The BoE’s decision. As widely expected, the Bank of England (BoE) carried out no change to its monetary policy during its meeting yesterday. Interest rate remains at 0.10% with all eight voting committee members voting for no change. Quantitative easing (QE) remains at £895 billion in total. Michael Saunders, one of the hawks of BoE, voted for a reduction in...
The RBA’s decision. During their monetary policy meeting yesterday, the Reserve Bank of Australia (RBA) kept its monetary policy unchanged, holding interest rate at 0.10% and quantitative easing (QE) at a rate of A$5 billion per week. A little surprise. With the recent spike in COVID cases in Australia due to the highly contagious Delta variant, the market was...
The recent breakout of the EURUSD above the descending channel was bolstered yesterday following the July policy meeting of the Federal Reserve. Jerome Powell and his colleagues from the FOMC did not bring anything new to the table, which weakened the greenback in the short term. The price action is currently probing the 200-day MA (in purple). The next closest...
The Fed’s decision. The U.S. Federal Reserve delivered no surprise during their monetary policy meeting earlier today as widely expected. The Federal Funds Rate was held unchanged at the target range of 0-0.25% while quantitative easing remains at $120 billion per month ($80 billion of Treasury securities and $40 billion of agency mortgage-backed securities). ...
New monetary policy strategy. Earlier this month, the European Central Bank (ECB) reconvened its policy review that was postponed since last year due to the COVID-19 pandemic. During the review, the central bank revised its current goal of achieving an inflation level of “below, but close to 2%” to the new goal of achieving 2% inflation with overshoots allowed....
Expecting monetary policy scheduled later to be mixed sentiment( both hawkish & dovish) . Traders sentiment more on buys for Euro. I find it strong for buy because Aussie performs much more weaker mainly in regards of losses due to pandemic and recent announcement by RBA no interest rate hike until 2024 added with decrease in retail sales of June 2021. Trade...
Despite pouring cold water on the face of monetary policy adjustment hopes, the Reserve Bank of Australia (RBA) manages to keep AUDUSD at the front of the G10 gainers. The Aussie central bank refrained from widely teased yields targets while also signaling a plan for further bond purchases during Tuesday’s monetary policy meeting. However, downbeat US dollar and...
Following the 2008 Financial Crisis, the Federal Reserve had to apply loose monetary policy measures in order to stabilize and stimulate the economy. The Fed started lowering the Federal Funds Rate back in late 2007, as a response to the rising unemployment at the time. This is the most traditional monetary policy measure, which aims to stimulate both businesses...
GBPJPY fell this morning as the Asian session ended weary of the the BoJ's interest rate decision and release of Inflation YoY. This, coupled with the pair showing early signs of exhaustion is creating great weather conditions for a storm. The pair fell short of the 154.000 mark and looks to consolidate ahead of the BoJ's decision before a small breakout above the...
The Monetary Policy Committee (MPC) of the Bank of England expectedly maintained the near-negative Official Bank Rate unchanged at 0.10 per cent. The pound initially surged following the publication of the policy decision, but then the GBPUSD promptly retraced from the initial peak. The GBPUSD probed the lower boundary of the Distribution Area in the wake of...
On the chart we have a “Hockey Cross” formation, which as we know is played down, at the ice level. The price of American bonds decreases, their yield increases, which shows us the inflation spectrum on the Horizon. I analyze bonds for investment less than for the effect that their decrease can have on the entire financial market. Dovish BONDS, means rising...
The EURUSD appears to be developing a major H&S pattern, which is typically taken to indicate emerging bearish reversals, ahead of FED's April policy meeting. The expected upsurge in volatility later today and tomorrow (advance U.S. GDP data scheduled for release) would demonstrate whether such an H&S pattern is really in the making. Notice that the Neckline is...
... Feel free to come up with your own preferred narrative. Here is the the Original Post; This current post; is generally just a cleaned up version of the original.
I covered this part in my video. To be more specific, I made this chart to better understand how things linked up. US 10Y yield is the anchor that rising rates may indicate two things: 1)strong economy, 2) inflation Fed is only able to directly control the short-term rate, say federal funds rate, not the long-end rate. On March 15th of 2020, It reduced the...
CPI index data and Fed policy should establish direction from $50000
I see many people say on internet that the market is highly volatile and very hard to predict the trend. In my opinion, institutional investors (even including Fed) have different thoughts about where the economy is heading due to uncertainty. So, I want to guess what they are probably thinking so that it may give us some clues why the market is acting in this...
1- Bunch of hippies partying in an anti profit "environment friendly" are stunned and learn a harsh lesson about reality *********************** I'll start this with a fun one. Try not to laugh. Vice produced a video about a couple dozen of hippies that ended stuck in a jungle after being placed under quarantine due to covid-19. "The Tribal Gathering Festival...
In Argentina big bags of Soybean worth $100,000 are being destroyed by mysterious sabotageurs *********************** The country with the longest continuous lockdown in the world, that also has the 4rth highest death rate in the world despite having a quite young population, median age ~30, and has sort of been in a depression for 20 years thanks in big part to...