ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
In the wake of poor inflation data, a rate cut from the Reserve Bank of Australia (RBA), and then a dovish Statement on Monetary policy, speculators decided that this was not the time to have such a large net long exposure to the Australian dollar (FXA). Source: Oanda’s CFTC’s Commitment of Traders Roll forward to … Read more
Last week, the Australian dollar (FXA) was slammed by poor inflation data. Market expectations for a rate cut strengthened significantly as well. This week, the Reserve Bank of Australia (RBA) took heed and cut its cash rate from 2.0% to 1.75%. In its statement on the monetary policy decision, the RBA explained that its decision … Read more
“The Australian dollar has appreciated somewhat recently. In part, this reflects some increase in commodity prices, but monetary developments elsewhere in the world have also played a role. Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy.” – Statement by Glenn Stevens, Governor: Monetary Policy Decision, April 5, … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 8, 2016. Click here to read the entire piece.) On March 1, 2016, Glencore (GLNCY) announced its preliminary 2015 earnings results. During a media conference call, CEO Ivan Glasenberg declared a bottom for commodities. In the subsequent investor/analyst conference call, … Read more
The Reserve Bank of Australia (RBA) rolled out the copy and paste machine for its December statement on monetary policy. I found just two snippets of differences from the November statement that are worth noting: This time around, the RBA fingered weaker demand as a driver of lower commodity prices. In the last statement, supply, … Read more