There's been some worry in the markets after the Wednesday suggestion that the Fed could be tapering off-though far from ending-the QE Infinity program sooner rather than later.
http://diaryofarepublicanhater.blogspot.com/2013/05/overnight-huge-selloff-in-dollar-yen.html
Sumner had taken the talk of Fed hawks as proof that 'the fiscal multiplier is zero.' The market sees it differently.
http://diaryofarepublicanhater.blogspot.com/2013/05/sumner-again-throwing-stones-at.html
As I said yesterday-see the link above over the huge dollar-yen selloff-I lost a lot-using fake money in a practice account -on the dollar-yen when it collapsed from $103 to 100 overnight. So I'm back in the dollar-yen today even though it fell under $101 again. I now have 1500 orders on it; my rationale is that just like you can't fight the Fed you can't fight the JCB this time around and they want it at $102-$103.
Investing.com's Kathy Lien argues that this position is actually being moved by the U.S. equity market. It may finish under $101 if the U.S. finishes down more than .75% today, otherwise it should finish over.
A good reason for bullishness are these comments by Bulliard:
"Inflation is the U.S. data "wild card" and needs to move closer to target before theFederal Reserve shifts towards a tapering of its bond purchase program, St. Louis Federal Reserve Bank President James Bullard told CNBC on Friday."
http://diaryofarepublicanhater.blogspot.com/2013/05/overnight-huge-selloff-in-dollar-yen.html
Sumner had taken the talk of Fed hawks as proof that 'the fiscal multiplier is zero.' The market sees it differently.
http://diaryofarepublicanhater.blogspot.com/2013/05/sumner-again-throwing-stones-at.html
As I said yesterday-see the link above over the huge dollar-yen selloff-I lost a lot-using fake money in a practice account -on the dollar-yen when it collapsed from $103 to 100 overnight. So I'm back in the dollar-yen today even though it fell under $101 again. I now have 1500 orders on it; my rationale is that just like you can't fight the Fed you can't fight the JCB this time around and they want it at $102-$103.
Investing.com's Kathy Lien argues that this position is actually being moved by the U.S. equity market. It may finish under $101 if the U.S. finishes down more than .75% today, otherwise it should finish over.
A good reason for bullishness are these comments by Bulliard:
"Inflation is the U.S. data "wild card" and needs to move closer to target before theFederal Reserve shifts towards a tapering of its bond purchase program, St. Louis Federal Reserve Bank President James Bullard told CNBC on Friday."
"One wildcard for the data in the U.S. isinflation. Numbers have come in quite low. Inflation has been, by our preferred measures been about 1 percent over the last year—way below our target," said Bullard.
"Before I am in favor of tapering I would like to see some assurance that inflation is going to move back towards target," he said.
This seems to me as a particularly bullish sign, not just for the content but who it's from. Bullard-or Bull-iard. His name sound bullish but he's a known hawk. For him to speak dovish would seem a very bullish signal.
Just to show he hasn't had a complete lobotomy, Bullard did worry about what QE is doing to the small savers.
P.S The latest has the Dow only down b 42 points which isn't too bad-considerably benath LIen's number for under 101.
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