from what I could decypher, ben et al were more concern with the inflation and not much on growth.
so that implied hawkishness?
so that implied hawkishness?
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Dislikedfrom what I could decypher, ben et al were more concern with the inflation and not much on growth.
so that implied hawkishness?Ignored
DislikedAlways read and enjoy your posts NT.
I feel the housing market is a place for the fed to stockpile its inflation. It seems to me that inflation runs rampant when housing and the stock markets rise.
So my question is if the housing market continues to deflate and the stock market takes its imminent turn south are we going to see Fed rates drop and mortgages actually get much better in the next year?Ignored
DislikedECB: Clearly stated their intention to raise at the next meeting. After that, no "pre-commitment", but there is the possibility of the market seeing a pause after that.Ignored
DislikedThanks DD-please feel free to provide any insights you may have on market sentiment-BTW is there a custom indicator for this?
All kidding aside-the rise of the $ yesterday was not at all inexplicable-it relates to carry trades and how price move as they wind and unwind.
The price of GBP/JPY = GBP/USD x USD/JPY. When carry trades are unwinding, the $ appreciates vs the GBP and depreciates vs. the JPY. The opposite appleis when they're winding.
Thursday's sentiment was best described as risk aversion. Carry trades umwind with that kind of sentiment. The reason for the aversion of risk was due to how the numbers printed-higher inflation on the import prices and lower-growth numbers from retailers and a widened trade balance (wider trade balance is a drag on real GDP).
Those numbers were stagfltionary-Wall St. hates that situation because it puts the Fed in a very difficult policy position. The market sentiment was to avert risk and the carry trades unwound a bit.Ignored