Stay Up to Date with Robin's Market Updates

From 1 June 2018, live market updates from Robin will only be sent to subscribers via email.

To continue to receive the latest updates, please subscribe.

Tuesday, July 19, 2016

Market Awaits Draghi, Yellen and Kuroda`s Monetary Policies

The stock market is once again rallying on expectation of monetary stimulus from ECB president Draghi on 21 July (Thursday) and hyped-up speculation that BOJ Kuroda will resort to using what's called "helicopter money" , a convergence of unconventional monetary policy and fiscal policy , the monetisation of infrastructure stimulus that will likely take the form of big spending package at the next Bank of Japan policy meeting scheduled for 28-29 July.Ben Bernake has been in Tokyo 2 weeks ago and reportedly had lunch with Kuroda, followed by a meeting with Abe. These meetings has created much speculation of another `Bazooka` monetary stimulus in the offing.

Fed FOMC meeting scheduled from 26 – 27 July is not expected to raised interest rate, Yellen interest rates guidance into the next 6 months could turn the tide.

With this backdrop, the market is not expected to experience a steep correction until all the central bankers have their say. After the July month end, traders should be ready for a sharp correction in August.

Like the BREXT all over again its going to be `Sell On News’ with so much priced into the expectation of Central Bankers monetary stimulus this month.
All posts and charts are for educational and illustration purposes only

No comments:

Post a Comment