The Fed has been talking about interest rate hikes, yet the market doesn't buy much of the tough talk. Here is why, and here is why it complicates the Fed's strategy quite a bit. A MUST read, especially for those in stocks, bonds, and currencies!
A quick overview of where we stand for 8 of the most traded currencies. This helps build a general fundamental backdrop, which helps in positioning our technical analysis strategies in the broader picture and improves strategies and risk management.
Janet Yellen spoke on October 14th and sent a clear signal. Yellen's Fed is more "dovish" than past Feds, and that is probably a good thing. There has been an almost paranoid focus on inflation in the past 2 decades all over the world, while NO proof exists that 3% or even 5% inflation is any worse than 2% for growth and prosperity. Yellen has communicated her views to the world, and all traders, business people, and fund managers must listen, because the implications are far-reaching. This post helps you make sense of it all in clear, simple language.
Central banks around the world have been doing everything they can to "boost" their respective economies. They did so by keeping interest rates exceptionally low and "printing money" to purchase financial assets in order to boost asset prices and avoid asset deflation and goods deflation. At the eve of a US election, it is time to take a step back and ponder the next step and the big picture.