S&P 500 Price Forecast – the S&P 500 continues to show strength
By Christopher Lewis
During the trading session on Wednesday, the S&P 500 rallied a bit, breaking above the 2790 level in anticipation of the FOMC statement. Ultimately, I think that the market will eventually go looking towards the 2800 level above, an area that has attracted a lot of attention in the past. I think short-term pullbacks could be buying opportunities unless of course we get some type of shock out of the statement.
Gold: Federal Budget Problems And Growing Dislike For The Dollar Should Be Bullish
By Seeking Alpha
- The US Federal budget deficit is on course to hit $850 billion in 2018.
- There is unlikely to be any improvement in the government’s finances going forward which will cause international sentiment to sour towards the dollar.
- This has already begun to happen and emerging markets have been rapidly stockpiling gold, which the market has completely failed to recognize.
- As the US dollar weakens in value, gold should appreciate.
- Gold is one of the only unloved assets in the markets right now so a contrarian viewpoint would suggest that it has nowhere to go but up.
Gold markets rally from bottom of consolidation
If we can break above the $1305 level, the market could continue to go much higher, perhaps reaching towards $1325 level. Otherwise, if we break down below the $1290 level, the market will probably go down to the $1275 level. In the meantime, expect a lot of noise but I am bullish longer-term, and I think that it’s only a matter of time before we rally, but that’s a longer-term investment type of situation more than anything else. Longer-term, I believe that we will break out above the $1400 level, but it’s going to take some time to get that type of momentum.
Short the Yen
By Peter A Rosenstreich
Friday Bank of Japan policy decision will be to hold rates.
The Bank of Japan (BoJ) has made it clear: no change should be expected. In addition, the trade dispute with the US has caused some distortion in the market pricing of the Euro. Monetary policy divergence remains the primary drive in USD/JPY positioning.
Inflation is far off target, and the BoJ has said that changes would materialize only when inflation reaches the bank’s target. Growth has also disappointed, led by weakening private demand, indicating a target-hit is also unlikely next year.
AUD/USD sticks to dismal data-led weakness, around mid-0.7500s
By Haresh Menghani
- Disappointing Australian employment details prompts some fresh selling.
- Weaker Chinese macro data/copper prices add to the downward pressure.
- The post-FOMC USD retracement slide might help limit further downside.