As I expected the fed is starting to signal end of their money printing program and willigness to keep on inflating the money supply.This is also a signal that we should have some sustained pullback in equities or at wost a cap on this rally and dollar weekness. The oil price got a nasty shock from all this which should imply further dollar strengh in to tomorrow.
i keep my prediction of a dollar bottoming and a reversal upwards as a trend
Qin, I read their full report today and watched the meeting live on TV. If things are going well in markets forward, then they will probably increase it by 0.25% in Oktober. They actually thought about increasing now in September. But as you now see, oil is getting a big hit. I don't think this is over yet. But their forecast for now is in October. In Norway things are looking allot better than their forecast, but as I mentioned earlier, many times, Norway must also look after their export, so they are reluctant to have a strong NOK when the rest of the world is still struggling. We will see, good luck.
FXHandler, I meant that market is betting that FED will keep printing money and keep low interest rate......so USD was going down before the FOMC........
I am waiting for the chance to add more shorts on USD/NOK now........
What do you think about Norges Bank 's report about interest rate today? I think they maybe will raise interest rate in DEC........
ok, guys.........my positions is making money for me recently, I am not crazy think it will go to 5 tomorrow.....nothing goes straight up or down........I am waiting for it pull back and add more shorts positions......
(Lat part of my essay below - please excuse the length of the essay, Ashraf)
What the FED should not like is Oil climbing, to say, above 100$, the trade and macro imbalances to increase and the Chinease to show reluctance in buying Treasuries. What the FED does want to see is GDP growth returning and the unemployment rate receding.
What we learnt last summer is that Oil at 150$ cuased a global crash and so did Euro at 1.60 (for the EU). This time around, I dont think the FEDs will not react to Oil at 100$. They will HAVE to - because they know whats coming after that - that Oil spike will kill the recovery. On the other hand, EU with Euro at 1.60 will, once again, be able to do nothing and witness a follow on recession. The US path to growth is via revaluing the Dollar while the EU does not hold such an option but has to follow a longer and much more painful path conituing a WWW style recovery. All this while BRICs and the Emerging markets are laughing all the way to the Bank.
In a year's time, Gold and Oil should rise to 1300 and 100, S&P and Shanghai should rise to 1300 and 4500, VIX should rise to 40, the 10 year rate should fall to below 3% and the FED funds rate should increase to 1%. There is no math behind this. These numbers are just educated guess work at best.
The sure thing, I think, is Oil going to 100 and Euro to 1.60 causing a new crisis in the next few months.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(2 years ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(2 years ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(2 years ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (2 years ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (2 years ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (2 years ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(2 years ago)
i keep my prediction of a dollar bottoming and a reversal upwards as a trend
I read their full report today and watched the meeting live on TV.
If things are going well in markets forward, then they will probably increase it by 0.25% in Oktober. They actually thought about increasing now in September.
But as you now see, oil is getting a big hit. I don't think this is over yet. But their forecast for now is in October.
In Norway things are looking allot better than their forecast, but as I mentioned earlier, many times, Norway must also look after their export, so they are reluctant to have a strong NOK when the rest of the world is still struggling.
We will see, good luck.
I meant that market is betting that FED will keep printing money and keep low interest rate......so USD was going down before the FOMC........
I am waiting for the chance to add more shorts on USD/NOK now........
What do you think about Norges Bank 's report about interest rate today? I think they maybe will raise interest rate in DEC........
Good luck!
For me it seems like a Long-term-joke
sorry
Can one see the program you did yesterday . . . ASHRAF WILL BE GUEST HOSTING CNBC's WorldWide somewhere online?
Thanks,
Cappy
What the FED should not like is Oil climbing, to say, above 100$, the trade and macro imbalances to increase and the Chinease to show reluctance in buying Treasuries. What the FED does want to see is GDP growth returning and the unemployment rate receding.
What we learnt last summer is that Oil at 150$ cuased a global crash and so did Euro at 1.60 (for the EU). This time around, I dont think the FEDs will not react to Oil at 100$. They will HAVE to - because they know whats coming after that - that Oil spike will kill the recovery. On the other hand, EU with Euro at 1.60 will, once again, be able to do nothing and witness a follow on recession. The US path to growth is via revaluing the Dollar while the EU does not hold such an option but has to follow a longer and much more painful path conituing a WWW style recovery. All this while BRICs and the Emerging markets are laughing all the way to the Bank.
In a year's time, Gold and Oil should rise to 1300 and 100, S&P and Shanghai should rise to 1300 and 4500, VIX should rise to 40, the 10 year rate should fall to below 3% and the FED funds rate should increase to 1%. There is no math behind this. These numbers are just educated guess work at best.
The sure thing, I think, is Oil going to 100 and Euro to 1.60 causing a new crisis in the next few months.