4 keys this week

Market psychology will be framed by 4 items this week. Yellen’s speech to the NY Economic Club U.S. job data Eurozone March CPI and PMI Japan’s Tankan Survey The rebuilding of risk appetites is by easing of monetary policy. Consumer growth is up. This seekingalpha.com article was inspiration for the i post. Follow SeekingAlpha onContinue reading “4 keys this week”

what with the dollar?

In the fast-moving lane of foreign exchange trading, one item has been at the forefront: that the interest rate policies of central banks would be the primary driver of currency movements. Foreign exchange investors have had one organizing principle. That was the Fed’s tightening bias contrasted with the easing bias of the Bank of JapanContinue reading “what with the dollar?”

interest rate increase

The Fed is charged with controlling inflation. The low price of crude oil and petroleum products has kept prices down. Once inflation hits, the Fed knows it can take two years to control it. The thing to do to stay ahead of the curve is to increase interest rates. Are routine interest rate hikes comingContinue reading “interest rate increase”

negative rates risk

Negative inflation rates can depress growth as falling prices induce consumers to postpone purchases – a situation that Japan experienced for many years. In addition, when prices are rising, purchasing power is transferred from lenders to borrowers. Borrowers are effectively able to repay less than what they originally borrowed. But deflation increases the real valueContinue reading “negative rates risk”