Trump Tax Cuts
Donald trump attempted to help markets break out of their US Policy/EU uncertainty range overnight after promising a “phenomenal” tax plan in the coming weeks. This pushed the S&P500, Dow Jones and Nasdaq to all-time highs and also saw a broad based U.S. dollar rally. USD/JPY punched through the 130.0 level and has since held its gains trading at levels last seen on Feb 3 – chart below.
The S&P 500 index (closed 2307.87 up 0.58%) hasn’t seen a 1 percent move, in either direction, since Dec. 7. Its longest streak on record, according to data dating back to 1978. Traders are looking for a catalyst for a strong directional move or some volatility – continue to look towards US/EU for political and policy decisions. For more experienced traders, when markets are quiet or ‘tough’, a change in product, style or trading hours can help you find opportunities others miss out on. Don’t stick to the one trade – keep searching.
Wall St moves and the U.S. dollar directly affected Golds recent moves higher, trading down from 1,246 to lows of 1,227 in the session giving back two days of gains. All eyes on trump to come through with his promised tax cuts, deregulation and government spending.
RBNZ announcement
AUD/NZD continues to unwinds its consensus trade after the RBNZ announcement Wednesday morning. This was a great opportunity for traders to get long after the announcement heading into the Aussie market open. Next resistance level target at 1.0658.
Abe Trump
Japanese Prime Minister Shinzo Abe will meet with President Trump in Washington on Friday. Trumps withdrawal from the Trans-Pacific Partnership (TPP) negotiations will be top of their agenda.
Fri Feb 10th announcements
- RBA Monetary Policy Statement (11:30AM AEST)
- China Trade Balance. EXP 295B (Time unknown)
- GBP Manufacturing Production m/m. EXP 0.3% (8:30PM AEST)
