The Irresponsible ECB
FRANKFURT – The Dow Jones Industrial Average’s recent “flash crash,” in which it plunged by nearly 1,600 points, revealed just how addicted to expansionary monetary policy financial markets and economic actors have become. Prolonged low interest rates and quantitative easing have created incentives for investors to take inadequately priced risks. The longer those policies are maintained, the bigger the threat to global financial stability. Read More @ https://www.project-syndicate.org/commentary/ecb-monetary-policy-stock-market-volatility-by-jurgen-stark-2018-02
Bitcoin has ‘pretty much FAILED’ as a currency, Bank of England boss Mark Carney declares;
BANK of England (BoE) chief Mark Carney has said bitcoin has “pretty much failed” as a currency by standard benchmarks and is neither a store of value nor a useful way to buy items. The governor made these comments whilst giving a talk to students at London’s Regent’s University. Mr Carney said: “It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.” Like many others he believes that blockchain, the underlying technology which helps power bitcoin, could be used as a way to verify financial transactions in a decentralised way. He also spoke about Brexit and said that in order to make the UK’s departure from the European Union (EU) as smooth as possible, British regulators intended to give financial institutions “the benefit of the doubt, beyond the last minute”. https://www.express.co.uk/finance/city/921169/bitcoin-bank-of-england-cryptocurrency-mark-carney-brexit-EU
USD TECHNICAL CHART @ H1 SHOWS BULLISH HEAD AND SHOULDER – BE CAUTIOUS FOR A BREAKOUT OR A BREAK DOWN.
NEWS THAT MIGHT AFFECT YOUR TRADES TODAY.
- NZD data was all good for a stop for the price t move south; we expect price will be in favor against the US today.
- 6.15am – RBA MINUTES – was an hawkish one; we can expect a rate hike sooner then we think – Members commenced their discussion of the global economy by observing that global GDP growth in 2017 had exceeded the expectations of most forecasters. The pick-up in growth had been synchronised across economies and was likely to be sustained in 2018, supported by accommodative monetary policy across the globe and an upturn in international trade. We maintain BUY for AUD.
- 6.00pm – German PPI & ZEW data is expected to be good and we maintain buy for EUR.
- 11.00pm – Euro Consumer Confidence data and we are expecting the data to be good.
Overall the market consolidates and awaits FOMC minutes early Thursday morning. We stay cautious till the minutes are released by FED.
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