Category Archive: Finance
Low Volatility Isn’t Limited To US Stocks
The US stock market’s ongoing run of low volatility has inspired a torrent of commentary as the crowd struggles to make sense of the trend. Analysts at JP Morgan, for example, recently wrote that “a very low supply of economic surprises currently is by itself enough to explain the low level of market volatility.” Meanwhile, a strategist […]
EUR/USD And GBP/USD Forecast – Thursday, July 13
EUR/USD The EUR/USD pair initially tried to reach at the 1.15 level but failed. Janet Yellen’s speech in front of Congress was a little less hawkish than expected, although it certainly seems as if the Federal Reserve will raise interest rates. This bit of uncertainty could hamper risk appetite, and with that being the case […]
Gold Prices Eye Key Resistance As Day 2 Of Yellen Testimony Looms
Gold prices rose after markets concluded that Fed Chair Janet Yellen adopted a dovish posture in testimony before a House of Representatives panel yesterday. She seemed wary of recently slowing inflation and suggested that rates won’t need to rise much further to get to a neutral setting. That sent the US Dollar lower alongside Treasury bond yields, boosting the […]
Global Stocks Hit New All Time High After Dovish Yellen, Strong Chinese Trade Data
The hawkish tone and global bond tantrum unleashed by central bankers at the Sintra ECB forum two weeks ago is now a distant memory, and after Janet Yellen surprised markets with an unexpectedly dovish (in the market’s interpretation) testimony yesterday, overnight global shares hit their fourth all-time high in less than a month as concerns […]
Indian Indices Finish The Day At Lifetime Highs
After opening the day on a positive note, Indian share markets continued their uptrend and ended their day on a positive note. Gains were largely seen in the capital goods sector, banking sector and FMCG sector leading the gains. At the closing bell, the BSE Sensex stood higher by 233 points (up 0.7%) and the NSE Nifty closed higher by 76 points (up 0.8%). The BSE Mid […]
China Money Growth Monitor
The June money supply and credit stats out of China confirmed a couple of important trends that we’ve previously identified. The first is the gradual slowing in M2 growth, albeit the absolute pace is still fairly rapid. The second is the continued rapid expansion of credit to support economic growth. The third, and in my view […]
Fed Chairman, Yellen: Additional Gradual Rate Increase Still Possible
The Federal Reserve Chairman, Janet Yellen, said in her testimony in front of the Congress that the current economic path is expected to call for more gradual increments in the Federal Fund rates. The economy moved upwards in Q2 due to household and business investment spending and stronger world economy. She described the inflation response […]
Yellen, Employment & Policy Errors
In Janet Yellen’s semi-annual testimony on Capitol Hill yesterday, she made reference to the ongoing strength of employment as one of the reasons for continuing to “normalize” monetary policy by lifting interest rates and reducing the existing bond holdings of the Federal Reserve. To wit: “Since my appearance before this committee in February, the labor market has continued to strengthen. […]
GBP/USD Recovering On Central Bank Divergence – Can It Last?
Ian McCafferty is a consistent hawk in the Bank of England’s Monetary Policy Committee. While his colleagues are deliberating the options of raising rates against rising inflation yet a slowing economy, McCafferty has other ideas. In an interview with The Times, he suggested reviewing the Bank’s policy of Quantitative Easing. He suggests bringing an early end to […]
Sterling And Antipodeans Trade Higher
The US dollar is mostly consolidating yesterday’s move. Sterling is pushing back through $1.29 as the hawks on the MPC may not have been dissuaded by disappointing PMI readings and the softer earnings growth. The table is being set for another 5-3 vote at next month’s MPC meeting. The Australian and New Zealand dollars are up about 0.6%, gaining nearly […]
