Monthly Archives: December 2015
Equities Drop On ECB’s Lackluster Announcement
■ EUR/USD climbs to highest since early Nov’ as ECB refrains from broadening Q.E. program ■ European Equity drops on lack of Q.E. prospects ■ U.S. Nov Nonfarm at 211K, helping underpin Dec’ liftoff ■ USD and equity markets unimpressed by rising liftoff likelihood Following a somewhat long while of smooth sailing, markets regained…
Dollar Continues To Recover
The exaggerated response to last week’s ECB meeting continues to unwind. Draghi’s dovish comments and the strength of US employment data have helped keep the divergence meme front and center. The euro traded quietly in Asia before breaking down to almost $1.0800 in the European morning. There seemed to be only two news developments that had a…
Asian Markets Cautious On Chinese Economic Reports
Asian share markets were mixed on Monday as caution grew ahead of Chinese data, although sentiment for a Fed interest rate hike continued to be strong. Investors remained guarded ahead of a host of Chinese data due out during the week which are expected to point to a still sluggish economy. Trade figures should be…
BIS Warns The Fed Rate Hike May Unleash The Biggest Dollar Margin
Over the past several months, one of the biggest conundrums stumping the financial community has been the record negative swap spread which we profiled first in September, and which as Goldman we profiled first in September, “has been driven by funding and balance sheet strains, especially since August.” Today, in its latest quarterly report, the Bank of International Settlement…
Short-term Trading Idea FX EUR/USD – Bull Speculation: Renewal As...
Trading opportunities for currency pair: the euro/dollar jumped from 1.0518 after the ECB meeting and Draghi’s press conference. The euro/dollar and euro/pound on the weekly have formed a double bottom. The euro bulls won’t have the wind knocked out of them that easily. As things stand, there are two outcomes; the main one is the formation…
EU Session Bullet Report – Slow Start To A Busy Week
Over the past week, there were lots of important developments which the market has not fully digested yet. ECB delivered a rate cut, however the market was unimpressed as to the effectiveness of only this measure. As a result the EUR had its strongest day in 6 years after it advanced 462 pips in…
The Blindingly Simple Reason Why The Fed Is About To Engage In Po
Two weeks ago, when deciphering the FOMC’s latest minutes, the market surged after paying particularly close attention to an extended Fed discussion of a heretofore little known aspect of the Fed’s monetary policy decision making, namely its focus on r*, or the “equilibrium” growth rate. As Goldman then summarized, “minutes from the October 27-28 FOMC meeting indicated…
Is The Fed Finally Being Forced To Consider Main Street?
To help Main Street, the Fed simply needs to stop incentivizing speculation over investment and end policies that have shifted wealth and income to the top of the wealth pyramid. If there is anything about Federal Reserve policy that is now widely accepted as self-evident, it is that Fed policies have further enriched the super-rich…
Forex Week In Review – December 7, 2015
Last week saw an Atlantic divide with European markets (and Japan) falling whilst the major American stock markets managed small gains. In Europe over the course of the week, the FTSE was down by 2.2%, it closed at 6238.3; the Dax ended at 10752, down by 4.8% on last week’s close; the CAC was down…