There is good news from the budget bill, what impact will it have on the market?
The latest news came from the market yesterday. The Speaker of the U.S. House of Representatives, Pelosi, said that the budget expenditure plan has made great progress and it is expected that the Democratic Party's expenditure plan will be passed soon. Although the scale of the spending package will be reduced, the plan is still historic, and the House of Representatives is still expected to reach an agreement on the budget bill before this weekend.
It can be said that this news is good, because at present the most serious part of the domestic struggle in the United States lies in this-on how to reach a consensus on the expenditure plan, it can be said that the game has entered a fever. Obviously, the initial spending plan was very unfriendly or even harsh for large domestic companies in the United States, because the excessively high tax rate will greatly reduce the interest rate of these companies, which is completely unacceptable for these companies; however, the United States is capital To establish a country, companies can achieve their own goals by funding or even controlling congressmen. Therefore, we have seen that many congressmen in the United States have come forward to oppose the initial spending bill. Of course, the most sensitive issue is the corporate tax rate, but how can political games be played? Going straight like commercial negotiations obviously requires more skill. Therefore, we can see that the reasons for the opposition of the legislators are very strange. If they say things with some reasons that are not reasons, it gives people a sense of violation, but the ultimate goal is to modify. Corporate tax rate; therefore, when a consensus is reached on this sensitive issue, the bill will move forward. Only then will House Speaker Pelosi release the above remarks. In fact, they are telling everyone that the negotiation is about to be reached. You can rest assured , The ones that should be let go, and the ones that should be passed, don’t waste time anymore, because the time is already very short...
Although everyone in Congress knows that time is rushed and in a hurry, when it comes to sensitive interests, these are not matters, because only when important clauses are reached can they be finally passed, and this is the true status quo in the United States. Of course, the Congressional Republican Party is very happy to see such a situation. On the one hand, it is constantly consuming time and delaying time. It is also consuming the trust of the American people in the Biden administration. Therefore, the longer it is delayed, the happier they will be, so that there will be midterm elections next year. There is a greater chance of getting more seats; on the other hand, if the infrastructure bill has shrunk significantly, it will be less likely to produce results. This is naturally very detrimental to the Biden administration, because the game has been played for so long and the results are so poor. People who have mistrust and complaints against the Biden administration will also think that the Biden administration is not competent and manage the United States, so they will turn their attention to the Republican Party again. Anyway, as long as it is unfavorable to the Democratic Party, the Republican Party will think of various ways to do it, and the battle will be incompatible and fierce.
Looking at the technical side, to put it simply, although the US dollar index rebounded yesterday, the trend was also relatively mild. This is actually a shocking market and has not formed an effective reversal, so we can only look at the current situation with shocks. The market should not be too bullish or bearish too impulsively.
At the operational level, combined with the overall situation, the school believes that today’s fluctuations are more likely to be maintained. Therefore, when the rising market is exhausted yesterday, it is not ruled out that the falling market will go out again. At the same time, we must pay special attention to observe whether it will hit a new low today. Although the market is mostly volatile today, the operation idea is still mainly short selling, corresponding to non-US currencies, naturally it is better to choose a low price for reference!
【Trading straregy】:
EUR/USD:
To sum up, today's dollar index is likely to continue to decline, and corresponding to the European and American markets, you need to find opportunities to do more. Combining the board to give the following suggestions, refer to the operation as appropriate, and wet warehouse:
Hold yesterday's 1.1620 buying position, place the stop loss at 1.1620, and continue to look at 1.1640, 1.1660, and 1.1680.
USD/JPY:
Today's second operation currency pair, choose the United States and Japan to trade. The trading idea is also based on low and high prices, but you must try to choose valuable points for the layout; give the following suggestions, refer to the operation as appropriate, and wet warehouse:
Buy in the 113.55-113.65 range, stop loss 20 points, target 113.85, 114.05, 114.25.
gold:
Regarding the trend of gold, it was emphasized in today’s video that we need to find opportunities to do more. The advice given at that time was to buy near 1777 and wait for the market to pull back. But from the current situation, there is no such opportunity. Now, because gold has directly begun to rise, the intensity is not small.
