Archives of “May 21, 2019” day

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Cable falls below 1.2700 as dollar holds firm

  
Analysis, Forex

GBP/USD extends drop to below 1.2700 now

GBP/USD D1 21-05

The dollar is trading higher at the start of the European morning session as it is advancing against the rest of the major bloc, with cable notably falling below 1.2700 to its lowest level since 15 January. Price now is contending with support around 1.2696 but given the trend, it’s hard to argue against the adage of ‘don’t catch a falling knife’.
As mentioned last week, the Brexit quandary looks like it will continue to run its course and with political headwinds still remaining, the argument continues to be that things should get worse for the pound before they get any better.
There is some minor support seen next around 1.2660-70 but at this stage, it’s hard to bet against any solid bounce in cable unless the dollar itself capitulates. Because buyers sure won’t get any help from the pound side of the equation, given the current Brexit situation.

New OPEC+ meeting dates reportedly being considered: 1-2 July or 22-23 June

  
Analysis, Crude

According to Energy Intelligence’s senior correspondent, Amena Bakr

OPEC

The original dates for the OPEC+ meeting in Vienna was scheduled for 25-26 June but it is believed that the Russian delegation has requested for the dates to be changed.

Hence, suggestion is that the meeting could be move to either of the two dates highlighted in the headline above. No firm decision has been made yet though, so just keep this in your back pocket for now.

Huawei not impressed with the temporary reprieve from the US

  
  Analysis

China state media report comments from Huawei founder Ren Ahengfei

  • says US’s temporary reprieve does not mean much for Huawei –
  •  says Huawei has made preparations regarding the latest US. actions
  • we have faced US restrictions since a year earlier
  • the issue is with the US government, not with US firms
  • US government is underestimating Huawei’s capabilities

Fighting words …

“Preparing for the next recession: 9 things you need to know”

  
Analysis, Economy

Doing a bit of a scan about and found this, might be of interest.

I am not familiar with Capital Ideas (the piece is on their blog) but its this is an interesting read.
  • With the U.S. expansion nearly 10 years old, investors may be wondering whether the next one is just around the corner.
  • In our view, we don’t believe a recession is imminent in 2019. Our research indicates it is much more likely that the next recession will be in 2020 or 2021. 
  • But economic cycles are notoriously hard to predict, and it’s never too early to be prepared for the next downturn.
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