How to deal the dollar next few days?

Discrepancies in the monetary policy of the Fed and the ECB are likely to lead to an increase in the dollar exchange rate and a decrease in the euro next week, making the dollar more attractive to profit-seeking investors.
On Wednesday the "three bigs" - Kuroda, Draghi and Powel will perform in Portugal and would shake the markets with some volatility, bringing to table good trading options.
On Thursday the Bank of England will keep the interest rate unchanged. The decision of the National Bank of Switzerland will be similar.
The US dollar index fell 0.14% at the end of the trading session on Friday to 94.80, after rising to a maximum in eleven months, to 95.13. Over the last week, the dollar index rose 1.33%, which was the largest growth in seven weeks.
More likely, the dollar will keep the good pace next week.

Gold gets cheaper after the dollar rises

Gold declined after the dollar appreciated against other major currencies as a result of the surprisingly good results of the historic meeting between Trump and Kim Chen Un.
The spot price of gold fell 0.2 percent to $1,297 per ounce, and the precious metal futures with delivery in August lost 0.1 percent to $1,301.50 per ounce.
The dollar has been a major driver of the movement in the price of gold and other precious metals lately. The reduction in geopolitical tensions, however, has an additional impact on the direction of the shiny metal, according to Daniel Hines, an analyst at ANZ.
The price of gold is at serious resistance at levels of 1300-1305, as well as support from Asian buyers when it approaches $ 1,290 per ounce.
For other metals, silver fell 0.3 percent to $ 16.83 and platinum was traded at about $ 903 per ounce.

50 Cent bets on VIX again

Do you remember the mysterious trader "50 Cent"? The guy who, for nearly a year, has consistently bet on put options on the VIX volatility index and, though for a long time shadowed, ultimately made a profit of tens of millions of dollars?
This might be a good example of how patience and persistence of trading, coupled with a good commercial strategy, reward the player.
Well, it looks like the mysterious trader is back to its favorite instrument again.
After profiting about $183 million and long absent, or rather awaiting, from the volatility index market, the trader made its bet again.
It was placed on Tuesday with the purchase of 50,000 call options with $28 bet on the volatility index at a level of 0.50 and 0-51 cents. On Wednesday morning, a similar deal was made again, but this time for 0.49 cents.
Of course, there are some doubts about whether the bet is made by the original "50 cent" and not by an immitator. So it's good to have one mind on S&P 500.

Russia is raising its oil production

Oil prices dropped somewhat, as a result of negative forecasts from JPMorgan late last week that non-OPEC countries are expected to raise their production seriously in 2019.
They will be led by the United States, along with Russia, Brazil, Canada and Kazakhstan, the US investment bank said.
In addition, downward pressure on oil prices also revealed that Russia's production in May was over 11 million barrels a day, or above the country's target of producing less than 11 million barrels.
Next, the appreciation of the dollar, pending the Fed's decision to raise the interest rate again, also has its impact on the price of "black gold".
The number of oilfields in the United States has risen to 862, according to Baker Hughes. This is their highest level since March 2015. This suggests that US production, which is already at a record of 10.82 million barrels per day, may continue to rise in the future.
Oil prices, however, have changed their negative course, following comments by the oil minister of Iraq, that oil-producing countries should not be pressed to produce more oil.

Professional Trading Account by ActivTrades

My favorite broker ActivTrades provides its Professional Clients with great conditions for Professional trading.

Check your eligibility for Professional Trading Account here here and you will benefit from:

FSCS Protection + Enhanced Insurance
ActivTrades' additional insurance protects your capital up to 1,000,000

Flexible Leverage
Enjoy the advantage with a leverage of up to 1:400 when trading with ActivTrades

Individual News and Analysis
Exclusive technical analysis from leading experts

Segregated accounts
Your funds will be kept in a separate account

Protection of Balance
ActivTrades will reset the balance to zero if it becomes negative

Dedicated Account Manager
Get professional help in your trading.

For more information, click here.

Nasdaq is down and everyone is fleeing from FANG companies

US indices traded mixed yesterday, which is definitely a cause for concern. Technological Nasdaq Composite and Nasdaq 100 continued with their decline after new record highs reached, while Dow Jones rose.
The Nasdaq 100 Index declined for the first time in five days, with investors dumping and selling shares in the FANG group and targeting the stocks of the banking companies.
Interest rates on 10-year US bonds continue to keep below the psychological limit of 3%, but according to market observers the expected almost 100% rise in interest rates in June begins to weigh above the market and indices.
The Stoxx Europe 600 Index returned its earlier earnings yesterday after disappointing factory orders in Germany. The euro appreciated as a result of rising expectations for the end of monetary stimulus in the euro area.

The world's biggest hedge fund: the 2019th will be hard for the economy

When the founder and head of the world's largest hedge fund, Ray Dalio, speaks, the market is silent and listening. And what Dalio says should bother all market players.
According to the head of Bridgewater Associates, next year will be difficult for stock markets and the economy. He is bearish for almost every asset class, Dalio commented in a recent letter to the clients of the fund he manages.
2019 seems to be a dangerous period for the economy, Dalio says.
Earlier in the month, the hedge fund manager said he was at the forefront of the stock market and this is a problem.
The company, which currently manages assets worth about $150 billion, believes the US bond yield curve should remain flat, in a range where oil reached $62 a barrel and the dollar fell 3.5 percent against the rest of the major currencies.
2019 seems to be a dangerous period for the economy when the financial stimulus is over, and the Fed's interest rate cycle will find its peak, Dalio said in the letter to the hedge fund investors. Given the fact that financial markets are ahead of what is happening in the real economy, the danger to investors is already present.

The ECB meeting is approaching and change may be significant

The ECB is expected to take test trials on the outcome of its monetary policy at its next week's meeting, which may end with publicly announcing the plans when we will see an exit from this policy.
It is very likely that ECB President Mario Draghi will use the June 14th summit in Latvia as an opportunity to discuss the end of the buy-back program, according to market observers.
Currently, bond purchases are scheduled to take place at least until September. However, there is no more clarity about the time of their end, which brings serious uncertainty among market participants.
And many market observers see a good time at the ECB meeting to "prepare the ground". Dearly, it is possible to use the press conference to signal that a decision on the end of the stimulus could come at the July meeting of the bank.
Even if the topic is concerned, there would be serious progress on the way out of the incentives, comment market observers.
The June decision may also be accompanied by new economic forecasts on the euro area by the ECB, which also give some signals to investors. If the forecasts are good, investors may decide that we will see a recent exit from the incentives.

The gold and platinum fall

Despite the observed return of the dollar against other major currencies, gold and platinum fell. The yellow metal dropped to $1,290, where it now finds strong support.
However, according to technical analysts, if gold falls below $1,290, we can see a further decline in the price of precious metal to $1,280 and further to $1,270.
Platinum has returned below the psychological limit of $900, and now the point is, will the level of support remain at $890 unpierced.
If the metal returns over $900 and moves away above the level, which is likely to be a strong drag area, we can see a further appreciation of the metal.
But to a large extent, the movement of precious metals will continue to be predetermined by geopolitical factors such as trade relations between the US and China, as well as the direction of the dollar's movement relative to other major currencies.

US producers increase their oil production

The US oil producers is clearly the most satisfied group of high oil prices. The cost of raw materials declined on Friday after it became clear that OPEC and Russia could increase their production. And the latter may be the result of US production growth in an environment of rising production.
US crude oil lost about 1 percent of its value to $66.39 a barrel late Friday, while the Brent fell 0.6 percent to $77.07 and was already more than $3 below its highest since late May.
US oil production is growing at a good pace and weekly data show no signs of slowing down, according to Seaport Global analysts, adding that growth is mainly driven by Texas and New Mexico.
US oil production rose 215,000 barrels per day to 10.47 million barrels per day in March, according to the US energy ministry. Production in Texas rose 4% to 4.2 million barrels per day, while that in New Mexico - by 6.5% on a monthly basis.
Increasing production by US companies in the US is a reality when the market increasingly talks about Russia and OPEC being able to override accepted production constraints. Namely the latter were the basis of the strong rise in oil prices to a maximum of four and a half years.