BRC Shop Prices
The BRC Shop Price Index in the UK grew in January at a 1.4% pace over the prior year, slower than the prior month which grew at 1.7%a clip year over yer.
Japan’s Trade Balance
Japan’s Trade Balance in December again came in as deficit, while the Adjusted Current Account Total grew. The Yen weakened following the release moving back toward the 77 handle.
- Trade Balance – Survey:-135B Actual:-145B Prior:-585B
- Current Acct Total – Survey:340B Actual:303B Prior:138B
- Adj. Current Acct Total – Survey:625B Actual:752B Prior:480B
usd/hkd trading in a downward wedge.
usd/hkd is trading in a downward wedge signaling that the pair is still in a downward trend.
usd/sgd continue to creep around Oct-2011 lows.
usd/sgd continue to creep around Oct-2011 lows showing that there is some buying interest around these levels.
usd/inr testing the 61.8% retracement level.
usd/inr testing the 61.8% retracement level.
usd/twd old support line becomes the new resistance line.
After usd/twd broke through this support line it has now provide resistance for the pair twice and we see here in this chart.
Italian PM Monti says wouldn’t mind if Italian banks tapped ECB funds to buy Italian bonds
The mentality of the market is that this is right. Central bank gives banks money at 1% or less and they buy Italian Bonds and earn the spread. The danger with such mentality is it promotes bubbles and takes the element of risk out of the equation. People buy because it is risk free. Much the same way house buying was risk free.
The US, UK, ECB flood banks with money, they buy bonds, interest rates come down and they hope for a recovery to happen. What if it does not (i.e.,the equivalent of house prices not going up)? What happens if they spur on a massive recovery and they have to unwind the trillions of dollars on their balance sheets and ignite inflation in the process which is out of control? What happens if the money goes into commodities and leads to multiple bubbles?
When too much money is sloshing around it encourages bad behavior. The focus is not on risk but solely on reward. Focus should be on risk first, then reward.
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