Tag Archives: US Federal Reserve

Dear FX traders: forget the dot plot, and prepare to learn a new – or to some forgotten – skill: how to read trade flows. As Bloomberg’s Vincent Cignarella and Andrea Wong point out, currency traders accustomed to analyzing the Fed’s dot plot and monthly U.S. jobs figures to predict the direction of the world’s reserve currency are having to learn, or in some cases re-learn, a largely forgotten ability: how to...

Having discontinued its production of EUR500 banknotes, it appears Europe is charging towards the utopian dream of a cashless society. Just days after Davos’ elites discussed why the world needs to “get rid of currency,” the European Commission has introduced a proposal enforcing “restrictions on payments in cash.” With Rogoff, Stiglitz, Summers et al. all calling for the end of cash – because only terrorists and...

In September 1986, The Economist weekly newspaper published its first-ever “Big Mac Index”. It was a light-hearted way for the paper to gauge whether foreign currencies are over- or under-valued by comparing the prices of Big Macs around the world. In theory, the price of a Big Mac in Rio de Janeiro should be the same as a Big Mac in Cairo or Toronto. After all, no matter where in the world you buy one, a Big Mac...

For the third time in four weeks, the market was closed on Monday due to a holiday. Not only is this week shortened by a holiday,  it is also coinciding with the annual Billionaire’s convention in Davos, Switzerland and the Presidential inauguration on Friday. Increased volatility over the next couple of days will certainly not be surprising. In this past weekend’s missive, I discussed a variety of “extremes” being...

Risk assets declined across the globe, with European, Asian shares and S&P 500 futures all falling, while the dollar slumped against most currencies after a news conference by President-elect Donald Trump disappointed investors with limited details of his economic-stimulus plans, and the Trumpflation/reflation trade was said to be unwinding. "The risk was always that a president like Trump would end up upsetting that consensus (of faster U.S. growth, stronger dollar) view by introducing...

For over four decades, many of the planet’s biggest trouble makers and assholes have met each year in Davos, Switzerland, for the World Economic Forum with the humble mission of, “Improving the state of the world.” Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium in Jackson Hole on an important issue facing the world’s bankers and their pet politicians and government bureaucrats....

Prince, RIP, owned gold bars worth just over $800,000 according to the statement filed in a Minnesota court last Friday. At the time of his death, Prince had taken delivery of and had in his possession 67 gold bars, 10 ounce gold bars, valued at $836,166.70. That’s according to an asset inventory compiled by Bremer Trust released by the Carver County District Court, as first reported by the Minneapolis Star Tribune....

Gold Price In GBP Rises 4% On Brexit and UK Economy Risks – Pound fell 2% against gold yesterday after Theresa May created Brexit concerns  – May’s ‘Hard Brexit’ denial does not calm markets growing fears – Investors concerned about lack of government strategy and uncertainty – UK Prime Minister bizarrely blames media and “those who print things” for sterling depreciation – GBP gold builds on 31% gain in 2016 with 4%...

– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY – Gold gains in CNY, INR & most emerging market currencies– Gold surges 31.5% in British pounds after Brexit shock– Gold acted as hedge and safe haven in 2016 … for those who need safe haven– Furthers signs of market having bottomed and bodes well for 2017 – What drivers will gold respond to in 2017? –  EU elections and contagion risk, Geo-politics, terrorism, war...

– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY – Gold gains in CNY, INR & most emerging market currencies– Gold surges 31.5% in British pounds after Brexit shock– Gold acted as hedge and safe haven in 2016 … for those who need safe haven– Furthers signs of market having bottomed and bodes well for 2017 – What drivers will gold respond to in 2017? –  EU elections and contagion risk, Geo-politics, terrorism, war...