ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Three months ago, I wrote about the “organized chaos” in the British pound (FXB). I described an organized process of GBP/USD bouncing off and pivoting around key moving averages with the occasional sharp interruption of Brexit-related trades. Ironically, the sharp Brexit-related rally that sparked that post looks now like the British pound’s last gasp for … Read more
Tears In May Three weeks ago, I wrote about my skepticism about the strength of the British pound (FXB) in the wake of a resounding political defeat for the Conservatives. Brexit-related moves in the pound have proven fleeting and this time was no different. The pound peaked right after that post, but the persistent nature … Read more
Chaos After the divided politicians of the United Kingdom managed to postpone Brexit to October 31, 2019 from March 29, 2019, I assumed the British pound (FXB) would take a break from wild and sudden gyrations. I was wrong. On Thursday, local elections plunged the Conservative party (the Tories) into a resounding defeat that most … Read more
When U.S. Treasury Secretary Steve Mnuchin helped send the dollar careening with commentary welcoming a weak dollar, the British pound (FXB) surged enough against the then hapless U.S. dollar to make me speculate on GBP/USD reaching a blow-off top. GBP/USD did indeed pull back from that point, albeit in very choppy fashion, for almost a … Read more
The following chart reminds me that except for one post-Brexit emergency rate cut and its rapid reversal once the cut turned out to be unnecessary, the Bank of England (BoE) has done nothing with interest rates in the 9 years since the financial crisis. Source: Bank of England During an interview with the BBC on … Read more