11 March, 2015 by The TZ Newswire Staff Comments Off on Bank Of Korea Unexpectedly Cuts Interest Rate To Record Low 1.75%, 24th Central Bank To Ease In 2015
Bank Of Korea Unexpectedly Cuts Interest Rate To Record Low 1.75%, 24th Central Bank To Ease In 2015
The currency war salvos just keep on coming. Moments ago the BOK unexpectedly (the move was predicted by just 2 of 17 economists polled by Bloomberg) cut its policy rate from 2.00% to a record low 1.75%, in what is clearly a full-blown retaliation against the collapse currency of its biggest export competitor, Japan, whose currency has cratered to a level that many in South Korea believe has become a direct subsidy for its competing exports. As such the only question is why the BOK didn’t cut earlier.
The Korean Won took a few milliseconds to realize what the proper reaction is:
11 March, 2015 by The TZ Newswire Staff Comments Off on Poll: When will dollar-euro hit parity?
Poll: When will dollar-euro hit parity?
As the euro continues to flirt with 12-year lows against the dollar, when do you think it will reach parity with the U.S. dollar?
11 March, 2015 by The TZ Newswire Staff Comments Off on 3 Engaging Natural Gas Charts Make This Interesting Here
3 Engaging Natural Gas Charts Make This Interesting Here
Just checking in on the commodities and today is a little more interesting than most. Natural Gas continues to consolidate sideways but after repeated spikes down, the price seems to be stabilizing.
Chart 1
11 March, 2015 by The TZ Newswire Staff Comments Off on "Monetarism Hasn’t Worked Anywhere" – Reality On China, Finally
"Monetarism Hasn’t Worked Anywhere" – Reality On China, Finally
11 March, 2015 by The TZ Newswire Staff Comments Off on The Mystery Of America’s Missing Wage Growth Has Been Solved
The Mystery Of America’s Missing Wage Growth Has Been Solved
One of the biggest conundrums, one that has profound monetary policy implications, and that has been stumping the Fed for the past year is how can it be possible that with 5.5% unemployment there is virtually no wage growth. The mystery only deepens when the Fed listens to so-called economist experts who tell it wage growth is imminent, if not here already, and it is merely not being captured by the various data series.
11 March, 2015 by The TZ Newswire Staff Comments Off on Embattled euro licks wounds in Asia, still vulnerable
Embattled euro licks wounds in Asia, still vulnerable
The euro wallowed just above a fresh 12-year low having faced an onslaught this week as the ECB kicked off its 1 trillion euro bond-buying campaign.
11 March, 2015 by The TZ Newswire Staff Comments Off on Deutsche Bank Asks “Is The S&P Ready For Rate Hikes?” (Spoiler Alert: No)
Deutsche Bank Asks “Is The S&P Ready For Rate Hikes?” (Spoiler Alert: No)
Despite plunging macro data and stumbling earnings expectations, Deutsche Bank’s (reluctantly less sanguine) strategist David Bianco notes that ECB QE, and a still accommodative Fed managed to push the S&P to 2100. However, as he explains below, policy normalization risks remain, particularly for the dollar and long-term yields. We don’t see a quick recovery for oil prices. Strong job growth and falling unemployment despite still slow GDP suggests that Fed hikes are on the horizon and likely strengthen the dollar further.