EUR/USD, Yield Curves, Trump: Levels, Ranges, Targets

 

Michael Pento yesterday informed the Chinese yield Curve is now negative and this adds to negativty in the Japanese, CHF, EUR, UK, NZD, CAD and USD. The dark period lies ahead as many more nations must contain unanimity in negative yield curves because the world operates on the same interest rate numbers inside tiny channels and the result is nations follow each other closely so not one nation gains advantage.

All nations operate against 2% Inflation, 1% GDP, Stimulus, low wages and 50 pip daily movements in each other’s exchange rates. So tightly bound are the nations, a disaster in one nation leads to a crash in all nations. And its done by agreement as opposed to the 1930’s currency market when nation set out to destroy each other’s exchange rates to gain export advantage as an economic rebuild from the depression.

Prior research suggests recession in 6 months by negative yield curves but as speculation and against all the nations in negative, is 6 months the threshold. Year 2018 is the next vital number in the 323 year history of central banks. The recession window is current to 2018. Not helpful is politics remains fluent for Trump.

Trump’s current threat comes from Special Prosecutor Mueller and his wide agenda to investigate any topic pertaining to Trump and at any period in time. Why can’t Mueller and his cadre of Democrat lawyers investigate the entire Republican party as he was granted the power. Attorney General Sessions recusal from Russia investigations leaves the number 2 and a Democrat at the Justice Department as the next person to fire Mueller. If number 2 refuses then comes a long line of Democrats at Justice who will also refuse.

Trump must eliminate Sessions, force an unrecusal and / or hire an Attorny General to neutralize and or outright fire Mueller. Against Mueller, Trump lacks any choice. The Democrats are using the old playbook when they brought down Nixon. Look for Trump to win and frustrate Democrats yet again against Mueller as the conventional Democrat approach to Trump will never work.

EUR/USD. Break above comes 1.1718, we’re looking at sell points today at 1.1688. Two break points below are located at 1.1602 and far below at 1.1552. Look for a bounce at 1.1601 if seen today.

GBP/USD. Currently caught between break points at 1.3095 an 1.3051. Below 1.3051 comes next 1.3022.

AUD/USD. Break points above are located at 0.7959 and 0.7969.

NZD/USD. Break points are located at 0.7454 and 0.7478 vs below at 0.7427.
Brian Twomey

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