ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The pound continues to flunk the test of a safe haven currency. Both the yen and the U.S. dollar have been soundly beating out the currency for the entire month of May – for example, CurrencyShares British Pound Sterling Trust (FXB). Those beatings have accelerated along with the worsening crisis in the eurozone. The chart … Read more
This is an excerpt from an article I originally published on Seeking Alpha on November 15, 2011. Click here to read the entire piece.) Ever since the Bank of England announced more quantitative easing in the form of £75B of more bond buying, the British pound has bottomed and rallied against the U.S. dollar and … Read more
On July 24, British Business Secretary Vince Cable was interviewed on the BBC’s Andrew Marr Show. During this interview, Cable made the case for further quantitative easing (QE) if consumer demand in the UK continues to weaken. While he was quick to point out that the Bank of England runs independently, he provided a ringing … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Almost a month ago, Bank of England Governor Mervyn King spoke at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House, and I wrote afterward that the … Read more
After scanning through the latest quarterly release of the “Statement of Monetary Policy” from the Reserve Bank of Australia, I was reminded that currency traders are trying to prepare for eventual rate hikes from the European Central Bank (ECB) and the Bank of England (BoE): “While financial markets continue to expect the US federal funds … Read more