News 

Ivan Martchev’s 2018 predictions: Gold will sink, and the dollar will rally

“Read: How palladium and lumber defied the 2017 commodity slump Why did the dollar decline in 2017?” writes Ivan Martchev for marketwatch.com. I think a decline in gold to below $1,000 is likely to happen if my dollar forecast for 2018 works out.Bigger mountains of debt cannot produce an accelerating economy in China, which is a sign of a busted credit bubble (see chart).Thinking that gold will decline in 2018 is derived directly from the expectation that I think the dollar is likely to rally in 2018, which I believe…

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Here’s what George Clooney owed in taxes after he gave his friends $14 million in cash

“Thus, assuming all of the above, Clooney owed $3,421,600 in gift taxes on top of the $14 million he gave away” writes Rob Wile for businessinsider.com. Since Clooney gave 14 gifts, he can deduct $196,000 from the total tax bill.That year, the top gift tax rate was 40 percent.This is the amount of money an individual can give during their lifetime and pay no gift tax.That’s the level at which an individual can give someone money in one year and incur no gift tax. Source: businessinsider.com Share This:

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HSBC’s currency expert gives his best trades for 2018

“What we’re saying is, where is the central bank not going to have forward guidance?” writes Natasha Turak for cnbc.com. Where’s the central bank just suddenly going to go ‘we’re going to raise rates’?. Bet on the Aussie dollar.Where is the central bank denying — and then going have to face — the reality?. There’s money to be made in currencies whose central banks will make an unpredictable move next year, said David Bloom, HSBC’s global head of foreign exchange strategy. Source: cnbc.com Share This:

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News Regulators 

Dollar drops as Fed raises rates, leaving 2018 forecast unchanged

“Follow live: Fed decision and Janet Yellen press conference” writes Anneken Tappe for marketwatch.com. The U.S. dollar dropped against its major rivals after the Federal Reserve hiked interest rates by 25 basis points on Wednesday and left its forecast for future rate hikes and inflation unchanged.A news conference, which will be the last of current chairwoman Janet Yellen before she hands over the reins to Jerome Powell, will follow at 2.30 p.m.The rate hike had been much anticipated by traders and was priced almost entirely into Fed funds futures, which…

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News Regulators 

Dollar adds to losses after CPI report; Investors await Fed decision

“Then, the November inflation report showed a slowing of core consumer price growth, which exclude volatile items such as gasoline, while headline inflation was in line with forecasts” writes Markets Reporter for marketwatch.com. Traders were also looking ahead to the Federal Reserve decision later in the day at 2 p.m.Down under, the Australian and New Zealand dollar are also stronger on the back of the falling greenback. Source: marketwatch.com Share This:

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Crypto Markets News 

Multi-Billion Dollar Japanese Tech Conglomerate to Pay Employees in Bitcoin

“GMO Internet Inc., a multi-billion dollar Japanese technology conglomerate, will process salaries of its 4,710 full-time employees in bitcoin” writes unknown author for cryptocoinsnews.com. At first, GMO Internet will limit the amount of bitcoin employees can receive on a monthly basis to 100,000 yen, around $881.At the time, GMO emphasized that the Japanese cryptocurrency market could reach a market valuation of 1 trillion Japanese yen (JPY) in the next few years, expressing their optimism towards the exponential growth rate of the Japanese cryptocurrency market.In October, GMO revealed the company’s long-term…

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Traders are starting to question whether the US dollar will continue to rally

“A net long position indicates that traders, collectively, are looking for strength ahead” writes David Scutt for businessinsider.com. This chart from ANZ shows net US dollar speculative positioning in the US dollar against other G10 currencies.Currency traders, as a whole, still expect the US dollar to strengthen in the period ahead.While the CoT report only captures positioning reported by the CFTC, not the entire market, it can be used to extrapolate broader views held by currency traders. Source: businessinsider.com Share This:

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BANK OF AMERICA: The dollar is set for a big rebound after a difficult year

“In contrast, we have been arguing that the US tax reform is a big deal and will support the USD in early 2018.”” writes Akin Oyedele for businessinsider.com. Tax cuts could boost annual gross domestic product growth by 0.3 to 0.4 percentage points over the next two years.Even the prospect of tax cuts hasn’t made the dollar more attractive to currency traders.Like Vamvakidis, Katzive also forecasts a rally in the dollar, although this may only prevail through the middle of 2018.Against a basket of G10 currencies, the greenback has lost…

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Crypto Futures News Oil 

Bitcoin mania could ramp up global efforts to dethrone the dollar, analyst says

“However, at the start of the month, U.S. regulators gave the green light for two of the world’s largest futures exchanges to list bitcoin futures” writes unknown author for cnbc.com. Bitcoin mania could prove to be the flashpoint for some of the world’s largest oil producing countries to make a major move against the dollar, according to one commodity analyst.Futures are derivatives, or financial instruments, that obligate a trader to either buy or sell an asset at a specified time and at a specified price.Such wild price swings have prompted…

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