Quantitative Easing

If you held bullish positions this week in commodities, equities and were short the dollar against pretty much any other currency, then this should have been a very successful week of trading. The dollar has been heavily sold against the majors, with respective multi-month highs and lows. The week has had 3 major events the German constitutional court announcing that the formation of the ESM wasn’t unconstitutional, the Dutch elections and Ben Bernanke turning on the taps of the antici…

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It’s the first day of the trading week for London, following an impressive closing ceremony for the Paralympic Games. Last week’s markets ended following a disappointing US NFP report on Friday and further weak macro data out of China at the weekend. Though this led to markets getting a slight lift as it increases the likelihood of further stimulus from both the US and China. Spencer Dale of the Bank of England speaking at Trinity College Dublin over the weekend stat…

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Equity markets rallied yesterday after the expected announcement by Mario Draghi that the European Central Bank (ECB) will indeed be supporting indebted European governments. He pledged the ECB will consider to purchasing their government bonds in a new programme dubbed Outright Monetary Transactions. These would be bought in the secondary market, and not indirectly from the governments and Draghi stipulated that this would only happen after the governments had sought financial aid from the…

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The UK government is attempting to reignite the economy with a plan to relax planning rules, to allow businesses and homes to expand and improve their properties. The expectation is that this supply side policy will help remove the bureaucracy and begin growth for the UK economy. Bank of England (BoE) announces interest rates and its asset purchase plan at 12pm (London). The benchmark interest rate is expected to be left unchanged at 0.5% and the asset purchase facility held at…

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-The late buy in the US session some have contributed to a note released by JP Morgan stating that there is a 75% chance of a 3rd round of QE -The political tension in Middle East continues with widespread criticism of the ‘massacre’ in Syria. -UK Retails Sales on the rise stemming the hope of a recovery and avoiding a second recession -Wall Street bonuses down by 25% compared to last year according to US regulators – CityAM -Article released by IIF…

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