ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
As the U.S. dollar index has steadily advanced this month, the relative strength of the Canadian dollar has perplexed me. The Canadian dollar has long seemed overplayed to me as a commodity-positive play given the country’s heavy dependence on the health of the U.S. economy – which I continue to assume will perform weakly in … Read more
By now, everyone has noticed that the inverse relationship between the stock market and the U.S. dollar has broken. For December, the U.S. dollar index is up a healthy 4.7% while the S&P 500 is up 2.1%. I created two charts to demonstrate the dramatic nature of the change relative to trading before December. The … Read more
The Bank of England (BoE) released its “Inflation Report” on November 11, 2009. This was my first time ever reviewing the report and watching BoE Governor Mervyn King in action as he coolly parried with reporters during the press conference covering the report. The latest Inflation Report frequently references the benefits of the depreciation of … Read more
Yesterday, the Bank of England left its interest rate at 0.50% and increased its program of quantitative easing by £25 billion to a total of £200 billion. The British pound immediately rallied on the news against all major currencies – apparently, analysts already expected the increase and were afraid the BoE might actually increase quantitative … Read more
The Wall Street Journal printed a trifecta of articles to day that seem to cry out for the dollar to lift its head out of the sludge. Coincidentally (or not), the dollar rallied for its biggest one-day gain in almost three weeks. In “Uncertainty May Help Dollar“, analysts remind us that the economic recovery remains … Read more