GBP Relief Rally Starts Early, Perhaps Too Early?

Why The Fed Is Right To Fear Inflation
This week, as the minutes from the last Fed meeting were analyzed, it was suggested that there were hints that the central bank would be raising interest rates again next month. The market responded with a small hissy fit, which will no doubt explode into a full blooded tantrum is the event actually occurs. That has

Benchmarks Open Modestly In Green
Stocks are indicated to open modestly in the green today, but the major indexes appear set to end this week in the red, the 4 th  week in a row of negative closes for the S&P 500. Weak earnings,

Positive Wal-Mart Earnings Offset Fed Drag
The major indexes are on track for a modestly negative open this morning, with Fed centric uncertainty coming back to the fore following Wednesday’s minutes of the last FOMC meeting. Partly offsetting the Fed drag is the positive Wal

FOMC Minutes Extend Dollar Gains
We felt strongly that the FOMC minutes would be more hawkish than the statement that followed the meeting, and we were not disappointed.   However, our caveat remains:  the minutes dilute the signal that emanates from the Fed’s leadership, Yellen, Fischer, and Dudley.  The latter two speak in the NY morning. 

Retailing in America: Valley Girl (Interrupted)
Ah, the 80s. It’s safe to say many Generation X-ers have certain movies inexorably etched in their minds. 1983’s Valley Girl, featuring an as-yet-to-be-discovered Nicholas Cage as ‘Randy’ is surely one of them. While there is little doubt Director Martha Coolidge found inspiration in Shakespeare’s Romeo & Juliet,

Benchmarks On A Weak Open
The major indexes are on track for another weak open, but a lot will depend on the market’s reading of the minutes of the last Fed meeting that come out later this afternoon. The never ending parade of weak

Market's See-Saw Action Continues
The market’s see saw action continues, with the major indexes expected to start today’s session modestly in the red, apparently in solidarity with the pullback in oil prices . It is hard to make sense of the market’s day

Capital Markets: The Meaning of Sterling and Aussie's Advance Today
The US dollar is mostly weaker today.   It appears to be consolidating the gains scored since the reversal on May 3. Sterling and the Australian dollar are leading the way early in Europe.   The Australian dollar’s gains appear more intuitively clear.   The minutes from the recent RBA meeting indicated that it was

The Next Big Catalyst For Stocks: Improvements In Japan and Europe
Last Monday we said the data point of the week was economic growth in Europe, specifically Germany.   Most eyes have been on U.S. data. When there’s blame to go around, the “slowdown” in China tends to be the target.  But as we’ve discussed, now that the global economic threat of the oil bust has been removed

Are Dollar Fundamentals Lagging the Technical Improvement?
The US dollar extended its recovery that began on May 3.   Its technical condition remains constructive, even though up until now, the gains are still consistent with a modest correction rather than a trend reversal.   The details of the employment report, if not the headline, coupled with the 1.3% increase in

Global Capital Markets: What's Happening
The most notable thing is not what has happened, but what has not happened.   The market has not responded to the soft Chinese data over the weekend.  Chinese equities began softer but recovered fully and the Shanghai Composite closed on its highs.  The MSCI Asia Pacific Index is snapping a two-day losing streak

Major Indexes On Track For Modest Opening
The major indexes are on track for a modestly positive open, but they have lost ground the last few sessions, and it shouldn’t surprise if today’s session ends up in the red as well. Stocks were weak in Europe

Watch for AUD and GBP Opportunities
With many European markets closed for Whit Monday, it was a relatively quiet and subdued North American session for currencies. The unexpected drop in the Empire State manufacturing survey led to initial losses for the greenback but investors quickly shrugged off the release with the dollar ending the day higher