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The North Korean situation flared up again with fresh threats from their leader, and while the markets have taken these types of threats in stride before, there will be some anxiety that affects risk sentiment.
It could be a very volatile week ahead as the market deals with factors that could slow US economic growth in the short term.
This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Thursday, May 18, 2017. In turn this could trigger a wave of soybean and corn selling among Brazilian farmers as their goods are prices higher in local currency terms. Developing… July Soybeans last trade 9.55 (-21’0) July Corn last trade 3.65… Read more.
The most important developments this past week were a market-perceived delay in the timing of the next US rate hike, another failed rally in the dollar, and upside breakouts in gold and silver off the latest wave of US/Chinese trade war fears.
It figures that just when it appeared as if positive equity market action and significant weakness in US Treasuries were about to confirm growth in the US economy, the US economic numbers turned sour.
US economic data continues to be disappointing, Trump and the GOP are trying to do everything at once, and they appear to be putting off tackling fiscal spending and tax reform in favor of wading into the quagmire of health care reform.
The outlook for the global economy and commodity markets in general continues to improve, but some might fret over the looming FOMC rate decision, while others might be concerned over the prospect of a firming dollar in the event the Fed does make a move to hike rates.
We are not sure if the signals being thrown by Treasuries this week are a sign of a longer term change or if we are “putting the cart before the horse.”
We were a little surprised with the trading action over the last week.