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Market Directions And The Fed
Written on 25 Feb, 2010 at 0:38 in Featured Article | viewed 73 times | 0 Comments
Feb.24.2010 The Fed’s main concern is jobs. Its estimated range for GDP growth this year of 2.8% to 3.5% will not reduce unemployment, says Joseph Trevisani, Chief Market Analyst, FX Solutions. Catch Joseph, and TheLFB trade team on ForexTV Live. The Federal Reserve 25 basis point increase in the discount rate last Thursday to 0.75% was not a market moving event. [...]... (Continue reading)
QE liquidity 92.5% deployed
Written on 26 Jan, 2010 at 16:53 in Commodities | viewed 92 times | 0 Comments
Jan.26.2010 The Atlanta Fed’s Weekly Highlights points out that only $12.7B of the $175 agency debt and $110B of the agency MBS purchase programs remain to be deployed. With the $300B in Tsy purchases dried up already from last fall, this means 92.5% of QE liquidity has been injected, and less than $125B remain. This [...]... (Continue reading)
I’d Rather Get a Poke in the Eye with a Sharp Stick Than Buy Equities
Written on 11 Jan, 2010 at 20:10 in Stock market | viewed 65 times | 0 Comments
Jan.11.2010 At a PE multiple of 20 times earnings, US equities (SPX) are at the top of a seven year valuation range. Emerging markets are even worse, with countries like China and Taiwan sporting positively bubblicious multiples. There is no doubt that corporate managements panicked at the beginning of 2009 and chopped overheads at an unprecedented rate, leading [...]... (Continue reading)
Interest Rates and Money Supply Impact Fed
Written on 8 Jan, 2010 at 1:15 in Featured Article | viewed 51 times | 0 Comments
Jan.07.2010 There is a modest recovery underway in the American economy, says Joseph Trevisani of FX Solutions. The Federal Reserve can no longer avoid the looming choice on interest rates and the money supply. Since the sub-prime crisis began Chairman Bernanke has been the consistent champion of monetary easing. Under his leadership, the Federal Open [...]... (Continue reading)
Equities Lower On Momentum Change
Written on 17 Dec, 2009 at 23:40 in Forex news | viewed 63 times | 0 Comments
Dec.17.2009 Equity Futures: Dow -24.00. S&P -3.00. NASDAQ -6.00. Japanese Nikkei +50.00. German Dax -11.00. European Trade: European shares turned negative around the opening bell in Thursday trade, following risk-averse global momentum that looks have the markets at a swing change. Asian equity markets closed lower, while S&P futures also lost a few points, reaching [...]... (Continue reading)
Rating Agencies On The Move
Written on 9 Dec, 2009 at 14:02 in Featured Article | viewed 86 times | 0 Comments
Dec.08.2009 Rating agencies proved to be very active in the first few days of the current week, downgrading Greece’s debt rating and the rating on six Dubai based companies. Even if the downgrade of the state-owned Dubai companies does not represent a surprise, after the saga seen in the financial press over the last two [...]... (Continue reading)
ECB Press Conference Highlights
Written on 4 Dec, 2009 at 1:05 in Featured Article | viewed 66 times | 0 Comments
Dec.03.2009 The Governing Council decided to leave the key ECB interest rates unchanged. The following summary highlights their key points: At today’s meeting we [the Governing Council] also decided to continue conducting our main refinancing operations (MROs) as fixed rate tender procedures with full allotment for as long as is needed We [the Governing Council] [...]... (Continue reading)
The 20 Lost Japanese Years
Written on 2 Dec, 2009 at 11:06 in Featured Article | viewed 70 times | 0 Comments
Dec.01.2009 Tuesday trade had two main moments of volatility, the first came from the RBA, and their decision to raise overnight interest rates to 3.75%, and the second came from the surprise Bank of Japan monetary policy decision to flood the commercial market with near-term liquidity. Paradoxically, the two banks are at the opposite ends [...]... (Continue reading)
China’s Predatory Currency Policy
Written on 11 Nov, 2009 at 13:12 in Featured Article | viewed 56 times | 0 Comments
Nov.11.2009 Mercantilism is alive and well in China this Currency Thoughts article reveals. China is now the world’s third largest economy although well down the leader board in per capita terms. Chinese monthly economic figures for exports, industrial production, and investment will be reported today. A massive three-dimensional policy stimulus from low interest rates, deficit fiscal spending [...]... (Continue reading)
Strong Dollar Policy
Written on 22 Oct, 2009 at 11:20 in Forex | viewed 49 times | 0 Comments
Oct.21.2009 The U.S. Treasury is actively pursuing a strong dollar policy (no laughing at the back), but the greenback continues to decline against virtually every other currency in the foreign exchange market. It is presumed that a strong U.S. dollar is in everyone’s interest, and lately the ECB is pointing this out at every possible [...]... (Continue reading)
