Thursday, May 5, 2016

Global Headwinds Remain and #Brexit Real Risk

News
Britain's upcoming referendum on the European Union will affect the Euro, British Pound, and German Bunds. These markets, in turn, affect the flow of capital to the United States.  Risk-aversion or risk-taking capital flow influence the US dollar, US stocks, US bonds, gold, and commodities. In other words, the suggestion that Brexit vote presents no risk to the United States is either economic incompetence or politically-motivated. The comment that global headwinds appear to have waned, a trend clearly refuted by the Economic Activity Composite (EAC) and business cycle, its likely that smart money stopped reading after Brexit no risk.

Headline: Fed's Bullard says global headwinds appear to have waned, Brexit no risk

(Reuters) - Global headwinds that have partly prevented the U.S. central bank from raising rates again may have dissipated and Britain's upcoming referendum on the European Union should not affect the U.S. economy, St. Louis Federal Reserve President James Bullard said on Thursday.

"International influences...appear to be waning during the first half of 2016," Bullard said in a speech at an event in Santa Barbara, California.


more

----------------------------------

Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.