ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on August 15, 2012. Click here to read the entire piece.) The Bank of England’s latest Inflation Report (August 8th) included two items that I found particularly interesting: The Bank of England (BoE) expects the squeeze in take home pay in the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) In “British Pound Surges Into Resistance – Buy Dips As Government and Bank of England Try To Ease Credit Crunch” on June 15th I argued that it is time to buy … Read more
After failing to to topple over the 1.56 level over the past week, the British pound finally made a major breakthrough today against the U.S. dollar (FXB). This surge takes GBP/USD takes the currency pair right into the teeth of resistance from declining 50 and 200-day moving averages. Source: FreeStockCharts.com I think this resistance will … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 4, 2012. Click here to read the entire piece.) I have followed the Bank of England’s quarterly Inflation Report since November, 2009 as a way to gain insight into the UK economy and the prospects for the British pound (FXB). … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 15, 2012. Click here to read the entire piece.) The Financial Times has launched a new weekly podcast called “Hard Currency.” The first interview aired on May 13th featuring Alice Ross as host and senior currency analyst Paul Robson from … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 30, 2012. Click here to read the entire piece.) As recession descends across Europe, fiscal policies have received extra scrutiny. Austerity measures have been promoted as keys for long-term economic stability but the necessary short-term pains have been understated. Without … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 2, 2012. Click here to read the entire piece.) In January of this year, Adam Posen, External Member of the Monetary Policy Committee, Bank of England, gave a talk titled “What the return of 19th century economics means for 21st … Read more
Last week I asked whether time is running out for the Australian dollar versus the British pound. Apparently, the answer is yes. The very next day, the GBP/AUD currency pair surged upward through the previous trading channel. Only the 200-day moving average (DMA) stopped the momentum. But even that reprieve looks very temporary. As of … Read more
The GBP/AUD currency pair – the British pound versus the Australian dollar – combined the best of two worlds for me: my bearishness on the British pound and my bullishness on the Australian dollar. Even though I ended my love affair with the Australian dollar almost two weeks ago, I continue to enjoy trading the … Read more
On Tuesday (February 28), the British pound finally broke out against the U.S. dollar with a resounding surge above its 200-day moving average (200DMA). The struggle to break this resistance lasted the entire month of February. Despite this technical breakthrough, I remain skeptical that the British pound will deliver much follow-through before faltering again. Indeed, … Read more