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Another 150 pips.... Print
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Another 150 pips - Was last Thursday the day we've been waiting for?

 

None of us need reminding of the relentless grind of Brexit headlines which have been battering the Pound and the EURGBP exchange rate over the last few months.

Traders also had other things on their minds, with the Euro tumbling through late September and October. It was those Italians in revolt who dared to ignore edicts from their European masters.

The headlines in September suggested a Brexit deal was no more than days away and the Pound gave us a tradable 180 pip run against the Euro in a fortnight. Everything looked rosy....

Then the carpet was tugged away by Barnier and crew. Theresa was sent away with nothing but a red face and more homework to do on the Irish border.

That set up the next move as the Euro ran up against the Pound in the opposite direction. An a-b-c move, good for another 150+ pips....

 

From the blog

Gold Silver Ratio

Today is the Day & The Case for the Gold Silver Ratio

 

Will Christmas come early for the Donald? Will he get his demand of lower interest rates from Father Christmas Powell? Today is the day that could see a major reversal, or just the same old, same old.

A quick re-cap. The fed have made a couple of 0.25%, or 25 basis point, increases to the Fed funds interest rate this year. Signalled by the Fed, the market is fully expecting Wednesday the 19th December will bring the rate to 2.5%.

But. At his last announcement Fed chair Jerome Powell talked about rates which were just below the Neutral rate. Markets seem to have taken this to mean that today's rate increase, if it happens, will bring it to neutral, so no more rate increase will be signalled into 2019. Add in the Donald's insistence that any rate hike now is insane, we wait to see if it actually happens.

Either way, US dollar traders are in for some excitement and that just might include the precious metals and stock markets.

The case for Gold

This time last year all eyes were on BitCoin and the other 1400 or so Crypto's. These were the new Gold the hype merchants told us. Yes, the similarities were there all right. Gold has rocketed higher several times in a buyers frenzy to get in on the act. What makes it move?

Read more...

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