ECB Leaves Policy Unchanged – EUR/USD Holds High Ground
The European Central Bank left its policy unchanged. In the accompanying short statement, they maintained their usual phrase about QE: it will continue through 2017 or beyond if necessary. The main lending rate remains at 0% and the deposit rate at -0.40%. No changes were expected to rates. EUR/USD holds onto the levels it climbed […]
ECB Keeps Rates, Statement Unchanged; QE To Run Until “December 2017 Or Beyond”
The ECB has kept not only its three key rates and pace of QE unchanged, but also its most recent statement, reiterating that it sees QE “at the current monthly pace of €60 billion, are intended to run until the end of December 2017, or beyond, if necessary”, sees rates at present level well past […]
Assessing Value In Emerging Market Currencies
During a period of robust inflows and more positive sentiment, emerging markets1emerging markets have outperformed developed markets by a margin of 6%2 to 12%3 year-to-date. This is primarily a function of a rebound in earnings, higher asset prices and a rise in the value of EM currencies against the U.S. dollar. With many emerging equity markets up over 20% […]
Sensex Ends Flat; ITC & Bharti Airtel Top Losers
Share markets in India ended the day on a flat note tracking Asian share markets after US President Donald Trump and congressional leaders agreed to raise the government debt limit until December. At the closing bell, the BSE Sensex closed higher by 1 point. While, the NSE Nifty finished higher by 14 points. Meanwhile, the S&P BSE Midcap Index finished up by […]
Gold Soars Above $1300 As Concerns Mount
Gold has tested $1300 level three times since April and it finally broke above the level on Monday and rose to the highest level this year. The trigger of the break seems to be the North Korea firing a ballistic missile over Japan, which boosts the safe haven demand. The yellow metal then extended the […]
US 10-Year/3-Month Treasury Spread Falls To Nine-Year Low
The yield difference on the benchmark 10-year Treasury Note less the 3-month T-bill fell to 1.03 percentage points on Wednesday (Sep. 6), the lowest since Jan. 2008, according to daily data published by Treasury.gov. The latest dip pushed the spread below the previous post-recession low of 1.08 set in July. The widely followed 10-year/2-year spread (red line […]
‘Sorry, But It’s Crazy’ – Riksbank Decision And The Policymaker Paradox
As noted in our week ahead preview, the Riksbank faced a rather daunting task headed into today’s rate decision. Obviously, they have to exercise caution. They’re effectively beholden to whatever the ECB does. As Governor Stefan Ingves told Bloomberg earlier this year, “when you are next to an elephant, you have to be careful.” Simply put: they need to […]
E Stock Market Bubble Now Largest Of Past 100 Years
Context plays a vital role in the development of reliable market forecasts. Short-term price behavior only has meaning when analyzed in the proper context afforded by the long-term view, so all investing and trading strategies should begin with a thorough understanding of the big picture. The cyclical bull market in stocks that began in early […]
Consumer Credit & The American Conundrum
What to do? This is not as an innocuous question as one might think. For most American families, who have to balance their living standards to their income, they face this conundrum each and every month. Today, more than ever, the walk to the end of the driveway has become a dreaded thing as bills […]
All Eyes On Draghi: Futures Flat, Euro Surges, Dollar Slides; Yuan Breaches 6.50
S&P futures are flat, still spooked by the WSJ’s report that Gary Cohn will not be the next Fed chair, while both European stocks and Asian shares gain in a overnight session on edge in which everyone is looking forward to today’s main risk event: the ECB meeting and Draghi press conference due in under […]
