Fed Funds closed yesterday at 0.57 and under 0.66 for the first time since December 2015. Bullard as the only Supply Sider states no need to raise Fed Funds for years. Bullard is absolutely correct based on numerous Statistical tests. Every metric I viewed agrees with Bullard. Not sure why all of a sudden the rush by the Keynesians to raise Fed Funds into already existing overbought situation. Raise Fed Funds then as a price and as a range Fed Funds hits the Stratosphere.
Maybe the plan is to stop Trump’s economic implications to Tax cuts. We’re dealing with Democrats, don’t dare put it past those people in their insatiable desire for power and control. Trump’s policies overall throughout every agency of government has the power if passed to diminish the Democrat party to non existent status. Trump’s OMB Director Mulvaney stated his desire to cut every agency budget by 30%. That also must include Personnel and dues to Public Sector Unions. Union support to Democrats is unwavering. Without Union money, the Democrat Party is powerless.
EUR/USD range 1.0650 to 1.0443. Most vital break points above are located at 1.0613 and 1.0679. Both again represent MA break points only. The range break for today is 1.0597. This means massive resistance from 1.0597 to 1.0613.
The bottom side must break 1.0498, 1.0480 and 1.0469 to target 1.0443. Problem in 1.0400’s is EUR/USD becomes massively oversold. While EUR/USD trades 1.0650 to 1.0443, price actually trades inside wide wide ranges inside USD/EUR from 1.0285 to 1.0800’s. USD is dictating every EUR/USD price move as is the case for all currency pairs.
EUR/USD is traveling down oversold bottoms and in the same predicament as GBP.