- Yellen’s nomination provides markets with a sense of continuity of the Fed’s current monetary policy decision-making and communications process
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S&P Yellen nomination a near to intermediate positive
Standard & Poor’s give two reasons that Janet Yellen’s nomination as Chairman of the Federal Reserve is a near-to-intermediate term positive:
An interesting week for GBP/USD. New recent highs ???
Not since late January/early February this year have we seen cable with a tag of 1.6, and further appreciation the other side of that number has been tentative (previous highs of only 1.62 and change in May and September 2012). I don`t get the news that there is a huge head of steam in terms of positioning behind this move, but cable has certainly been a precious and rare friend of the hedge fund community since the latest uptrend started in July.
Important to remember that to model driven curre…
Important to remember that to model driven curre…
Larry Summers withdraws his nomination. USD reacts!
Larry Summers has withdrawn his name for the job of the Chairman of the Federal Reserve This will be bearish for the USD as Summers was perceived in the markets to be in favour of a slightly faster ‘taper’ than the other prime contender for the job, Janet Yellen Wall Street Journal: Summers Withdraws Name of Fed Chairmanship USD is weaker on the news:
- EUR/USD 1.3337
- USD/JPY 98.94
- AUD/USD 0.9312
- GBP/USD 1.5910
- USD/CHF 0.9276
Commodity Trading in Jeopardy as Fed Reviews Policies
The Federal Reserve is considering reversing decade-old rule allowing banks to ship oil and storing metal. How it could influence commodity trading? If the Federal Reserve reverses the rule allowing banks ship oil and store metal, it would be the biggest exclusion of banks from a market and it would put banks commodity-trading business in jeopardy. Most likely, commodity prices would stabilized or even go lower, because of the heavy impact it will have on banks. And for the banks, it woul…
What To Expect From Ben Bernanke?
US Federal Reserve Chairman Ben Bernanke's semi-annual testimony on monetary policy before the Congress is one of the key market-moving events. Especially this time, it will be Bernanke’s last time in front of Congress before his term ends in 2014. Bernanke heads to Capitol Hill on Wednesday and Thursday, first going up to the House Financial Services Committee to deliver the semi-annual monetary policy report, and the next day heading to the Senate Banking Committee. Now, the markets have…
Market Forecast for the Near Future.
Market Forecast for the Near Future. I think stock market shows signs of resiliency. I believe stock market will see a good interest from retail clients in the near future, because this is the only game in town. Bonds became very dangerous investment because of expected changes in Federal Reserve monetary policies. As long as we will not have very strong economic data coming out in the near future that would push interests rates over the top, the stock market will not sell off. Treasury …
Will Yuan replace US Dollar?
There is a unique symmetry between the United States Federal Reserve and the People’s Bank of China in that each has well over $3 trillion in assets on its balance sheet. But the similarities end at that point. The Federal Reserve acquired about $3 trillion in assets by expanding its balance sheet with the goal to recapitalize the global financial system. In contrast, the trillions in assets held by the People’s Bank of China are from export earnings and trade surpluses registering in the tens…
Is the Federal Reserve Right?
Is the Federal Reserve Right? At the recent FOMC meeting, Bernanke was not clear about timing and even course of the Federal Reserve in ending bond buying program. His uncertainty created a lot of volatility in the market. Given this volatility, I think it would be very difficult for the Federal Reserve to signal any type of exit strategy without causing some form of market response. In a way, it makes Federal Reserve a hostage to the markets. The challenge for the Federal Reserve would be to …