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Predicting S&P 500.

World stocks and bond yields are rising, lifted by the emergence of "Trump trades" as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits. Even with the controversy Trump has caused since he took office, financial markets are still willing to give him the benefit of the doubt. If we look on technical charts we can see the S&P is trading on the life time high. I am expecting the trend to continue with some smaller corrections in between.
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US equity valuations are quite stretched -- U.S. stocks are trading at the upper end of their historical valuation ranges -- investors have started to see the Trump administration's struggles to push through the healthcare overhaul as a sign he may also face setbacks delivering promised corporate tax cuts. I am expecting the correction to contnue for coming week.

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Housing starts which are a major indicator of the United States economy rose 3 percent from the previous month to a seasonally adjusted annualized rate of 1288 thousand in February of 2017, following an upwardly revised 1251 thousand in the previous month and beating market expectations of a 1.4 percent rise. It is the biggest rate in four months as construction of single-family houses hit a near 9-1/2-year high. High new home sales is indicating a optimistic economic outlook.

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Anticipating USD/JPY .

US dollar has been trading sideways with a downward bias since the start of the year amid a lack of clarity on U.S. President Donald Trump's economic policies. Forex market are pricing in a rate hike in Federal fund rates only after June 2017 FOMC meeting. As a result I am not expecting much appreciation of US dollar against JPY for next couple of months.
If we look at Japanese economy The Bank of Japan has left the interest rate unchanged at -0.1 percent at its January 2017 meeting, as widely e…
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Anticipating AUD/JPY

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on February 7th, as expected. While highlighting economic growth over the next couple of years will be around 3 percent, mainly boosted by further increases in resource exports, policymakers said inflation is expected to remain low for some time. So I am expecting the AUD to get stronger in coming months.
When we look at Japanese economy The Bank of Japan has left the interest rate u…
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Anticipating EUR/USD

Recently Trump officials have expressed concern about the strength of the dollar or, as Navarro complained, about other currencies being undervalued. The OECD confirms. Its models see the euro at nearly 25% undervalued, sterling almost 16.5% undervalued and the yen 11% under-valued. The Mexican peso, whose marked depreciation has been exacerbated by comments from Trump, is undervalued, according to the OECD, by 147%. I think we will see some appreciation of EUR/USD in February 2017 as the Fed is…
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In Euro area household consumption is the main component of GDP and accounts for 56 percent of its total use, followed by government expenditure (21 percent) and gross fixed capital formation (20 percent). Net exports of goods and services adds 4 percent to the GDP. Euro Area's gross domestic product expanded 0.5 % (QoQ) and 1.8 %t (YoY)r in the fourth quarter of 2016 which was better the market expectations. Among countries for which data is already available, GDP growth has picked up in France, Belgium, Latvia and Lithuania and was unchanged in Spain and Austria.

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USD/JPY to remain sideways.

I think the dollar is strong not because European, Japanese and Mexican officials want a weak currency, though some clearly do,but because of the incentive structure created by actual policy. In particular, the divergence of monetary policy, broadly understood, has arguably been the single-biggest force lifting the US dollar.
There is some anticipation of a more supportive policy mix. Fiscal policy has been neutral to a drag in recent years, but it has been clear since last summer that regardle…
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