Central Banker’s see sluggish Global Economy.
Central bankers expect the world economy to turn “sluggish” by the end of the year as soaring inflation and higher borrowing costs bite into disposable incomes, Argentine central bank President Martin Redrado said.
This is not a new thought and one which I (and many others ) have been talking about for quite a while.
“We see very difficult times for the world economy moving ahead,” Redrado said today, reporting on a meeting of the world’s central bankers at the Bank for International Settlements in Basel, Switzerland. “By the end of the year, we’re going to have a sluggish world economy.”
This signals to me that the world Financial leaders know the dual problem facing the world, high inflation and slowing growth, and will fight the inflation battle first and deal with the slower economy later on. I definitely agree with this move.
Colombia I talked about how the Central Bank chief stated last week that he would do anything he could to stop the Peso appreciation, well here is an article from BLOOMBERG which can certainly be a catalyst for it. Clearly exporters are feeling the pinch and have been voicing it to the Government. It seems now they are listening. The currency has been very volitile and trading on thin volume. The Peso weakened 270 big figures in a week, with it moving 100 figures down and then up on Friday. I am small short dollars here thinking that it is temporaryly overdone.
Good Luck and Good Currency Trading.
Central Banker’s see sluggish Global Economy.
Central bankers expect the world economy to turn “sluggish” by the end of the year as soaring inflation and higher borrowing costs bite into disposable incomes, Argentine central bank President Martin Redrado said.
This is not a new thought and one which I (and many others ) have been talking about for quite a while.
“We see very difficult times for the world economy moving ahead,” Redrado said today, reporting on a meeting of the world’s central bankers at the Bank for International Settlements in Basel, Switzerland. “By the end of the year, we’re going to have a sluggish world economy.”
This signals to me that the world Financial leaders know the dual problem facing the world, high inflation and slowing growth, and will fight the inflation battle first and deal with the slower economy later on. I definitely agree with this move.
Colombia I talked about how the Central Bank chief stated last week that he would do anything he could to stop the Peso appreciation, well here is an article from BLOOMBERG which can certainly be a catalyst for it. Clearly exporters are feeling the pinch and have been voicing it to the Government. It seems now they are listening. The currency has been very volitile and trading on thin volume. The Peso weakened 270 big figures in a week, with it moving 100 figures down and then up on Friday. I am small short dollars here thinking that it is temporaryly overdone.
Good Luck and Good Currency Trading.
A Meltdown Developing
The markets today were quite interesting. Crude made all time new highs topping out above $140 dollars per barrel. COLOMBIAN PESO melted down on the back of the Finance minister call to do anything necessary to stop the currency appreciation. Chile was close behind as were a large assortment of of Emerging Market Currencies. We have seen this all before and I think I want to see some follow through before saying that it will continue. Clearly the markets are nervous. Stocks are suffering and High Yielding currencies are under pressure. For now I will stay the course (see previous posts) and see what the market gives me.
Good Luck and Good Currency Trading
Fed holds Rates steady.
As expected the Fed left rates unchanged with a 9-1 vote. Fisher was the lone voting member looking for a hike in rates.
The opening line in the inflation paragraph read,
The Committee expects inflation to moderate later this year and next year.
Wishful thinking maybe but the statement was not hawkish enough for the market’s to expect a rate rise in the immediate future. Fed Fund futures which before the announcement were looking for 75bp by year end moved that expectation to 50bp. It would not surprise me to see this drift lower in the weeks ahead.
The future policy outlook stated that the committee would continue to monitor the situation an act as needed promote its duel goals of growth and price stability. The FOMC noted both downside risks to growth and upside risks to inflation. This is nothing new as the Fed Govoners have been talking like this for a while. I think this implies a very slight bias toward tightening but not enough to expect anything near term. I think that the duel risks to the economy (slow growth and high inflation) will keep the Fed on hold into next year.
Good Luck and Good Currency Trading
Welcome to the Jungle….
This is a short inspirational piece given to my son and his teammates after the final cuts for the Football team last year. I think it is quite a good piece. The boys were broken down by long, exhausting practices and a few seemed discouraged. But this piece really summed up what was done and why.
Every Morning in Africa, a Gazelle wakes up. It knows that it must run faster then the fastest lion or it will be killed.
Every Morning, a lion wakes up and knows it must outrun the slowest Gazelle or it will starve to death.
It really doesn’t matter if you are the Lion or the Gazelle….
When the sun comes up you better be ready to RUN !!!
During this year, we will sometimes be the lion and sometimes the gazelle. Everyday, we work you hard so that in any scenario, we WILL be successful. Sometimes we will be able to use our strength and skill to overpower our opponents like a lion. However, sometimes we will have to rely on our speed and elusiveness against a stronger opponent. WE MUST BE READY? So, when you are exhausted and your body is aching from hard practices, keep in mind why we are working you hard.
“WELCOME TO THE JUNGLE!!!”
This is definitely how it is in the “Real World” and in Trading. Someday’s you need to change your style to survive the markets. Remember the goal is to stay in the game. It is great to be correct, but if you have run out of capital and cannot trade on your idea what good does it do. I call this the ability to “Live to fight another Day”. Hard work, preparation and discipline are the key to enabling that to happen. “The Plan”, which we have talked about before, is the key to all this.
Good Luck and Good Currency Trading.
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