New York City is Now Epicenter of Coronavirus COVID-19 Outbreak in the USA

US Inflation Rate Drops Fueling Speculation of a Fed Rate Cut

By Glenford S. Robinson

It is pretty much a far-gone conclusion that the Federal Open Market Committee (FOMC) chaired by Mr. Jerome Powell will slash interest rates at the end of this month July 2019. The US annual inflation rate tumbled to an undesirable low of 1.8 percent in May 2019 from a five-month mini run in the previous month.

The 1.8 percent recorded in May 2019 came in a tad below the forecasted 1.9 percent. The FOMC president Mr. Powell was questioned on Capital Hill today by various members of congress about the likelihood of a fed rate cut in July 2019. The FOMC president tried dancing around the questions, but eventually had to give into questions about the Feds cutting rates, saying “yes” to a congressman who asked him whether or not his committee was considering cutting rates. He later tried his best not to give any more clues as to whether or not his committee was in fact going to cut rates.

A Fed rate cut of about 25-basis points is more in-line with the hints the Fed Chair was signaling. So, it seems that there will be a rate cut but not a very large one. To get the inflation rate back up to 2% from 1.8% does not justify a rate cut more than 25-basis points; any rate cut larger than 25-basis points would be unnecessary.

What does this mean for the EUR/USD currency pair? Well, one would expect that the Euro would be on a rampage running higher. In fact, that is exactly what is currently happening as of writing. The USD has been put under pressure by all major currencies so far today.

Although the European union is considering implementing negative interest rate at the end of July, the Euro is still putting major pressure on the USD. The current price of the pair as of writing is 1.1255, a tad below the high of the day of around 1.1264.

Traders are net long at 65% and net short at 35% which is telling us that this upward momentum by the pair could be a temporary one from a contrarian point of view. Therefore, a strong pullback could be lurking around the corner.

The bottom line is that the Eurozone interest rate is currently zero percent, which tells us that investors are not necessarily too eager to buy a currency that is currently sporting zero interest rate and possibly negative interest rate in the-not-so distant future.  So, a pullback seem likely before the weekend or early next week.


5 Minute Millionaire Money Mentor

A. Ever heard of Tai Lopez?

B. He’s looking to personally mentor a small group of people to become ‘black belts’ with money.

C. Check out his video:

Wait! Wait! Free Bonus, Free Bonus: Don’t Open the link Yet.

First go to Youtube and Listen to the book called “Think and Grow Rich by Napoleon Hill.”

The book is free to listen to on Youtube. After you listen to some of the material in the book,

then you will be ready to learn how to make money with Tai Lopez’s 5 Minute Millionaire Money Mentorship program.

All my close friends, family, and professional colleagues are saying that the video at is worth the wait.

If I were you, I would read the book first. Your call!

Check Also

How To Use The Internet To Add More Streams of Income

I didn’t realize how much potential there is right now on the internet. I was also shocked to know about how easy it is to get started. It used to be so time consuming and expensive to start your own business.

New York Federal Reserve Adds Liquidity to Financial Markets to Quell Volatility!

China Promises to Cut Tariffs on 800 US Products Americans Now Have Jobs and Have …

US Economy Looks to Continue Good Performance into 2020, But 2021 Could Be Another Story

We should expect some degree of decline in 2021 especially if 2020 sees rapid growth, simply because the economy goes through boom and bust cycles. So, 2021 could be the year for the bust phase of the business cycle because 2020 showed us the boom phase of the cycle.

Inflation and Mortgage Rate Rise as U.S. Economy Picks Up Steam, Despite Moderate Levels of Volatility and Lackluster Retail Sales Numbers

The CBOE Fear Index otherwise known as the Volatility Index (VIX) dropped by 1.31 or 9.4% on Friday from 13.94 to 12.63. What does all this mean? Well, simply put, the VIX measures the fear level of stock investors.

Market Volatility and Global Economic Slow Down Could Cause Widespread Use of Cryptocurrency by Governments

Here comes the irony of the U.S. economy. This irony shows, that increase volatility, is at play. The first proof of this, screams out in the form of the Disappointing ISM Manufacturing PMI for November, which came in at 48.1% missing market forecasts of 49.2% and a previous reading of 48.3%.

Trade Deal Uncertainty Dominated Market Sentiment Despite Upbeat GDP Numbers

Global growth continues to decline as a result of the prolonged trade war, and with the December 15 deadline fast approaching, it’s unclear whether or not a limited phase-one deal for a new round of tariff can even be achieved, this year.

The U.S. Economy Improved in October, Housing Starts and Building Permits Data Show

The U.S. economy continues to show signs of improvement. It has been the third week in a row that we have seen positive economic numbers. This week’s offering provides us with positive releases such as the Housing Starts, Building Permits, Existing Home Sales, Manufacturing PMI, Services PMI, and Consumer Sentiment Reports.

Copyright © 2020 · All Rights Reserved · Mstardom Finance, a Subsidiary of Mstardom, Inc.

%d bloggers like this: