in U.S. job growth left […]
USD/CHF is expected to trade in a lower range as the key resistance is at 0.9770. The pair remains under pressure below its key resistance at 0.9770, which maintains the strong selling pressure. In addition, a bearish cross was identified between the 20-period and 50-period moving averages (a negative signal). To conclude, as long as […]
NZD/USD is expected to trade with bullish bias above 0.7105. The pair broke above the 50-period moving average and remains on the upside. A support base at 0.7105 is formed and allows a temporary stabilization. Meanwhile, a bullish cross was identified between the 20-period and 50-period moving averages. Besides, the relative strength index is above […]
GBP/JPY is expected to trade in bullish bias. The pair broke below its 20-period moving average but is still trading above the 50-period one. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as support is at 129.75, look for a technical rebound towards 131.50. A […]
Technical outlook and chart setups: Gold printed fresh highs yesterday around $1,375.00 levels before pulling back lower. The metal is seen to be trading at $1,267.00 level at the moment, looking to resume lower. The wave structure indicates that the yellow metal might have completed a 5-wave rally from $1,046.00 through $1,375.00 level as depicted […]
Trading recommendations : Sell now and below 1.1120 Stop loss at 1.1186 Take profit at 1.0970 The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com Related Posts:Trading Signals for GOLD (XAU/USD) for April 15-17, 2024:… April 15, 2024 Gold is trading around 2,332, bouncing above the 200 EMA…Trading Signals for GBP/USD for […]
Trading recommendations : Sell now Stop loss at 0.7180 Take profit at 0.7040 The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com Related Posts:Trading Signals for GOLD (XAU/USD) for April 15-17, 2024:… April 15, 2024 Gold is trading around 2,332, bouncing above the 200 EMA…Trading Signals for GBP/USD for April 15-17, 2024: […]
Overview The gold price bounced bullishly after testing the bullish trend line yesterday. This reinforces the continuation of our bullish overview for the upcoming period. Stochastic continues providing a positive signal on the four-hour time frame helping the price move towards our main awaited target at 1,400.00. Note that a break of the 1,343.50 level […]
The global banking system, and your financial future, are at serious risk right now. To understand why, just look at what’s going on with the government’s latest radical policy. Regular Dispatch readers know we’re talking about rock bottom interest rates. According to MarketWatch, global interest rates are at the lowest level in 5,000 years. Credit is cheaper right now than at any point since the First Dynasty of ancient Egypt, around the 32nd century BC. Today, we’ll explain what this means and how to protect yourself going forward..…
Interest rates didn’t get this low “naturally.” They’re at record lows because central bankers put them there..…
In 2008, the Federal Reserve dropped its key rate to near zero to fight the financial crisis. It’s kept rates there for eight years to encourage borrowing and spending. Other major central banks did the same thing. According to MarketWatch, there have been more than 650 rate cuts since September 2008. Rates in Canada and England are also near zero. In Europe and Japan, rates are below zero.
As we’ve explained before, negative interest rates basically tax your bank account. Instead of earning interest on the money in your bank account, you pay the bank. Not long ago, negative rates were unheard of. Today, more than $12 trillion worth of government bonds pay negative rates, up from $6 trillion in February.
They’ve even seeped into the corporate debt market. According to Bloomberg Business, more than $300 billion worth of corporate bonds now “tax” bondholders. Central bankers told us low and negative rates would “stimulate” the economy. But, as you’re about to see, they’ve done far more harm than good.
Central bankers made it much harder to retire..…
That’s because rock bottom rates don’t just make it cheap to borrow money. They make it tough to earn a decent return. From 1962 to 2007, a U.S. 10 year Treasury paid an average annual interest rate of 7.0%. Today, a U.S. 10 year Treasury yields just 1.5%, an all time low. It’s the same story around the world. Last week, 10 year bonds in Ireland, England, Germany, France, and Japan all fell to record lows. In Japan, you actually have to pay the government 0.23% every year you own one of its 10 year bonds.
This is a serious problem for hundreds of millions of people. For decades, retirees could earn a safe, decent return owning these bonds. Some folks even lived off the interest they earned from these bonds. These days, you have to own riskier assets like stocks to have any shot at a decent return. Central bankers have effectively forced retirees to gamble with their life savings. Rock bottom rates are a serious threat to major financial institutions too.
According to U.S. banking giant Citigroup (C), low and negative rates are “poison” to the global financial system..…
They could make pension funds, insurance companies, and banks “no longer viable in the long term.” Business Insider reported last week:
As Citi notes: “Viability in its strong sense means profitability (a rate of return on equity at least equal to the cost of capital). In its weak sense, viability means solvency.” Basically, Citi is warning that the negative rates may stop institutions being able to make money, which in turn would hit their ability to pay out on things like pensions and insurance policies.
This is a major risk even if you don’t have a pension or life insurance policy. That’s because pension and insurance companies oversee trillions of dollars. They’re pillars of the global financial system…and negative rates are destroying them.
Rock bottom rates could also put some of the world’s biggest banks out of business..…
You see, banks earn most of their money making loans. When rates are high, they make more on each loan. When rates are at record lows, like they are today, banks often lose money. Business Insider explains how today’s record-low rates are starving banks of income:
Citi points out that: “Banks in large part live off the differentials between lending and borrowing rates or between investment returns and funding rates.” Persistently low interest rates could hit these differentials, lowering profitability and seriously harming banks in the long run.
Profits at America’s four biggest banks fell by an average of 13% during the first quarter…
This group includes Citigroup, Wells Fargo (WFC), Bank of America (BAC), and JPMorgan Chase & Co. (JPM). European banks are doing even worse. Swiss bank UBS’s (UBS) profits plunged 64% during the first quarter. Profits at Deutsche Bank (DB), Germany’s biggest lender, fell 58%. Spanish banking giant BBVA’s (BBVA) earnings fell 54%. The CEO of Deutsche Bank warned last month:
In the banking world, we are currently struggling with negative interest rates.
We will struggle more as the effect of those negative interest rates plays out into our deposit books.
Dispatch readers know some of Europe’s most important financial institutions are looking for ways to get around negative rates..…
Commerzbank, one of Germany’s largest banks, said last month that it was thinking of pulling money out of Europe’s banking system to avoid paying negative rates. Other banks have started making riskier loans and buying riskier assets to offset rock-bottom rates. The Financial Times reported in March:
Gonzalo Gortázar, chief executive at Spain’s Caixabank, expressed concerns about a build up of risk in the banking system as a whole. “In a world of low or negative interest rates, that is a possible consequence; you could see banks taking more risk,” he said.
Longtime readers know excessive risk-taking by banks contributed to the 2008 financial crisis. As a result, the S&P 500 plunged 57% from 2007 to 2009. And the U.S. entered its worst economic downturn since the Great Depression.
Bank stocks are already trading like a financial crisis has begun..…
Swiss bank Credit Suisse (CS) has plummeted 63% over the past year. Deutsche Bank is down 60%. Royal Bank of Scotland (RBS) is down 59%. Mitsubishi UFJ Financial Group (MTU), Japan’s biggest bank, is down 39%. These are huge drops in short periods. Remember, these are some of the most important financial institutions on the planet.
We encourage you to take action now..…
Our first recommendation is to avoid bank stocks. Low and negative rates are eating these companies alive right now. And it could be years before governments abandon these failed policies. According to Fed Chair Janet Yellen, low interest rates are the “new normal.” We also encourage you to own physical gold. As we like to remind readers, gold is real money. It’s preserved wealth for centuries because it has a rare set of characteristics: It’s durable, easy to transport, and easily divisible. A gold coin is valuable anywhere in the world.
This year, gold has jumped 26%. It’s trading at its highest price in two years. But Casey Research founder Doug Casey says this rally is just getting started. According to Doug, gold could soar 500% or more in the coming years. If you’re nervous that central bankers will take this interest rate experiment too far, own gold. It’s the best way to protect yourself from desperate governments.
We also encourage you to watch this short presentation. It explains how these failed monetary policies could spark something much worse than a banking crisis. As you’ll see, this is a threat to you even if you don’t a have a single penny in the stock market. Click here to watch this free video.
Deutsche Bank is trading like a financial crisis has begun. Today’s chart shows the performance of the German banking giant. You can see its stock is down more than 50% over the past year. Last Thursday, it hit it a new record low. Like other European lenders, low rates are killing Deutsche Bank. Last year, the company lost $7.5 billion. It was its first annual loss since the 2008 financial crisis. And yet, its plunging stock suggests more bad results are on the way.
According to the International Monetary Fund (IMF), Deutsche Bank is the world’s riskiest financial institution. That’s a problem even if you don’t keep money with Deutsche Bank or own its shares. The Wall Street Journal reported last week:
The IMF also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally. “In particular, Germany, France, the U.K. and the U.S. have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country,” the IMF added.
In other words, problems at Deutsche Bank could spread to other banks around the world. It’s another reason why you should avoid bank stocks and own gold right now.
The article This 5,000-Year Low Is Ruining Your Retirement was originally published at caseyresearch.com.
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Since our previous analysis, gold has been trading upwards. As I expcted, the price tested the level of $1,374.25 in an high volume. According to the 30M time frame, I found strong upward trend and successful testing of supply in a low volume at the price of $1,364.00. I have placed Fibonacci expansion to find […]
Gold price remains in a bullish trend holding above the short-term support of $1,340 and testing the post-Brexit high at $1,360. I continue to expect a new higher high near $1,400 where the first important long-term resistance is found. Blue lines – bullish channel Gold price continues to trade above the Ichimoku cloud and inside […]
Overview The gold price tests the bullish trend line shown in the image and keeps trading steadily above this level. Stochastic reaches the thresholds of the oversold levels now, supporting the chances of resuming the main bullish trend, which next target is located at 1,400.00. Therefore, the positive scenario will remain valid for today conditioned […]
Since our previous analysis, gold has been trading downwards. The price tested the level of $1,338.34 in an ultra high volume (climax). According to the 30M time frame, there is massive climax in the background and successful testing of supply, which is a sign that selling looks very risky. Climatic action represents panic reaction usually […]
Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5495 in a high volume. The price reached our take profit level from yesterday at 1.5390 (Fibonacci expansion 161.8%) and I saw strong rejection from that point According to the 30M time frame, I found intraday upward trend and successful testing of supply […]
Gold price is pulling back after testing the post-Brexit high of $1,360. I continue to expect a higher high for Gold price near $1,400. The trend remains bullish. Green line – support Gold price pulled back towards the 38% Fibonacci retracement as this is a justified pullback. The price is trading above the 4-hour Kumo […]
After a quiet start of the week due to US Independence Day, the market will turn its head to the Speeches and Economic Data that is due today. BoE will present its report on financial stability today and Governor Mark Carney will speak at a press conference in which traders will examine the BoE response […]
Trading Recommendations : Sell now Stop loss is at 0.7245 Take profit is at 0.7125 The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com Related Posts:Trading Signals for GOLD (XAU/USD) for April 17-19, 2024:… April 17, 2024 Gold is trading around 2,386, within an uptrend channel, and…Trading Signals for Ethereum (ETH/USD) for […]
Trading recommendations : Buy above 1.7445 Take profit is at 2.0530 Stop loss is at 1.6900 The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com Related Posts:Trading Signals for GOLD (XAU/USD) for April 17-19, 2024:… April 17, 2024 Gold is trading around 2,386, within an uptrend channel, and…Trading Signals for Ethereum (ETH/USD) […]
Since our previous analysis, gold has been trading upwards. As I expected, the price tested the level of $1,357.30 in a high volume. According to the 30M time frame, I found that demand is in control in the market. The price went into correction and I found successful testing of supply at the price of […]
Gold price continues to move higher towards our $1,400 target as we suggested from last week. Bulls should raise their stops to $1.328 at least if not $1,333. I remain bullish Gold. Black lines – triangle (broken) Gold price has reached the post-Brexit highs as we expected and I believe it can continue higher towards […]
