Category Archives: central banks

Currency trading and Stock trading – the Yellen effect

stock exchange

Events of the last several months overseas as well as here in the U.S., are having an adverse effect on markets….

But the focus was on Yellen, who was due to speak before the Economic Club of New York at 1530 GMT. Weaker-than-expected U.S. consumer spending data on Monday prompted analysts to suggest the U.S. central bank would be cautious about raising rates this year. Fed policymakers earlier this month projected two rises in 2016, with some saying the first could come next month.

http://www.reuters.com/article/us-global-markets-idUSKCN0WU00R


Trouble brewing in Japan – BOJ

USD-JPY

Happy Easter Holiday to all of you……

One long-standing axiom of markets, at least during the QE years, is being tested in real time, and it’s making Bank of Japan policymakers (and at this point, politicians too) nervous: the Japanese Yen shall fall when equity markets rally. After weeks of central bank action surprising on the dovish side, market participants have been left scratching their heads as this rule has been seemingly violated through and through.

https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2016/03/20/BOJs-Easing-Running-Thin-USDJPY-to-Prove-Testy-Around-110.00.html?DFXfeeds=forex:fundamental:forecast:weekly:jpy


So, they finally admit to an economic slowdown

economy

Will we see an increase in interest rates, when will the banks start charging their customers for deposits….

The common force yesterday was the revising of forecasts to the reality of slower growth, both domestically and globally. This was seen both by the US Federal Reserve and the UK Chancellor has he presented his budget.

http://www.forexcrunch.com/fed-admits-economic-slowdown/


Will China’s banks increase credit risk

China PBOC Chief

And how will that affect the U.S. economy…..

People’s Bank of China Governor Zhou Xiaochuan warned banks about increased credit risk amid rising real estate prices in the biggest cities, while adding the country can achieve its economic growth targets without too much monetary stimulus.

http://www.bloomberg.com/news/articles/2016-03-12/pboc-s-zhou-says-property-prices-rising-sharply-in-major-cities


Socialism and Inflation – In Brazil

inflation-note

It is unfortunate when a country’s leaders want to provide a lot free stuff in order to get elected – but then, the people who elect them get what they deserve…

Brazilian real to come under renewed pressure

In Brazil, inflation is expected to have risen 10.44%y/y in February, slightly less than January 10.71% increase. It seems that inflation expectations have been successfully re-anchored for a few months now.

http://www.actionforex.com/analysis/daily-forex-fundamentals/fading-iron-ore-rally-to-increase-pressure-on-brl-20160309259567/


Be aware, Central Banks will be meeting

central banks

Withe Central banks to decide how to handle the problems of their respective countries, currency trading could get tricky…..

Non-Farm payrolls printed with an aggressively bullish headline number of +242k jobs added to American payrolls, but the internals of the report weren’t all that great. Christopher Vecchio outlines this morning’s jobs report.

– The next two weeks bring markets three of the largest and most pivotal Central Banks with rate decisions, meetings and press conferences that can invoke volatility henceforth. We preview each of those meetings below.

https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2016/03/04/the-central-banks-are-coming.html?DFXfeeds=forex:fundamental:daily_briefing:session_briefing:daily_fundamentals