Don’t let the dollar’s strength confuse you Miserable gold generates even more bearish technicals, but is now oversold Silver is relatively stable given gold’s action; the ratio is down from 96 to 94, but still very high. Net short the largest since May 2019. Dollar remains strong but gold is now holding just above $1,700 […]
Some thoughts on Spain and a Spanish bailout — FIU
There are continuous rumours and speculation that a Spanish bailout will be announced in the coming weeks. However there are a number of problems in this happening. Firstly the market is missing a big problem with this- there are no funds available for a bailout from the ESM. The ESM currently has €32bln in capital. […]
Poor’s downgraded the credit rating of Spain
Last night Standard and Poor’s downgraded the credit rating of Spain to BBB-, from BBB+. This came as a bit of an early surprise for the bond markets. The market was waiting on the other major bond rating company Moody’s to complete its review of its current Baa3 rating which it started in June. Rating […]
Central Banks are seemingly the saviour of the world’s economy and financial markets — FIU
After Ben Bernanke’s speech at Jackson Hole where he highlighted the weakness of the US labour market in the Fed’s failing of its dual mandate, Friday’s very weak employment report has given rise to more speculation as to whether the FOMC on Thursday will announce a new large scale monetary easing. As I have argued […]
What is Bernanke’s plan? — FIU
When I listen to Central Bankers these days I am hearing so much less than what the rest of the markets seem to hear. So when last Friday I heard Bernanke stating that the bar for further QE was very high, others heard him say that the Fed was just about to embark on another […]