ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Bank of England (BoE) has not raised interest rates since the Great Financial Crisis. During this time, there have been several inflation “scares” as inflation levitated well above the Bank’s 2% target. Through it all, the BoE stood resolute in choosing to see through the elevated inflation in order to avoid premature rate hikes … Read more
On June 6, 2016 (U.S. time), the Reserve Bank of Australia released its latest statement on monetary policy. The pronouncement was as pedestrian as ever, including leaving rates untouched. The most notable difference from the current and the previous statement appears to be the RBA’s reflections on inflation. In the current statement, the RBA made … Read more
In the last edition of “Forex Critical” I claimed that the Australian is not likely to maintain its current blistering pace of gains. Just three days later, the stubbornly persistent rally of the Australian dollar (FXA) may already be grinding to a halt. The Australian Bureau of Statistics (ABS) released its inflation data for March, … Read more
On October 28, 2015 (Australian time), the Australian dollar (FXA) was slammed by Australia’s September, 2015 inflation data. Source: FreeStockCharts.com The Australian Bureau of Statistics reported a 1.5% year-over-year increase in its Consumer Price Index (CPI) for September. While inflation is still hovering above the lows for the post-crisis period, this is the longest stretch … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 7, 2015. Click here to read the entire piece.) The Bank of Japan put on a brave face as it announced its latest decision on monetary policy (October 7, 2015) with a big miss on its inflation target looming in … Read more