Powell Served Up the Ball On Inflation, Bullard Delivered the Slam Dunk

Federal Reserve Chair Jerome Powell served up the alley-oop and James Bullard delivered the slam dunk. While the latest statement on monetary policy had nothing to say about a hawkish turn at the Fed, Powell served up notice during the press conference. Powell noted growth and inflation prospects that exceeded prior expectations, which in turn … Read more

The North American Alliance of Bullish Central Banks

North American: The United States “What we’re seeing now is an economy that seems to be at an inflection point….we feel like we are at a point where the economy is about to start growing much more quickly, and job creation coming in much more quickly…we see strong growth and strong job creation starting right … Read more

South African Rand Boosted By Central Bank Confidence

Last November, the South African rand (USD/ZAR) finished reversing its pandemic related losses against the U.S. dollar. Along the way I pointed out the benefits of getting long the South African rand. This week, USD/ZAR dropped to levels last seen in January, 2020. The rand looks to strengthen further based on the confidence expressed by … Read more

New CBRT Governor Attempts to Stabilize the Turkish lira

A change in leadership at the Central Bank of the Republic of Turkey (CBRT) slammed the Turkish lira (USD/TRY). A little over a week later, the new governor, Şahap Kavcıoğlu, granted an interview with Bloomberg to discuss recent events and monetary policy. The CBRT published a transcript of the brief interview. Thus, I assume the … Read more

Erdogan Slams the Turkish Lira With Surprise Change at the Central Bank

Financial markets hate surprises. Turkey’s President Tayyip Erdogan slammed currency markets to start the week. Two Days after the Central Bank of the Republic of Turkey (CBRT) hiked interest rates again (this time from 17 to 19%), Erdogan replaced the governor. The sacking occurred on Saturday, but the market clearly needed a lot more time … Read more

Central Bank of Nigeria Bolsters Cryptocurrency Ban, Enthusiasm Endures

Google Trends for Bitcoin in Nigeria

“…the CBN [ Central Bank of Nigeria ] has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators..” The Central Bank of Nigeria (CBN), “Response to Regulatory Directive … Read more

The Federal Reserve Pushes Back On Notion Of Fueling A Bubble

“I understand that you do address issues of valuations through macroprudential policies in the first instance. But there’s a range of assets, and I know you do watch a range of assets. But from Bitcoin to corporate bonds to the stock market in general, to some of these morespecific meteoric rises in stocks like GameStop. … Read more

Canadian Dollar: Central Bank Optimism Gives Currency A Fresh Boost

Currency markets were excited for less than an hour over the latest Monetary Policy Report (MPR) from the Bank of Canada. Before the dust settled, USD/CAD, the Canadian dollar versus the U.S. dollar, reached a near 3-year low. Economic optimism from Canada’s central bank gave the Canadian dollar a fresh boost. Bank of Canada Governor … Read more

Forex Critical: The Turkish lira Fever Is Finally Breaking

Three months ago, I worried that the Central Bank of the Republic of Turkey (CBRT) was moving too late to hike interest rates. The Turkish lira (USD/TRY) is now finally working its way lower from those levels as the Turkish lira fever breaks. The path to today’s near 4-month low was fraught with wild volatility, … Read more

Turkish Central Bank Hiked Policy Rate, But Too Late for the Turkish Lira?

The monthly chart of the U.S. dollar versus Turkish lira (USD/TRY) shows a near relentless and massive devaluation.

The Turkish lira suffered another run of sustained weakness this month. Weakness in the Turkish lira drove USD/TRY to new all-time highs. On Thursday, the Central Bank of the Republic of Turkey (CBRT) tried yet again to stop the bleeding. The Turkish Central Bank hiked its policy rate an entire 200 basis points from 8.25% … Read more