With a continuing resolution for $1 Trillion passed this week, which will fund the government for 5-whole months, there seems to be little consideration given to the disconnect between increase debt levels and slower economic growth. The chart below shows the growth of total debt as compared to GDP growth since 1966. Not surprisingly, as the system…
The US dollar is narrowing mixed as the employment data, and Fed speeches are awaited. Six Fed officials speak today, including Yellen and Fischer. Regional Presidents Williams, Rosengren Evans and Bullard also speak. It will be the first flurry of speeches since the FOMC meeting. The market’s take away from the FOMC statement that was little changed was the characterization of soft…
With all eyes on crude, following last night’s mini flash crash which sent WTI lower by 3% from just above $45 to under $43 in under 10 minutes, equity markets, generally quiet overnight, have taken on a secondary importance ahead of today’s key risk event, the April payrolls report (full preview here). In global equities,…
Previous: Trading on the Euro/dollar pair closed up on Thursday by exactly 100 pips. After leaving its 7-day range, the Euro appreciated against the dollar as far as 1.0983. The sense of euphoria at breaking the 1.0940 level blinded buyers to the growth in US 10Y bond yields and the drop in gold quotes. Buyers…
Oil sold off in what has become an epic collapse and approaching the price area where shale output could be in trouble. After weeks of oil failing to see substantial draws in U.S. inventories, demand fears and technical pressures began to build. The selloff in part was because the return of OPEC members in Libya…
There seems to be no end in sight just yet for silver, which continues to remain beaten down and unloved, and dragging its more illustrious cousin gold down with it. As I explained in my analysis of earlier in the week, the key technical level on the daily chart was in the $16.90 per ounce…
Copper: Red Metal Suffers Worst Decline in 19 months Following a recovery last week, Copper prices plunged once again this week to mark three weeks of decline over the last four. The catalyst behind the decline was a mixture of weak China data, rising copper inventories, and a hawkish FOMC. The latest manufacturing data out…
