Further Thoughts On Gibson’s Paradox
“The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.” – John Maynard Keynes “The Gibson paradox remains an empirical phenomenon without a theoretical explanation” -Friedman and Schwartz “No problem in economics has been more hotly debated.” – Irving Fisher Introduction Two years ago, I found a […]
US Dollar Tracks Yields Lower
The US dollar has been unable to find any traction as US yields continue to move lower. The US 10-year year is slipping below 2.03% in European turnover, the lowest level in ten months. The risk, as we have noted, is that without prospects of stronger growth and inflation impulses, the yield returns to where was […]
Hurricane Harvey Ripple Effects: Assessing The Impact On Housing And GDP
Black Knight reports Hurricane Harvey could Lead to 300,000 new mortgage delinquencies. How does this compare to Katrina? And what about GDP? Via Email from Black Knight Hi Mish, As we watch Hurricane Irma barreling through the Caribbean, on her way to Florida, Black Knight is releasing an updated and expanded analysis around the potential […]
EUR/USD: Expect A Rebound From The 135th Degree And U3 Line
Previous: Yesterday, Thursday, trading on the euro closed up. Mario Draghi’s press conference was the key event of the day, and volatility on the market surged as he was speaking. Everyone heard what they wanted to hear, but the bulls overpowered the bears. Draghi didn’t say anything new. He remained silent on the strength of […]
Dollar Bloodbath Continues Across Asia, Gold Tops Election-Night Spike Highs
Having plunged by the most in 6 months during the US day session, the dollar is continuing to get pounded across AsiaPac with Hong Kong Dollar and Yuan surging. Gold is extending gains, breaking above the spike highs from election night… The Dollar Index is in free fall…This is the 7th straight down day for the USD Index… […]
Yen, Commodity Currencies Capitalize As US Dollar Collapses
The US Dollar sank in Asia Pacific trade, building on losses sustained in the prior session against a backdrop of deteriorating Fed interest rate hike prospects. The priced-in probability of a third increase in 2017 as reflected in Fed Funds futures slipped to 22.6 percent, the lowest yet this year. That sent the greenback to the weakest […]
Gold Rises On Technical Buying, Weak U.S. Dollar
Gold prices ended Thursday’s session up $14.62 an ounce, helped by a slumping U.S. dollar. The greenback came under renewed pressure as the euro rallied after the European Central Bank raised its growth forecasts and indicated it was preparing to scale back its stimulus program. XAU/USD reached the $1353 area in Asia session today after […]
Equifax Momentum & Money Flow In Downtrend
Momentum, money flow, and rate of change have been in downtrend since April of 2016, and have been especially depressed since June of this year, as shown on the following Weekly chart of Equifax (EFX). The stock is down by 6.2% in after-hours trading tonight at 124.00 (horizontal red line in above chart), according to this Bloomberg tweet and report… Its […]
Indian Indices Trade Marginally Higher; Capital Goods Stocks Witness Buying
Stock markets in India are presently trading near the dotted line with positive bias. Sector indices are trading on a mixed note with stocks in the capital goods sector and metal sector witnessing maximum buying interest. Healthcare stocks are trading in the red. The BSE Sensex is trading up 34 points (up 0.1%) and the NSE Nifty is trading up 14 points (up 0.1%). The BSE Mid […]
Yuan Heads For Best Week In More Than A Decade As China Trade Data Is Resilient
Ok, so China trade data is out for August and it’s important to understand the context, which I’ll briefly run through. A couple of weaker-than-expected recent fixings (including Friday’s) and concurrent dips notwithstanding, the yuan is riding a truly epic hot streak. Coming off its best month since revaluation, the onshore yuan closed at 6.4850 […]
