Even for the most bullish, Friday's action has got to be a big worry .....

ref :- General It's all been going on, and not much of it offers any encouragement to those bulls maintaining the faith in economies and markets. The resilience of investors has been remarkable .... for example, by Thursday night the S&P 500 had recouped about 70% of the falls suffered at the end of last year despite all the worries about a slowing economic picture (particularly globally), trade conflict, Brexit, inverting yield curves .... you name it. Friday was a big day however, and not in good way ..... and we'll have to wait and see if that resilience can withstand the growing number of signals that would seem to point the other way. So what happened on Friday ? Very briefly. .... and

The Fed -- not so much "cautious" as "cooing like a dove"…

ref: - "Fed Keeps Interest Rates Unchanged; Signals No More Increases Likely This Year”, The Wall Street Journal We're pointing you towards this WSJ article but frankly, any respectable financial news outlet would suffice. The Fed's monetary policy stance is the big news from yesterday, supplanting even the interminably shambolic Brexit process. The decision to leave rates where they were coming as absolutely no surprise to anyone of course, but the dovish nature of Chairman Powell's statement and of what was revealed about the Fed's current thinking was a bit unexpected for many observers. The so-called "dot plot" indicated that of the 17 members of the Fed's Open Market Committee responsib

You can save your breath, Donald .... the market will sort it out (maybe) ref :- "Trump Wants

Ever since that seminal day for both US politics and the world at large that Donald Trump first set out on the road to the White House, the subject of underhand actions by Chinese authorities to artificially weaken the Chinese Yuan has been a constant theme. The accusation of Chinese currency manipulation in order to gain an unfair advantage for exporters plays right into wider charges of trade malpractices that prompted the President to slap tariffs on Chinese exports and start down the route towards trade conflict. Whether one agrees with Mr Trump's methods or not, it's pretty indisputable that a good number of the allegations that he levels against Beijing hold water ..... and in the pas

Only half-right means WRONG ..... but hey, these things happen so what's the next trade ?

ref :- "Goldman Cops to Misstep on Dollar Call, Eyes Yen Trade Instead" , Bloomberg Markets So what ? Nobody gets every trading decision right and it's not as though we're unsympathetic but describing Goldman Sachs Group's rationale behind their recent "Short US dollar" trade as "half-right" is a pretty generous way of looking at it. In a note late on Friday Goldman pointed out that they had been stopped out of the trade the previous day -- in other words, the market had moved against them to the point where their stop-loss order was activated, jettisoning the trade at a loss before it grew any larger. Goldman's call to sell the Dollar Index (DXY) came in early January, immediately after a

"Turning Japanese" ..... by The Vapors, 1980

ref :- "The Fed and ECB Confront a New Normal That Looks a Lot Like Japan's" , Bloomberg Markets Of the many interpretations of the lyrics of the Vapors biggest hit doing the rounds all those years ago, one or two may have been a touch salacious but the band themselves maintained that the song was merely a contemplation of youth and angst. This Bloomberg piece about how the rest of the developed world may be dragged into the economic quagmire that Japan has been mired in for so long has little to do with youth, but you could be forgiven if it left you fraught with angst. The Japanese economic model, so powerful when this song was released, has had an unhappy history over the last twenty year

The President doesn't subscribe to the rule about both wanting your cake and eating it

ref :- "Trump Might Not Like It, but the Dollar Should Be Strong" , STREETWISE in Markets, The Wall Street Journal 5/3/19 President Trump was teeing off at the Federal Reserve and its Chairman Jay Powell again at the weekend. Nothing particularly newsworthy about that, he does it all the time ..... but the WSJ's slant on Mr Trump's loaded comments is that he picked an odd time to unleash them. True .... and even if it wasn't, the whole "President - v - The Fed" thing is endlessly fascinating not least because most would agree that in the modern era it is entirely inappropriate for the President to be putting pressure on the central bank in this way -- not that such a thing would bother him

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