Euro slides after ECB; pushes up dollar to 7½-month high

European Central Bank left its key interest rate unchanged

Euro Area Interest Rate  | Data | Chart | Calendar | Forecast


source: tradingeconomics.com
CURRENCY INVESTORS key interest rate unchanged  The ECB held its benchmark refinancing rate at 0 percent on July 20th, as widely expected, and confirmed the net asset purchases are intended to run at the current monthly pace of €60 billion until the end of December 2017, or beyond, if necessary. Policymakers said that economic and monetary analysis confirm the need for a continued very substantial degree of monetary accommodation. Interest Rate in the Euro Area averaged 2.10 percent from 1998 until 2017, reaching an all time high of 4.75 percent in October of 2000 and a record low of 0 percent in March of 2016.



key interest rate unchanged

ECB Leaves Monetary Policy Unchanged

The ECB held its benchmark refinancing rate at 0 percent on July 20th, as widely expected, and confirmed the net asset purchases are intended to run at the current monthly pace of €60 billion until the end of December 2017, or beyond, if necessary. Policymakers agreed that economic and monetary analysis confirm the need for a continued very substantial degree of monetary accommodation.

Excerpts from the Introductory statement to the press conference by Mario Draghi:
Our monetary policy measures have continued to secure the very supportive financing conditions that are necessary to make continuous progress towards a sustained convergence of inflation rates to levels below, but close to, 2% over the medium term. The incoming information confirms a continued strengthening of the economic expansion in the euro area, which has been broadening across sectors and regions.
While the ongoing economic expansion provides confidence that inflation will gradually head to levels in line with our inflation aim, it has yet to translate into stronger inflation dynamics. Headline inflation is dampened by the weakness in energy prices. Moreover, measures of underlying inflation remain overall at subdued levels. Therefore, a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to gradually build up and support headline inflation developments in the medium term. If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, we stand ready to increase our asset purchase programme in terms of size and/or duration.

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DOLLAR LOWER  The dollar weakened against a basket of the other major currencies on Wednesday after Federal Reserve Chair Janet Yellen

DOLLAR LOWER AFTER YELLEN SAYS INFLATION IS KEY UNCERTAINTY

DOLLAR LOWER AFTER YELLEN SAYS INFLATION IS KEY UNCERTAINTY

DOLLAR LOWER  The dollar weakened against a basket of the other major currencies on Wednesday after Federal Reserve Chair Janet Yellen

FOREX INVESTROS BUZZ  DOLLAR LOWER  The dollar weakened against a basket of the other major currencies on Wednesday after Federal Reserve Chair Janet Yellen reiterated that the U.S. central bank will stick to a gradual approach when raising interest rates.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% to 95.32 by 08.49 AM ET, not far from the nine-month low of 95.22 plumbed in late June.

In prepared remarks released before her testimony to the House Financial Services committee, Yellen said the Fed is likely to unwind its stimulus despite low inflation.



DOLLAR LOWER

 

“The Committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to achieve and maintain maximum employment and stable prices.”

Her testimony to the Senate Banking Committee will start at 10:00AM ET.

Yellen gave no clear indication of whether the Fed would raise interest rates a third time this year.

The Fed chair also emphasized that inflation is below target and noted that it is a particular “uncertainty” that could affect monetary policy.

USD/JPY was down 0.74% to 113.06 following the remarks, well below the four-month high of 114.49 set on Tuesday.

The euro was little changed against the dollar, with EUR/USD at 1.1469 after rising to a 14-month peak of 1.1489 overnight.

The Canadian dollar was steady against its U.S. counterpart, with USD/CAD at 1.2915 as investors awaited the outcome of the Bank of Canada meeting later in the day.

Many analysts think the BoC will hike interest rates for the first time in seven years after recent hawkish remarks from senior bank officials.

Meanwhile, sterling extended its recovery from two-week lows, with GBP/USD climbing 0.38% to 1.2896 after the latest UK jobs report showed that the jobless rate fell to a 42-year low in the three months to May, but pay growth continued to lag behind inflation

The pound weakened in early trade after Bank of England Deputy Governor Ben Broadbent said in an interview published on Wednesday that he is not ready to raise interest rates just yet.

The remarks indicated that the BoE is now almost certain to keep rates on hold at their current record lows at next month’s meeting.

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Google Stock Set to Test The Alphabet Inc (NASDAQ:GOOGL) stock chart is under fire as the European Commission

Google Stock Set to Test This Extremely Important Key Metric

GOOGL Stock: Is an Opportunity Approaching?

Google Stock Set to Test The Alphabet Inc <span data-recalc-dims=(NASDAQ:GOOGL) stock chart is under fire as the European Commission" width="300" height="200" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/06/GOOGL-Stock-300x200-Small.jpg?resize=300%2C200 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/06/GOOGL-Stock-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESTORS  Google Stock Set to Test The Alphabet Inc (NASDAQ:GOOGL) stock chart is under fire as the European Commission (EC) laid down the law and fined the company $2.7 billion. This fine was attributed to the fact that Alphabet used its market dominance as a search engine to dole out illegal advantages to preferred merchants and products. Aside from the fine, Google has 90 days to rectify this illegal practice. This news sent shock waves towards Google stock investors and the share price took a hit, losing 2.47% on the day.

Damning news such as this always creates some sort of reaction, and it usually takes a few days for the dust to settle in order to gauge the true nature of the news that was just shelled out. I have taken, and will continue to take, my cues from the GOOGL stock chart as an indication of whether this investment remains compelling.

The following Google stock chart illustrates the predominant long-term trend.




Google Stock Set to Test

 

gugl

 

Using this trend line as an indicator is as simple as it was to create. As long as Alphabet stock is trading above it, I can only assume that the bull market is still in development, and therefore higher GOOGL stock prices can be expected.

This uptrend began its development in 2004 at $48.03. 13 years later, the price remains above it as Google stock is trading at $955.57, attempting to breach the $1000 barrier on a sustained basis.

The following Google stock chart illustrates the developments on the price chart that are suggesting a pullback to test the uptrend line may be in the works.

googl price chart

 

This GOOGL stock chart illustrates that, for the last two months, a head and shoulders price pattern has potentially been in development. This price pattern contains three peaks and a neckline. The second peak is the head and it is the largest. The first and third peaks are the shoulders and they are approximately of equal size. The neckline is the horizontal trend line that needs to be breached in order to confirm the pattern.

The relative strength indicator (RSI) highlighted on the price chart above has been exhibiting a negative divergence. This divergence is made apparent as the RSI indicator failed to make a new high while the Alphabet stock price managed to do so in June. This is an indication that momentum is slowing and not confirming the advance. This divergence is supportive of the head and shoulders price pattern that is in development, and lower prices can be expected once the pattern is completed.

 

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Negative Interest Rates: Not Here Yet, but Damage Already Being Felt

Russia Cuts Key Interest Rate To 9% 

Russia Cuts Key Interest Rate To 9%
United Kingdom 2 Year Note

BUZ INVESTORS Russia Cuts Key Interest Rate  The Central Bank of Russia has lowered its benchmark one-week repo rate by 25 bps to 9 percent on June 16th, while markets expected a 50 bps rate cut, saying it will continue to conduct a moderately tight monetary policy to maintain inflation close to the 4 percent target. Also, policymakers signaled the possibility of further rate cuts in the second half of 2017, as inflation expectations continue to decline amid a recovery in economic activity.

 

Information Notice of Bank of Russia:
Annual inflation stood at 4.1% in May keeping close to the target. Low inflation is gradually gaining sustainability. Price growth becomes more homogeneous in regions and for major groups of goods and services. Growth in prices for non-food goods and services continued to decline. Food inflation remains relatively low, although since the supply of last year harvest has become exhausted annual growth in prices for fruit and vegetables is currently rising. Annual inflation registered an expected short-term increase against this backdrop standing at an estimated 4.2% as of 13 June 2017.




Russia Cuts Key Interest Rate

As inflation showed a substantial slowdown, inflation expectations of both households and businesses declined considerably. This trend, however, may temporarily come to a halt amid the seasonal rise in prices for certain types of fruit and vegetables, considering that inflation expectations are sensitive to their dynamics. Inflation expectations should be lowered further to anchor inflation close to 4%.
Economic activity continues to recover. Household consumption is on the rise alongside with the growth in investment and industrial output. Currently, a moderate growth in consumer expenditures does not exert any inflationary pressure under increased supply of goods and services.
Considering the current recovery trends, the Bank of Russia has increased its GDP growth rate forecast to 1.3-1.8% in 2017. Economic growth is getting closer to its potential level. The situation in the labour market with the shortage of personnel in certain segments being evident is a constraint. In the sequel a GDP growth rate higher than 1.5-2% annually will be reached if structural reforms take place.
Short-term inflation risks connected with oil price dynamics have declined following the prolongation of the agreement to reduce oil production by oil-exporting countries. At the same time short-term risks arising from the implied harvest, its impact on consumer goods prices and inflation expectations are typical of this season.
Mid-term risks remain elevated. First, they are connected with the further dynamics of oil prices which under reached the agreements began to take shape at a lower level than expected. Legislative consolidation of a budget rule will contribute to mitigating this risk. Second, a higher structural deficit of labour resources can produce a situation when labour productivity growth rates will be left significantly behind the growth in wages. Third, a change in the household behaviour model connected with a substantial decrease in their propensity to save can be a source of inflationary pressure. Fourth, the sensitivity of inflation expectations to price changes for certain groups of goods and services and in the exchange rate dynamics is still present. Fifth, a possible tax manoeuvre can lead to a temporary acceleration in inflation.
Considering these factors the maintenance of moderately tight monetary conditions for a long period of time to anchor inflation close to its target will be required.
The Bank of Russia sees room for cutting the key rate in the second half of 2017. While making its decision hereinafter, the Bank of Russia will assess inflation risks, the inflation dynamics and economic developments against the forecast.

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Bank of England cuts Bank Rate to 0.25%

Bank of England maintained its key interest rate

Chart | Calendar   | TRADE NOW | GBPUSD

United Kingdom Interest Rate| Data | Chart | Calendar

BUZ INVESTORS Bank of England maintained  The Bank of England voted by five to three to keep the Bank Rate at a record low of 0.25 percent on June 15th, 2017, as widely expected. Policymakers showed concerns over rising inflation and slow pay growth and the effects on household spending and GDP. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to keep the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion. Interest Rate in the United Kingdom averaged 7.72 percent from 1971 until 2017, reaching an all time high of 17 percent in November of 1979 and a record low of 0.25 percent in August of 2016.




Bank of England maintained





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BoE Leaves Key Rate At 0.25%

The Bank of England voted by five to three to keep the Bank Rate at a record low of 0.25 percent on June 15th, 2017, as widely expected. Policymakers showed concerns over rising inflation and slow pay growth and the effects on household spending and GDP. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to keep the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

Excerpts from the BoE Monetary Policy Summary:
CPI inflation has been pushed above the 2% target by the impact of last year’s sterling depreciation. It reached 2.9% in May, above the MPC’s expectation. Inflation could rise above 3% by the autumn, and is likely to remain above the target for an extended period as sterling’s depreciation continues to feed through into the prices of consumer goods and services. The 2½% fall in the exchange rate since the May Inflation Report, if sustained, will add to that imported inflationary impetus.
In contrast, pay growth has moderated further from already subdued rates, even as the unemployment rate has fallen to 4.6%, its lowest in over 40 years.

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Negative rates seen cutting into Japan big banks' profits

Bank of Japan held its key interest rate

Chart | Calendar   | TRADE NOW | USDJPY

Japan Interest Rate| Data | Chart | Calendar | Forecast | News

BUZ INVESTORS Bank of Japan held  The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its June 2017 meeting, as widely expected. Policymakers also kept its 10-years government bond yield target around zero percent and offered a more upbeat view on private consumption and overseas economies. Interest Rate in Japan averaged 2.90 percent from 1972 until 2017, reaching an all time high of 9 percent in December of 1973 and a record low of -0.10 percent in January of 2016.

Bank of Japan held





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BoJ Leaves Monetary Policy Unchanged

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its June 2017 meeting, as widely expected. Policymakers also kept its 10-years government bond yield target around zero percent and offered a more upbeat view on private consumption and overseas economies. 

With regard to the amount of JGBs to be purchased, the Bank will conduct buying at more or less the current pace — an annual pace of increase of about 80 trillion yen.
The BoJ also determined by a 7-2 vote to purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will increase at an annual paces of about JPY 6.0 trillion and about JPY 90 billion, respectively. As for CP and corporate bonds, the Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively.
Excerpts from the Statement by the Bank of Japan:
Japan’s economy has been turning toward a moderate expansion. Overseas economies have continued to grow at moderate pace on the whole. In this situation, exports have been on an increasing trend. On the domestic demand side, business fixed investment has been on a moderate increasing trend as corporate profits improving.  Private consumption has increased its resilient against the background of steady improvement in the employment and income situation. Meanwhile, housing investment and public investment have been more or less flat. Reflecting these moderate increases in demand both at home and abroad, industrial production been on an increasing trend. Financial conditions are highly accommodative. On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) has been about 0 percent. Inflation expectations have remained in a weakening phase.

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Swiss National Bank SNB maintained key interest rate

Swiss National Bank kept its key interest rate

 Chart | Calendar   | TRADE NOW | USDCHF

Switzerland Interest Rate | Data | Chart | Calendar | Forecast

BUZ INVESTORS Swiss National Bank  The Swiss National Bank held its deposit interest rate at a record low of -0.75 percent on June 15th, 2017 as widely expected, aiming to stabilize the inflation and support growth. Policymakers said that the Swiss franc remains overvalued and that a negative rate and forex interventions are intended to rein the currency. The target range for three-month libor was also left steady between -1.25 percent and -0.25 percent. Interest Rate in Switzerland averaged 0.90 percent from 2000 until 2017, reaching an all time high of 3.50 percent in June of 2000 and a record low of -0.75 percent in January of 2015.




Swiss National Bank





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Switzerland Leaves Monetary Policy Unchanged

The Swiss National Bank held its deposit interest rate at a record low of -0.75 percent on June 15th, 2017 as widely expected, aiming to stabilize the inflation and support growth. Policymakers said that the Swiss franc remains overvalued and that a negative rate and forex interventions are intended to rein the currency. The target range for three-month libor was also left steady between -1.25 percent and -0.25 percent.

SNB press release:
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy, with the aim of stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB is to remain at –0.75% and the target range for the three-month Libor is unchanged at between –1.25% and –0.25%. The SNB will remain active in the foreign exchange market as necessary, while taking the overall currency situation into consideration. The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing pressure on the currency. The Swiss franc is still significantly overvalued.
The new conditional inflation forecast differs little from that of March. The SNB continues to anticipate an inflation rate of 0.3% for the current year. For 2018, the forecast has fallen slightly to 0.3%, from 0.4% in the previous quarter. For 2019, it now expects inflation of 1.0%, compared to 1.1% last quarter. The conditional inflation forecast is based on the assumption that the three-month Libor remains at –0.75% over the entire forecast horizon.

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BUZ INVESTORS Apple Stock Predictions 2020 It’s so easy to find forecasts about Apple Inc. (NASDAQ:AAPL). Almost too easy. Just type “Apple stock predictions 2020” into Google and see what comes up. People throw out all sorts

Apple stock set to snap its longest streak above this key chart level in 6 years

|Chart | Calendar   | TRADE NOW | AAPL

Apple stock set to snap its longest streak above this key chart level in 6 years

BUZ INVESTORS  Apple stock set to snap   Shares of Apple Inc. dropped Monday below a closely watched chart level, which could swing the short-term technical outlook to bearish from bullish for the first time in six months.

The technology giant stock AAPL, -3.24%  started sinking around midday on Friday, helping lead a broad selloff in the technology sector as investors appeared to cash in on recent gains ahead of the weekend. Losses were extended Monday, after Mizuho downgraded Apple on concerns that investor enthusiasm surrounding the iPhone 8’s release later this year is already baked into the stock.

The stock slumped 2.4% in midday trade, after shedding 3.9% on Friday. That put the stock on course to close below its 50-day moving average, which many technical analysts view as a dividing line between short-term uptrends and downtrends, for the first time since Dec. 8, 2016.




Apple stock set to snap

 

It looks like the tech selloff from Friday is spilling into the Monday morning trading session despite months of sharp gains.

Goldman Sachs turned cautious on the sector, warning investors that they should not consider tech as a safe haven, while some fear it has become a massive market bubble.

 

Business Description

Industry: Computer Hardware » Consumer Electronics    NAICS: 334220    SIC: 3571
Compare: OTCPK:(SNEJF), OTCPK:(PCRFY), NYSE:(KYO), OTCPK:(SHCAY), NYSE:(LPL), OTCPK:(ELUXY),

OTCPK:(HRELF), OTCPK:(APELY), OTCPK:(ACKAY), OTCPK:(CSIOY), NAS:(IRBT), NYSE:(FN),

NAS:(GPRO), NAS:(UEIC), OTCPK:(TCLHF), OTCPK:(BGOUF, OTCPK:ADPXY), NYSE:(KODK),

OTCPK:(VWIN), NAS:(VUZI) » details

Traded in other countries: AAPL.ArgentinaAAPL.AustriaAAPL34.BrazilAAPL.ChileAPC.GermanyAAPL.Mexico,

AAPL.Switzerland0JQ4.UK,

Headquarter Location: USA

Apple Inc designs, manufactures, & markets mobile communication & media devices, personal computers, & portable digital music players, & sells a variety of related software, services, accessories, networking solutions, & third-party digital content.

Apple designs consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Watch) and TV boxes (Apple TV), as well as a variety of services like Apple Music, iCloud, and Apple Pay. Apple’s products run internally developed software, and we believe this integration of hardware, software, and services often allows the firm to maintain premium pricing for its devices. Apple’s products are distributed online as well as through company-owned stores and third-party retailers.
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  Tiny Tech Stock  If you are looking for battered-down technology stocks with great risk-to-reward trade-offs, a small-cap technology play that is worth a deeper l

Key Indicator Shows Tiny Tech Stock Could Skyrocket

|Chart | Calendar   | TRADE NOW | FORCAST | STOCKS

Quantenna Communications Is Ideal for a Takeover

BUZ INVESTORS   Tiny Tech Stock  If you are looking for battered-down technology stocks with great risk-to-reward trade-offs, a small-cap technology play that is worth a deeper look is Quantenna Communications Inc (NASDAQ:QTNA).

QTNA stock is at the midpoint of its post-IPO range following its debut at $16.00 on October 28, 2016 and high of $25.45 in March 2017.

On the chart, Quantenna Communications stock is hovering around its 50-day and 200-day moving averages. An upside move could drive QTNA stock back towards $25.00 and above $30.00.

The global Wi-Fi market was $14.8 billion in 2015 and could expand to $33.6 billion by 2020. (Source: “Global Wi-Fi Market worth 33.6 Billion USD by 2020,” MarketsandMarkets, July 2015.)

Tiny Tech Stock

qtna

 

The tailwinds appear ripe for Quantenna Communications stock as the demand for faster and broader Wi-Fi solutions picks up steam.

Simply think back to the 1990s, when Internet users relied on the often slow and cumbersome dial-up connection, compared to the current 3G and 4G speeds.

My Fundamental Bull Case for QTNA Stock

Revenues have increased in two straight years and the positive trend is expected to continue into 2017 and 2018 as shown in the table below.

Quantenna Communications Revenues
2014 $66.86 million
2015 $83.77 million
2016 $129.07 million
2017 $182.93 million (Estimate)
2018 $239.41 million (Estimate)

(Source: “Quantenna Communications, Inc. (QTNA),” Yahoo! Finance, last accessed June 8, 2017.)

You will notice the revenue growth for QTNA stock is slated to decline from 55% in 2016 to 41.7% in 2017 and 30.9% in 2018, but don’t be alarmed. Growth rates tend to normalize to lower levels as a company grows.