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 gained a modest 3.5% since early June when I removed my long-standing bearishness on the currency. The momentum in the pound accelerated somewhat after last Wednesday’s release of the Bank of England’s minutes showed Andrew Sentance dissented from the rest of his fellow central bankers by calling for a rate hike. … Read more
By now, I think we should recognize that low-volume rallies simply do not last – the odds tend to favor a return of most, if not all, those kinds of gains, sooner than later. Last week, I was particularly puzzled by a low-volume 2.4% rally on the S&P 500 that came on the heels of … Read more
While the euro catches all the headlines about its tremendous slide against the U.S. dollar, the British pound has followed closely behind. The pound has lost 12% against the U.S. dollar since its January peak while the euro has lost 18% in that same time. The pound has lost 15% since its post-recovery peak in … Read more
(This is a adapted repost from Inflation Watch) Bank of England (BoE) Monetary Policy Committee Member Adam Posen tells CNBC in an interview (see below or click here) that stubbornly high inflation is keeping the Bank of England members up at night. However, Posen prefers this situation to deflation (as all central bankers would). Slack … Read more
The Australian dollar is my favorite currency. I have remained very bearish on the British pound since first writing about the currency last September (yes, there actually IS a currency I dislike more than the U.S. dollar!). For whatever reason, it only recently occurred to me to pull up a long-term chart comparing these two … Read more