Yen May Rise as US Autos Tariff Threat Revives Trade War Jitters
By Ilya Spivak
The return of trade war jitters may overshadow a lacklustre offering of economic data in European and North American trading hours. The US Commerce Department will begin hearings on its investigation of whether auto imports pose a threat to national security. The Trump administration is pondering raising tariffs on these grounds having used similar logic to increase duties on aluminium and steel.
Headline flow suggesting US Commerce Secretary Wilbur Ross and company intends to lay out a case for increasing protectionism may undermine risk appetite across financial markets. In the G10 FX space that may be most directly reflected in a rising Japanese Yen as souring sentiment inspires the unwinding of carry trades funded in the perennially low-yielding currency.
USD/CAD recovers overnight losses, jumps back to 1.3200 mark
By Haresh Menghani
The USD/CAD pair caught some fresh bids on Thursday, with bulls now eyeing a move back above the 1.3200 handle.
The US Dollar remained supported by upbeat economy outlooks from the Fed Chair Jerome Powell and the central bank’s Beige Book report, which reinforced gradual Fed rate hike prospects.
This coupled with a negative trading sentiment around crude oil prices weighed on the commodity-linked currency – Loonie and provided an additional boost.
Netflix Sell-Off Is Good for Bulls: Bernstein
By Donna Fuscaldo
Netflix Inc. (NFLX) stock was under pressure earlier this week as investors pounded the streaming video content provider after it posted second-quarter results that showed lower-than-expected subscriber numbers.
That dip in shares of Netflix—it has recovered somewhat in trading Wednesday—isn’t bad news for bulls. In fact, any weakness presents a buying opportunity if you are inclined to follow the advice of Wall Street firm Bernstein. In a research report this week, analyst Todd Juenger argued that whether or not Netflix has 130 million or 131 million subscribers in the quarter doesn’t impact its long-term goal of being the leading player in content streaming around the globe. The analyst said in the note to clients covered by Barron’s that weakness presents an opportunity for Netflix bulls to add to their positions in the stock and provides an opportune entry point for those waiting on the sidelines to get into the stock.
The analyst took the opportunity to raise his price target on Netflix to $434 from $372 a share, implying shares could gain an additional 14%.
Google’s $5 billion fine: What you need to know
By Jillian D’Onfro
On Wednesday, the European Union slapped a record 4.34 billion euro ($5 billion) fine on Google for using its Android phone software to stifle competition.
EU antitrust regulators ruled that the company, whose Android software powers more than 80 percent of the world’s smartphones, pushed consumers to its search engine, further weakening rival search providers and app makers.
The fine of $5 billion represents about 40 percent of Alphabet’s net profit last year, and less than 5 percent of the $102 billion in cash and short-term investments Alphabet had on hand last quarter.
GBPUSD Price Analysis – Continued Weakness or Nearing Oversold?
By Nick Cawley
Sterling is reeling against the US Dollar Friday after June UK retail sales missed expectations although May’s figures were all revised higher.
Earlier this week UK weekly average earnings remained flat while core year-on-year inflation – the central bank’s preferred measure – fell to 1.9% from 2.1%.
Brexit continues to make Sterling-negative headlines after UK PM Theresa May just avoided defeat on a series of custom union votes. The recent resignations of Brexit-heavyweights Boris Johnson (Foreign Secretary) and David Davis (UK lead Brexit negotiator) continue to fuel talk of a leadership challenge to the PM, a situation that would lead to further delays in the Brexit process.
GBPUSD continues to fell the full force of a strong US dollar, driven higher by a hawkish Fed outlook and continued monetary tightening.
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