Former MPC member Blanchflower joins the UK Labour Party's economic advisory committee

The UK opposition Labour Party has announced its panel of economic advisers in a bid to gain credibility Bloomberg report The group includes former BOE MPC member David Blanchflower,and Nobel Prize winner Joseph Stiglitz Also on the team are Thomas Piketty, author of best seller "Capital in the 21st Century", Mariana Mazzucato of Sussex University, Anastasia Nesvetailova and Ann Pettifor both of City University in London Shadow fin min John McDonnell...

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German committing "economic suicide" in its acceptance of refugees

So says the Czech fin min  Andrej Babis on TV Prima. budget spending on handling refugee crisis will hurt the German economy system of mandatory quotas for migrants will fail most refugees are economic migrants headed to Germany A reminder of the economic cost of / fall-out from the refugee crisis that I've highlighted here previously Germany is expected to take 800,00-1m refugees/migrants this year Eurozone recovery is already fragile...

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Forex Afternoon Wrap – 22/09

  Yen gains as mild risk aversion mood sets in! Today’s Economic Data: Australia HPI q/q 4.7% vs. 2.4%; HPI y/y 9.8% vs. 8.0% Swiss Trade balance 2.87bn vs. 2.75bn Swiss exports m/m -2.4% vs. -2.3% previously; imports m/m -4.0% vs. -1.8% UK PSNB 11.3bn vs. 8.8bn; PSNB ex. banks 12.1bn vs. 9.2bn UK CBI trend selling prices -8 vs. -5; total orders -7 vs. 0 Later: US HPI BoE Shafik speech Fed Lockhart speech The markets opened to another...

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Euro turns upward as US stocks give back gains

2015-09-21 00:00 S&P 500 up just 5 pointsBiotech stocks are under pressure and the Nasdaq has fallen into negative territory. The S&P 500 is up just 5 points to 1963 after rising as high as 1979.One of the catalysts was a tweet from US Presidential candidate Hilary Clinton lamented price gouging in pharma and said tomorrow she will outline a plan "to take it on."The negative correlation with EUR/USD and stocks is rocky at best. We don't...

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China's Li says there is no basis for further yuan depreciation

2015-09-21 00:00 Chinese premier out on ReutersChina aims to develop open transparent capital marketsChina does not want to engage in a currency waraiming for long term stability in capital markets           Chinese premier Li - No currency war with yuan depreciation Source link: http://news.forexlive.com/!/chinas-li-says-there-is-no-basis-for-further-yuan-depreciation-20150...

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GBPUSD moves above broken trend line

Trend line break at the 1.5572 area The GBPUSD is pushing above topside trend line resistance at the 1.5572 level (see daily chart below). The price is also above the 61.8% of the move down from the August high to the September low. That level comes in at 1.55646  These levels will now be close support for the pair.  The next major targets comes in at the 1.5670-1.5689 area.  These were swing highs from July.   Then 1.5716-22   Source:...

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USD/JPY continues to cruise higher, what's next

USD/JPY now nearly flat on the session After falling as low as 119.06, USD/JPY is threatening 120.00. Some minor offers may block its path but the place to watch is stocks. At some point, you have to pick a side in trades like the Fed. From where I stand it's dovish and that's good for stocks and generally bad for the dollar. But one place it's 'less bad' is USD/JPY because the yen slides on risk appetite. I don't understand why stocks have been...

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Fed Mouthpiece Confirms FOMC Concerns On Global Market Turmoil

Just hours ago, we asked if the Fed's unofficial media mouthpiece had leaked the Fed decision when a WSJ colleague took to Twitter and, quoting Jon Hilsenrath, said the following: "For Yellen, who likes to arrive three hours early for a flight, raising rates without preparing markets would be out of character." To wit: So did Hilsenrath just "prepare" markets with a two hour advance notice of what to expect? Or did he simply add to the Fed's communication failure by "hinting" the market to expect one thing, while Yellen will unveil the opposite?...

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What the Federal Reserve will (and should) do today

Almost time to deliver the verdict The dovish case, and this is what I think will happen, is that ultimately, the Fed won't have the confidence or perhaps the courage to hike because they're terrified that markets will kick and scream. The World Bank, the IMF and G20 ministers  have warned Fed officials that if they hike there will be consequences. The biggest danger is from emerging markets. Brazil and other parts of Latin America and...

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100 day MA today but not sustained

The 100 day MA at the 1.55185 level was broken yesterday with the high price reaching 1.5527 before moving back lower. Higher wages was the catalyst for a sharp moved higher in the GBPUSD yesterday.  The move higher continued today with the pair extending to the highest level since August 26th.  That pushed the price to 1.5548.   Although higher, the path traveled has been a rocky one with swings up and down along the way...

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ForexLive European morning wrap: Cautious markets again as the FOMC reckoning looms large

2015-09-17 00:00 Forex news from the European morning session 17 SeptemberNews:                 SNB leaves key interest rates on hold Swiss govt says economic growth will stay below average in 2016 SNB's Jordan says he has no exchange rate targets Swiss Franc is still overvalued says SNB's Jordan ECB says it's premature to assess impact of current events on inflationChina...

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FOMC: Time for sense or more excuses?

2015-09-17 00:00 The FOMC is finally upon us so what will they give us this time?The financial world has been going FOMC crazy here's roundup of stories we've brought you recently;ANZ expect a rate hike from the FOMC ... but beware a government shutdownMitsubishi UFJ says no FOMC hike this timeCiti has 2 FX plays for trading the FOMCJPMorgan says the FOMC decision on Thursday is a coin flipRBC "holding out hope" that the Fed will...

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China's Xi says economy resilient and has huge potential

2015-09-17 00:00 Chinese president out on state radio bigging it up for the masses          plenty of room for manoeuvreChinese economy has ability to maintain long-term medium to high growth rateWe'll see about that one eh?Earlier the Chinese fin ministry announced that they will issue 3month bonds on weekly basis starting from Q4 and says bond issuance plan is to satisfy requirement...

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GBPUSD rally runs out of steam

I mentioned earlier that the pound had a lot of congestion between 1.5460 and 1.5527 and we've topped out at 1.5529 GBPUSD H1 chart At the time we were trading at 1.5422 and the trade was taking the breaks of the upper levels. The top one has been one level too far and now we're seeing some profit taking. I would like it to sit above 1.55 for the remainder of the day, to see support build but it looks like the broken 50.0 fib is doing...

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“Be neither a conformist or a rebel, for they are really the same thing. Find your own path, and stay on it.” -Paul Vixie

When’s the last time you jumped of a cliff because everybody else was doing it? Okay, bad example. Have you ever joined an endless line of people in the super market checkout line ready to pay, and waited 20 minutes before realizing there was another open register right beside you? No? How about this one…You patiently wait outside with a large crowd of people to get into the door at a movie or bar when someone dashes right in with no second...

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Gains extend to 180 pips today

Gains extend to 180 pips today Carney and the gang are continue to testify in Parliament and the overall tone is upbeat on the economy inflation despite the recent market turbulence. The pound is soaring and has cut through the 50% retracement of the August decline and now through the 100-day moving average. The next level to watch is 1.5569, which is the 61.8% retracement of the Aug drop....

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UK labour data may be enough to see more MPC members voting for hikes at next meeting

2015-09-16 00:00 UK labour data will keep the domestic economy on the right track and the BOE hawks happyToday's data is great news for the UK. The jobs market remains strong and the wage data is as good a sign of that as anyLike everyone else the UK faces export weakness in the current global market and that has been the main driver for weaker sector data from the UK. When we were recovering back in 2013 both the domestic an international parts...

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