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.
The Labor Department announced the economy created 165,000 jobs in April, and the unemployment rate slipped a notch to 7.5 percent. That’s better than March but hardly enough-getting unemployment down to 6 percent over the next three years would require 365,000 jobs a month, and that is not likely to happen. Adding in discouraged adults [...]
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 [...]
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, [...]
The economy is not doing well. Unemployment is too high and big deficits threaten the credit worthiness of the federal government, and only genuine tax reform will make things right.
Fresh evidence is emerging that the U.S. economy is slowing in the second quarter. Stock prices continued to slide as earnings disappointed, and the Conference Board’s index of leading economic indicators pointed down.
With the Senate will likely to vote on a bipartisan bill to toughen federal gun controls, Americans should remember the effectiveness of government regulations has limits. Ultimately, new laws will give Americans a false sense of security and further delay efforts to address cultural dysfunctions that give rise to so much violence. The Senate bill [...]
President Obama has taken the middle class hostage in a thinly veiled bid to hike their taxes. Having refused to work with Congress to reduce spending by $1.2 trillion over ten years, as he agreed to do when drafting the Budget Act of 2011, the president must now implement $85 billion in across-the-board cuts to [...]
Gold`s technical correction to the low of $1,550 was close enough to the final target at $1,520. Although I do not expect gold to start moving higher anytime soon, I do believe that gold, around the $1,500 area, is a good area to start building a long position. The downside risk is small, if gold [...]
Greater than expected economic contraction in the Euro zone is sending the Euro/USD lower. The currency pair broke two major supports at 1.3300 and 1.3230 today. The next support is at 1.3110, the 38.2 percent Fibonacci retracement.