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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:

EUR

Discuss EUR in this thread
 
Ashraf Laidi
London, UK
Posts: 0
13 years ago
Apr 27, 2011 18:55
Now that QE2 will be over in June, it will be ALL ABOUT whether Fed will STOP re-investing its mortg payments or allow the securities to expire. THAT will be the next policy tool

April 27, 2011 13:46 ET : The FOMC statement produced changes in the description but ended up with a similar conclusion. The inflation reference was different in that it descried it to have picked up and Commodity prices have risen significantly but the conclusion remains the same i.e. longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued. There is no mystery that . . .

There is no mystery that the $600 bln QE program will end in June. The more important part for the markets is the fate of the Feds mortgage principal payments, which the Fed will decide to what extend it will re-invest them (a way to extend the easing) and to NOT re-invest them and hence, allow a gradual shrinkage of the balance sheet as these holdings expire. The FOMCs next meeting will be on June 22, at which point the Committee would have ended its POMO programs but may reinvest part of its mortgage payments, which will become the key lever of shifting liquidity and monetary policy depending on the interplay between growth, unemployment and inflation. These are the points that will likely be communicated by Bernanke at todays conference. Some FX and bond traders may have had their attention drawn by todays inflation reference, but I continue to see the road to $1.40 unhinged for EURUSD as is clarified in this video charts presentation:
http://bit.ly/ kONwpr


Ashraf
DaveO
N.Cornwall, UK
Posts: 5733
13 years ago
Apr 27, 2011 18:40
ok the 4700 sym ext held for a while but gonna break it now methinks
subway90
Posts: 1078
13 years ago
Apr 27, 2011 16:41
i guess few regulars are back with regular programming... :)

4700 shorts filled... now holding 4 lots short with avg. of 4512.50....

short signal generated on 8 hour but no confirmation for bigger retrace yet.... could extend higher but upside will be limited....

minor support formed around 4580/90.... could see drift lower to that area b4... clear break and close below that area could signal bigger correction toward 4350/70 area but only break of 4493 confrims....

if 4580/90 holds.. could push to marginal highs but not substantially higher...

looking at bigger picture... as long as 4280/4300 holds... see continuation higher toward 5000/5100 area...

gl/gt
DaveO
N.Cornwall, UK
Posts: 5733
13 years ago
Apr 27, 2011 15:23
mornin Chloe. Nah, the royal family have made some economies but it should still be a spectacle worthy of our smart soldiers, horses, pomp and ceremony. Worthy of a world following on TV.

What was completely unecessary was the politicians making the occasion a public holiday. The cost to GDP for one extra non productive day is very significant and in the face of the austerity measures you could say it lacked common sense and sensitivity. I have written to David Cameron expressing my feeling but I wish the royals all the luck and good health in the world. I am a royalist !

Down with the politicians !
chloethebull
halifax, Canada
Posts: 1183
13 years ago
Apr 27, 2011 15:12
dave whats ur opinion on the wedding ..personally i think its a huge waste of much needed funds..lol..will u b glued to the telly..lol..ok gl/gt:)
DaveO
N.Cornwall, UK
Posts: 5733
13 years ago
Apr 27, 2011 15:06
Gonna go do a honey-do I been delaying. Back later. Mkt prob drift on the tide few hrs
Sir Ignore
United States
Posts: 3068
13 years ago
Apr 27, 2011 15:01
Rain? we can take it:)
Sir Ignore
, United States
Posted Anonymously
13 years ago
Apr 27, 2011 15:01
happenin? nice 1 hr bull flag.....

buy on dipz...eh?

all euro models pointin north..
my 2 pence

DaveO
UK
Posted Anonymously
13 years ago
Apr 27, 2011 14:59
after about 6 weeks of continuous sunshine in uk south its lookin like the royals could get wet on Friday.
DaveO
N.Cornwall, UK
Posts: 5733
13 years ago
Apr 27, 2011 14:58
mornin skipper.