Dollar Movement Will be Key in 2020
Energy
Precious Metals
Currencies
Fixed Income
Equities
Price Prepping for New 7-Yr Highs?
Happy New Year! We are kicking off the New Year with stocks at all-time highs, oil prices spiking on Middle East tensions, and the precious metals complex following through nicely for our November/December videos. If you haven’t had a chance to watch those videos, they offer a helpful background on the technical setup for metals and the price action we are seeing today.
Resolution Coming in 2020?
The US dollar has frustrated bulls and bears for the past several years, as it has traded inside a historically narrow range without a clear long term directional bias. However, in both the near term and long term charts, it would appear a larger, secular move is coming.
Interest Rate Cuts In Question?
The robust jobs report (224,000 new jobs vs. 160,000 projected) immediately changed the narrative of forthcoming Fed rate cuts, which had been the wind beneath the sales of the recent bull action in gold and bonds, and the weight pushing the dollar lower. The Bloomberg article referenced above summed it up: “Though the economy still faces trade tensions and below-target inflation, signs that economic growth remains intact may challenge calls for the Fed to cut rates this month — especially those for a half-point reduction.” (more…)
