ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I suggested on Friday that old mercantile forces would start to gripe if the Japanese yen continued to rise too far. Sure enough, Reuters reports this morning that the Japanese Finance Minister, Hirohisa Fujii, is backing away from earlier remarks he has made essentially welcoming a stronger currency. Fuji even went so far as to … Read more
Today has been a wild day in the financial markets, and I almost hesitate to jot down my thoughts before the close of trading. However, I will be shutting things down to get the weekend started as soon as possible, so I am writing now while thoughts remain fresh. There is no one theme I … Read more
“That rebalancing of the UK economy that I have been talking about for about 10 years, is very necessary. I think the fall in the exchange rate that we have seen will be helpful to that process but there’s no doubt that what we need to see now is a shift of resources into net … Read more
This morning, the Bank of England released its minutes from the September meeting of the Monetary Policy Committee. From my reading, it contained no new news on the prospects for negative interest rates. The “relief” from the minutes has so far lifted the pound against the euro, the U.S. dollar, and even the yen. I … Read more
Last week I decided to short the pound vs the U.S. dollar despite the fact that the relief rally I expect in the dollar had not yet begun. One week later, there remains no relief in sight for the dollar, but the pound has fared even worse. I am of course grateful that I chose … Read more