ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Yesterday, the Bank of Canada decided to maintain its exceptionally low interest rate of 0.25% and reiterated its commitment to hold rates this low until the end of the second quarter of 2010. This move stands in stark contrast to the rate increase implemented by Canada’s similarly resource-rich “G20 cousin” Australia just two weeks ago. … Read more
Small comments can spark big moves in the currency market. Yesterday afternoon, Chris Giles of the Financial Times posted a summary of his interview with the Bank of England’s head of markets and quantitative easing Paul Fisher. Fisher rejected the notion that the Bank of England has made a conscious effort to direct future exchange … Read more
Watching the U.S. dollar try to rally is like watching a wet noodle trying to stand up…in a downpour. The latest relief rally that I expected in the U.S. dollar came and went with a whimper. A week of lackluster meandering upward has ended with three days of selling, punctuated by the Reserve Bank of … Read more
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