11/06/2018
Good morning !
The next trading week will be rich with big politics, crucial monetary policy decisions and three-bull-head economic news.
The two most important events obviously are the Interest Rate Decision, the FOMC Economic Projections and the Statement followed by a Press Conference on Wednesday, 13 June, and the ECB Interest Rate Decision followed by a Press Conference on Thursday, 14 June.
The chart for the Interest Rate Decision, the FOMC Economic Projections and the Statement is for 13 June, 2 PM, Washington. Cardinal signs on the angles with Venus, the ruler of the hour, also in a cardinal sign signal a change. She is in the last degree of Cancer before entering into Leo, another argument for a change. The Moon is a degree away from the New Moon in Gemini, in the sign, which, according to several authoritative sources, rules over the US, signaling the end of a certain process and the beginning of a new one. The market expects a hike. In my opinion, the chart supports it.
The chart for the FOMC Press conference is for 2:30 PM. Very little has changed in comparison with the previous chart. Mercury has taken over the lordship of the hour. It is in Cancer, a cardinal sign. It is fast in motion, but rules the declining ninth house and the declining unfortunate twelfth house. Cardinal signs argue for changes and Mercury rules the language. We can expect some fresh nuances in the language and some relatively hawkish comments, but all mixed with tint of caution. Mercury rules the declining houses and is less than 5 degrees of arc away from the opposition of retrograde Saturn.
The chart for the Interest Rate Decision, the ECB Deposit Facility Rate and the Marginal Lending Facility is for 14 June, 1:45 PM, Frankfurt am Main. The Market does not expect any changes and retrograde Saturn as the hour ruler supports such sentiment. The chart for the ECB Press conference is for 2:30 PM. Cardinal signs are on the angles, apparently supporting the market expectations that the ECB could signal a change in its monetary policy. The Euro rallied last week, for the traders were betting that the ECB would signal an exit from the Quantitative Easing. Unfortunately, the chart does not provide a clear answer. On the one hand, cardinal signs on the angles and the Moon in her own house of Cancer, a cardinal sign, argue for a change in the monetary policy, on the other hand, the hour ruler is retrograde Saturn, the most conservative planet, which do not like changes. Retrograde planets usually promise something, keep you excited but seldom deliver the promise. The Moon is about 3.5 degrees of arc away from the opposition of Saturn and Saturn will turn direct in 3 months. These indications point to the middle of September when the market expects an exit from the Quantitative Easing. However, it is not likely that there will be a clear language when the Quantitative Easing will end. We expect that any signal of exiting the QE, if any, will be conditional and not straightforward.
The chart for UK Manufacturing Production (Apr) is for 12 June, 9:30 AM, London. In the chart, Leo is rising and Mars is the hour ruler. Mars is slow in the motion, under the horizon. The Moon has just separated from the opposition of Jupiter, the lord of the declining ninth house and the unfortunate eight house. The analysts expect a 0.3% increase on a monthly basis. In our opinion, the chart is slightly bearish. We expect the same or slightly worse readings.
