LTG Goldrock Reviews: It is time for Draghi to go!

The European Economy is in serious strife and the ECB will this week need to announce a "shock and awe" style Quantitative Easing, US style money printing program.  But sadly they won't.

Mario Draghi and the ECB has always been too slow, too reactive, it's lacked the real ticker and guts to get on the front foot like the US did and tackle what is now a diabolical challenge. Draghi and the ECB has essentially stuck its head in the sand and ass in the air and "hoped". Hoped its baby steps will lead to an improvement, it hasn't.
Virtually every measure the ECB has put in place has not been enough. Draghi only days before the 2012 Olympics in London said in a press conference. "We will do whatever it takes". I would say to him you have not done what it takes Mr Draghi, you have failed and it’s been 2 years since the Olympics and Europe is worse off now than it was 2 years ago. Thanks for your efforts but it's time to go. Resign or be sacked!

Draghi and the current committee have had long enough, they have been the ones at the helm and Europe is arguably in worse shape now than it was 3 years ago. It's time for a new coach. Draghi and his committee have shown they don't have what it takes, their measures have been far too reactive and slow and whilst many criticise the US Fed for its QE programs over the past few years, it’s worked. The US has gone from over 10% unemployment to 6.1%, its growth rate has gone from 0% to an annualised rate of currently around 4% and the economy has improved to the point where financial markets are speculating on an interest rate rise. And all through the same time period the ECB has stuffed around and promised plenty and delivered very little. In fact they have contributed to the disaster Europe currently faces, years of living in a society where standards of living are dropping, kids have little opportunity for work, the chances of a university education are less and poverty is an ever growing reality for many.

Extract: LTG GoldRock Insider Report Monday the 1st of September 2014

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Where will the bears likely attack the Aussie Dollar? #LTGGoldrock

The Aussie Dollar is one of my least likely currencies to trade simply because there are currencies such as the US Dollar and Kiwi Dollar that have offered more volatility in the past few months. BUT the volatility is likely going to return to the AUD and the sellers could attack when the price gets below the 200 Day Moving Average on the Daily Chart. You can see from the snap shot below there are some support levels around the 0.92 level but under 0.9177 there is far less support and this also coincides with the 200 Day Moving Average on the Daily Chart which is the red line.

LTG GoldRock Reviews the latest on the Aussie Dollar #LTGGoldrock 

I did warn traders last week about the Yen.

The Yen has risen in value the most in a month on the back of geopolitical tensions and stock market volatility. Even though the Bank of Japan continues to print staggering amounts of money to prop up its economy. I warned in this report last week about trying to get long on the Yen when negativity is in the air on stocks and geopolitical tensions are rising.
Currently there is a war in Iraq, Syria, Ukraine and the deadly battles between Israel and Hammas don't seem to be going away either. I doubt an overnight cease fire between Hammas and Israel will hold as both sides seem hell bent on their demands and no ceasefire has held true so far, so why should we expect this one to hold.
The Yen and Swiss Franc have the potential to gain strength in the short term so just be careful in the coming week or so trying to play the Yen and Swiss Franc short. As I mentioned last week I personally do not trade the Yen at all because of its unpredictable volatility.

The US Fed says the magic money printing press will stop soon.

We've seen the US Fed wind back the amount of money it has been magically printing from $85 Billion a month to $35 Billion a month since December last year and in Wednesday’s monthly minutes the Fed said,

"Participants generally agreed that if incoming information continued to support its expectation of improvement in labor market conditions and a return of inflation toward its longer-run objective, it would be appropriate to complete asset purchases with a $15 billion reduction in the pace of purchases in order to avoid having the small, remaining level of purchases receive undue focus among investors. If the economy progresses about as the Committee expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting."

This should be around the same time financial markets begin to factor in higher interest rates in the US in the coming 12 months as usually the speculation rally begins 12 months out from when the rates actually go up.

The US Dollar didn't get a boost from this news overnight but if the economic data continues to improve it will only be a matter of time.

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US Non-Farm Payrolls data comes a day early.

The first Friday of every month is the day the Labour Department in the US releases its monthly official unemployment report but due to the July 4th national holiday tomorrow the official unemployment data will be released today at 10.30pm AEST.

If last night’s private ADP employment report is anything to go by the official data tonight could surprise to the upside by quite a bit. The ADP private jobs report Wednesday showed that the US economy added 281,000 jobs in the month of June which is well above the market estimates of around 210,000 to 215,000. The US Dollar rallied on this news but I will remind you that on the odd occasion we have seen the private and official jobs data in the past be vastly different.  But overall it is generally a decent guide and my sensors are telling me to watch for a better than expected number tonight.

The US Dollar rose Thursday simply because of expectation of a pickup in the US economy which would mean the US Fed may need to change its stance on when they plan to raise interest rates. One jobs number won't change the Fed's mind but a number of solid months of jobs gains will certainly get their attention and the speculation rally could very well begin in September or October. If the US did create over 200,000 jobs in June that will mark the 5th consecutive month of jobs numbers over 200,000 and it would be the best streak of jobs numbers since the year 2000.

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