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Market View

Market Recap – Risk-on

Friday, September 6, 2019 10:48 AM GMT

We are supposed to live in the era where bad news is good news, because they strengthen the argument for extra stimulus. When, US unit labor cost and US factory order m/m were unexpectedly increased, the risk-on mode has been challenged. We also live in the era of forward guidance. Given that there is already a 93% probability of a FED rate cut in 12 days, at the end, financial markets digested yesterday’s positive macroeconomic releases as a reason to continue the risk-on mode with USD falling, EUR-AUD-CAD-NZD and equities advancing. The same mode could probably continue today.

As far as the US-China trade relations are concerned, we used to listen the word “constructive meeting” when there was no progress at the negotiation tables. Now the new set of words that could drive NLP algos crazy (ie trading robots that use natural language processing) is “substantial progress”. That has been the selection of words of the Chinese Central TV, when they announced the new round of face-to-face negotiations that will take place on October.

Macro releases: Today the focus turns to the European GDP, the US non-farm payrolls and the speech of Jerome Powell at the Swiss Institute of International Studies. Full economic calendar is here.


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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