Tuesday, July 22, 2014

Tuesday, July 22, 2014

Summary: 

·         Depending on your time frame, the Monday market was choppy, with a bias toward the upside for today's trading. 
·         CPI (consumer Price Index) may give some pause as the Federal Reserve attempts to manage through a rising consumer inflation and debt liquidation (except for the USA federal government).
·         Companies around the world are moving to trade with China directly rather than trading through the US dollar.  Swiss National Bank (SNB) and the People's Bank of China just agreed to directly trad as much as 150 billion renminbi over the next three years.  This is just admissions by the world, that China is due to remove the US dollar as the reserve currency for trading, and if the pace of agreements continue, the demise of the dollar as a reserve currency will be sooner rather than later. 

·         No surprises (that I know of) on the geopolitical front.  That suggests Europe's stock market recovery overnight will hold through NY's opening, and likely to be a day where price climbs the wall of worry.  However, we are in summer trading months, and one would expect volatility to be low.   

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