ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
Traders have thoroughly beaten up on the U.S. dollar (USD) for the last six weeks. In the past week, the selling accelerated again in the wake of commentary from U.S. Treasury Secretary Steve Mnuchin that the U.S. welcomes a weak currency because of its positive impact on U.S. exports. The British pound (FXB) is one … Read more
Almost a month ago, I celebrated a major breakout for iPath Bloomberg Cocoa SubTR ETN (NIB) by declaring a confirmed bottom. That bottom still holds but unfortunately NIB has persistently declined since then. NIB is down 15.2% from the time of that post. Source: FreeStockCharts.com At the time of my last post, the International Cocoa … Read more
In recent days I wrote about the British pound (FXB) and the Mexican peso. In both posts, I pointed out to resistance levels versus the U.S. dollar: GBP/USD and USD/MXN. In both cases, those resistance levels held. In the case of the pound, the technicals held against major fundamental news: the Bank of England (BoE) … Read more
When speculators finally flipped bullish on the British pound (FXB), it looked like the action came right as the currency was making a peak against the U.S. dollar (DXY0). The timing of my observation happened to mark the bottom for GBP/USD, and now speculators have backed down from their nascent pound bullishness. They now hold … Read more