ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The British pound has taken some sharp twists and turns since first hitting 4-month lows against the U.S. dollar on September 28. I have been steadfast in my bearishness against the pound since mid-September, but I have found it necessary to dance in and out of positions given the persistent decline in the dollar against … Read more
Moments like these remind me how swiftly the tides can change in foreign exchange. The minutes from the Bank of England’s meeting in October showed that all members now support leaving quantitative easing at its current level of 175 billion pounds. This unified support marks a change in particular for Governor Mervyn King who earlier … 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
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