Federal Reserve

Obama's 'Zero' Legacy

Impunity hidden behind lies is what defines Obama’s Presidential legacy. To call his legacy "zero" is actually unrealistic praise; his legacy is deeply negative. He’ll be rewarded handsomely for it, by his masters - which never were the American public.

Japanese Yen Set For Biggest Plunge Versus Dollar In 18 Years

With the US dollar soaring to its highest since 2003 (up 10 days in a row), unprecedented moves in the Euro, Yen, and Yuan are now daily headine-makers. Overnight saw USDJPY near 111.00 (before rolling over a little this morning), pushing the pair to its best 2 week gain since 1988... and its second best 2-week gain since currencies floated.

3 Things: Retail Sales, Recurring Ignorance, & Return Reality

There was an awful lot of cheering about the recent retail sales report which showed an uptick of 0.8% which beat the analyst’s estimates of 0.6%. However, if we dig deeper behind the headlines more troubling trends emerge for the consumer which begins to erode the narrative of the "economy is doing great" and “there is no recession" in sight.

Goldman Reveals Its Top Trade Recommendations For 2017

  • Top Trade #1: Long US$ vs GBP and EUR
  • Top Trade #2: RMB weakening: Long $/CNY
  • Top Trade #3: Long BRL, RUB, INR and ZAR, short KRW and SGD
  • Top Trade #4: Long Brazil, India and Poland, FX un-hedged
  • Top Trade #5: Long 10-year US$ and EUR inflation
  • Top Trade #6: Long EURO STOXX 50 2018 dividends

Yellen Warns Of Excessive Risk-Taking In Testimony, Says Hike "Appropriate Soon", No Mention Of Election

Janet Yellen signalled that the US central bank is reluctant to delay its next increase in short-term interest rates "for too long", warning that keeping rates on hold could spur excessive risk-taking and adding that a rate hike could be appropriate "relatively soon." Yellen is due to say on Thursday morning that as the Fed sees the case for a rise in rates continuing to strengthen it "must remain forward looking in setting monetary policy".

Frontrunning: November 17

  • Dollar halts charge as bashed bonds steady (Reuters)
  • BOJ Fires Warning at Bond Market With Unlimited Buying Plan (BBG)
  • Trump Flouts Traditions Heading Into an Office Defined by Them (BBG)
  • Mr. Hedge Fund Goes to Washington, Looking for Ally in Trump (BBG)
  • Donald Trump’s Son-in-Law, Jared Kushner, Could Get Key White House Role (WSJ)

BOJ "Fires Warning At Bond Market" Sending Global Yields, Dollar Lower; All Eyes On Yellen

Global bond yields and the dollar both weakened after the Bank of Japan offered to buy an unlimited amount of debt at fixed yields, stabilizing the global bond rout, while investors awaited testimony from Fed Chair Janet Yellen that will help shape the outlook for interest rates ahead of a December rate hike that is now seen as near certain.