Trading The GBP Ahead Of The Election
A cursory look at the cable does not reveal anything out of the ordinary. The GBP/USD pair is trading at 1.2882, down 0.02% or $0.0003. Over the course of 1 week, the GBP/USD pair has been rather stable with little vertical movement whatsoever. This is particularly surprising given the gravity of recent events taking place in the […]
Chemical Industry Downturn Challenges Stock Market Optimism
Stock markets used to be a reliable indicator for the global economy, and for national economies. But that was before the central banks started targeting them as part of their stimulus programmes. They have increased debt levels by around $30tn since the start of the Crisis in 2008, and much of this money has gone […]
Macro Mondays: An Economic Opine On The Paris Accord
For this special edition of Macro Mondays, I wanted to touch on a topic that’s very recent and at the forefront of quite a few minds. On June 1st, President Trump formally announced that the United States would withdraw its support for the Paris Agreement: an agreement within the United Nations Framework Convention on Climate Change […]
Stocks, Bonds, Euro, And Gold Go Up
The jobs report was disappointing. The prices of gold, and even more so silver, took off. In three hours, they gained $18 and 39 cents. Before we try to read into the connection, it is worth pausing to consider how another market responded. We don’t often discuss the stock market (and we have not been […]
Sensex Trades Marginally Higher; Consumer Durables Sector Up 5.9%
Indian share markets are presently trading marginally higher. Sectoral indices are trading on a positive note with stocks in the consumer durables sector and realty sector witnessing most of the buying interest. The BSE Sensex is trading up 60 points (up 0.2%), while the NSE Nifty is trading up by 24 points (up 0.2%). The BSE Mid Cap index is trading up by 0.4%, while the BSE […]
Oil Heads Higher As Countries Break With Qatar
Both Brent crude futures and U.S. WTI futures were broadly higher during Monday’s Asian session as Saudi Arabia, Egypt, Bahrain and the United Arab Emirates broke ties with Qatar on fears that Doha’s connections to terrorism would cause issues of national security. Qatar has long supported the Muslim Brotherhood, the world’s oldest Islamist movement. The […]
EUR/USD Builds Higher High Which Challenges 1.13 Resistance
EUR/USD 4 hour The EUR/USD bounced at the support levels (green/blue) and showed one more bullish rally. The new higher high is challenging the 100% Fib level at 1.13 of wave 2 (green), which is a break or bounce zone. 1 hour The EUR/USD is in a bullish trend channel (red/blue lines). The breakout direction […]
It Depends On How They Value Time
Peter Dorman calls attention to a NYT Upshot column by Neil Irwin about the cost of climate change. For Irwin, the question can be framed as a matter of discounting, “A dollar today is worth more than a dollar tomorrow and a lot more than a dollar in 100 years. But what discount rate you set determines how […]
“They’re Going To Have All Sorts Of Issues” – Citi Urges Regulators To Address Australia’s “Spectacular Housing Bubble”
Citigroup Chief Economist Willem Buiter says Australia is experiencing “a spectacular housing bubble” that needs to be addressed with tougher regulatory measures – something we’ve noted time and time again. A shortage of housing, coupled with record-low interest rates, has made Sydney the world’s most second-most expensive property market. The city’s home prices jumped 16% in the 12 months through […]
UK’s Weaker Brexit Hand With The EU
Prime Minister May pushed for a snap election in June 2017 to strengthen her hand in the impending Brexit talks. In practice, she has weakened UK’s bargaining power at the EU’s expense, while the latest London Bridge incident introduces new uncertainty and volatility into the EU/UK divorce proceedings. Like too many times before, British police […]
