News
AUD/USD Technical Correction has Begun
AUD/USD broke major weekly support line at 101.50 late last week. It looks like the currencies pair major technical correction is under way. The first initial target is 0.9886, the 23.6 percent Fibonacci retracement. The final target of this correction is 0.9143 the 38.2 percent Fibonacci retracement.
Forgiving Student Debt Won’t Help Students or Fix Colleges
College is too expensive, graduates can’t find decent jobs and pay off their loans, and students, parents and educators all share in the blame. Now, President Obama proposes to forgive more student debt and that will make a bad situation worse.
Can USD/Yen Moves Above 100.00?
The bullish move in the USD/Yen is halting at the 100.00 level. There are a few good reasons for this. One, 100.00 is a psychological resistance level. Second, technically, it is also an important 50 percent Fibonacci retracement from the 124.00 to the low of 75.55.
Europe’s Depression
The whole of Europe is headed for a permanent recession–a depression. Austerity and labor reforms can’t save it. Radical measures–abandoning the euro and deficit spending in Germany–are the only way out. Unemployment exceeds Great Depression levels in Spain, many parts of Greece, Portugal and Italy, and is rising in northern Europe. Slashing government spending and [...]
Fed Actions and Friday’s Job’s Report
Yesterday, the Federal Reserve announced it is keeping its foot on the gas–for good reason. The fiscal drag imposed by the $160 billion January tax increase, and $45 billion in sequester spending cuts is slowing consumer spending and smothering investment. Jobs will remain tough to find, and wages in the doldrums well into summer. Now [...]
Can Euro/USD Break Out of the Range?
Euro/USD has been trading within the 1.2900 and 1.3200 range for many days. At the time of this article, it is testing 1.3200 after failing to go below the 1.2900 level from last week. The Euro currency is slightly stronger due to the recent overall weakness of the USD. We have the ECB and FOMC [...]
Gold Continues to Move Higher
by Dixon Fung Gold continues to move higher in a correction after hitting the low at $1,322. Last Friday, gold traded above the 50 percent Fibonacci retracement at $1,454 and it is now trying to test the 61.8 percent retracement at $1,485 at the time of this article.
Weak Consumer Spending Risks Double Dip Recession
The Commerce Department reported that consumer spending advanced 0.2 in March-much weaker than the 0.3 and 0.7 percent registered in January and February. Extraordinary year-end bonuses and dividends-intended to dodge higher taxes in January-boosted consumer activity in January and February but now households are hunkering down. Much weaker consumer spending is expected for the second [...]
First Quarter GDP up 2.5 Percent on One-Time Factors, Second Quarter Growth Anemic
The Commerce Department reported GDP grew at a 2.5 percent pace in the first quarter but don’t break out the champagne. Several one-time factors contributed to this seemingly robust performance. The economy is already slowing and new crises threaten. Most of first quarter growth likely was concentrated in January and February and the economy slowed, [...]
Is the Correction Over for Gold?
Gold continues to move higher and is testing the $1,455 resistance level at the time of this article. If the technical correction is still in play, then gold should be testing the downside from this level.
Top News
- BOJ keeps policy on hold; Kiuchi proposes looser price target timeframe May 22, 2013TOKYO (Reuters) - The Bank of Japan on Wednesday decided to keep monetary policy on hold, but one board member tried unsuccessfully to loosen the central bank's commitment to achieving its 2 percent inflation target within two years. In a unanimous vote, the BOJ maintained its pledge to increase base money, or cash and deposits at the central bank, at a […]
- Asia stocks rise as Fed official backs easy policy May 22, 2013BANGKOK (AP) — Asian stock markets were mostly higher Wednesday after investor confidence was boosted by a Federal Reserve official's comments that the U.S. central bank should stick with its super-easy monetary policy. […]
- Senate panel approves immigration bill May 22, 2013WASHINGTON (AP) — Far-reaching legislation that grants a chance at citizenship to millions of immigrants living illegally in the United States cleared the Senate Judiciary Committee on a solid bipartisan vote Tuesday night after supporters somberly sidestepped a controversy over the rights of gay spouses. […]
- Merck signs $5 billion share buyback agreement with Goldman Sachs May 22, 2013(Reuters) - Merck & Co Inc said it has entered into a $5 billion share repurchase agreement with Goldman Sachs Group Inc, as the drug giant looks to prop up shareholder value in face of stiff competition from makers of less-costly generics. Under the accelerated share repurchase agreement (ASR), Merck has agreed to repurchase about 99.5 million shares fr […]
- The Irish loophole behind Apple's low tax bill May 22, 2013By Tom Bergin LONDON (Reuters) - Apple's ability to shelter billions of dollars of income from tax has depended on an unusual loophole in the Irish tax code that helps the country compete with other countries for investment and jobs. A U.S. Senate investigation revealed Tuesday that Apple, maker of iPhones, iPads and Mac computers, channeled profits int […]