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The inevitability of further asset purchases from the Fed, BoE, ECB and BoJ enhance the case for gold and silver. ...

Ashraf's Video for Reuters Thomson illustrating the similarities of the interest rate cycles between the Fed and the Bank of England and QE2 by the Fed will lead to the same by the BoE http://bit.ly/9VAefQ ......

STERLING's NEW BOE REALITY. The underlining negative of the British pound continues to be the Bank of Englands insistence that inflationary pressure remain temporary, as well as the emergence of BoEs new MP member, Martin Weale, whose double-dip forecasts for UK reduced expectations of a 2010 rate...

AS GOLD HITS 8-WEEK HIGHS vs. all major currencies (except the yen) despite the euros broadening gains, the case for the yellow metal remains bolstered by what seems to be the inevitable path for QE2 from the Federal Reserve and the Bank of England. I made the case for $1270 in previous analysis...

ITS ONLY TUESDAY as JPY makes the transition from rising to soaring amid inaction from Japanese officials. Readers of this website have been warned of 81-80 in USDJPY since January before it was fashionable to do so. Cracks inside the FOMC about renewing QE, forecasts of a possible UK recession by...

Despite todays inflation data for July showing CPI falling to its lowest level since November 2009, Bank of England governor Mervyn King will still be obliged to write his now somewhat customary letter to the Chancellor to explain the price overshoot. Even retail prices which has been the...

3-WAY FOMC SPLIT? How about a 3-way split at the FOMC tomorrow? Kansas Fed's Hoenig keeps his (hawkish) dissent against the "exceptionally low rates" lingo, St. Louis Fed's Bullard votes (dovish) for implementing bond buys on the spot-in line with his recent statements, and rest of the FOMC votes...

GBP GAINS across the board, completing the 7th rising week out of the last 8 weeks in a week when the Bank of Englands mixed messages regarding inflation became apparent to the public. Contrary to the rest of the G5, UKs inflation remains well above target, thereby fuelling expectations of a rate...

AUSSIE may be firming up against USD and JPY but is sharply lower against European currencies after softer than expected Aussie Q2 CPI (0.6% q/q vs exp 0.9% and 3.1% on y/y basis), which is boosting EURAUD as warned in prior IMT; Improved stochastics and appearance of double bottom is calling for...

The recent rally in the pound has ground to a shuddering halt on the back of a resurgent euro as well as concern about the state of the UK economy as we head into the third quarter of 2010. Recent hawkish comments from Monetary Policy Committee (MPC) Andrew Sentance have buoyed the pound in...

Mirror, mirror on the wall who's the ugliest of them all could have been the question directed at the pound and the Euro over the past 18 months, as they battled it out for the dubious distinction for the crown of least wanted currency in their own battle of the uglies. It now appears that...

GBP drops across the board despite the highest annual CPI since Nov 2008 (3.7%). The bulk of sterlings climb occurred ahead of the figures before Cable dropped a full cent to $1.4430. Traders are not only confident in the Bank of Englands repetitive calls that rising UK inflation will be...

GBP vs. EUR. While last weeks losses in EUR and GBP against the USD were largely straightforward, GBP losses against USD and JPY had exceeded those in EUR on Wed and Thur of last week due to deteriorating UK trade balance and a negative inflation report from the Bank of England. But as the rumours...

FROM STRESS TESTS TO RATING STRESS: Exactly One year after the major US banking institutions passed the stress tests on their debt paying ability with flying colors, they are no facing investigatory stress by the SEC over their handling of derivative sales (Goldman Sachs, Morgan Stanley & BoNY)...

The latest record high in gold at $1,244 is being especially driven by bond-purchasing measures of the ECB aimed at capping sovereign bond yields, which are an explicit form of quantitative easing (despite ECB's insistence to claim sterilization at a later time). 2009 was a clear manifestation of...

STERLING LOSES all of yesterdays gains after the Bank of Englands inflation report reinforced expectations that any positive sterling impact from deficit-reduction plans may not survive the growth implications of these measures. The BoE reiterated that inflation will drop below the 2% target in...

Sterling's Tuesday rally was the first daily gain after 7 days of losses, as financial markets applaud the combination of a market-friendly Conservatives victory and the LibDems contribution to achieving a majority government. Considering LibDems opposition to stringent spending cuts, this will...

DAVID CAMERON IS THE NEW PRIME MINISTER as Gordon Brown stepped down and the Conservative Party takes over to form a coalition with the Liberal Democrats with the aim of attaining majority. GBP RALLIED right before London markets closed when Labour confirmed the breakdown in its talks with...

Ashraf's Interviews (English and Arabic) on CNBC-Europe, BNN and CNBC Arabia. Ashraf on BNN discussing the euro, greek debt, IMF and Canadian dollar http://bit.ly/9A2K5U Ashraf on CNBC Europe discussing the British pound and Bank of England Decision http://bit.ly/bruo1Q Ashraf on CNBC...

Strong US figures in weekly jobless claims (-6K) & ISM (59.6 from 56.5) but -1.3% in construction spending. USD weakness intensifies as GBPUSD hits $1.5260. The break of the 2 month trend line was accompanied by positive oscillator pattern. $1.5370 is the next resistance facing the rebound, which...

GBP FALLS across the board on a combination of a bigger than expected slowdown in inflation and disappointing CBI figures. Feb CPI fell to 3% y/y from 3.5%, supporting the Bank of Englands expectations that the previous rise in inflation would only be temporary before returning to its 2.0% target....

Bank of England keeps makes no statement at its interest rate decision. Preliminary demand orders for Greeces 10-year bond offering reached 16 bln. It is not clear when the bond offering will actually take place. France says a Franco-German aid for Greece is NOT on the agenda, which fuels...

GBP tumbles across the board, further breaking away from its previous positive correlations with equities as the likelihood of further quantitative easing from the Bank of England haunts the currency. Readers of this website will recall our Dec 18 article http://bit.ly/5Meew3 laying out the...

This mornings revised Q4 GDP figures while on the face of it seemingly positive; dont really hide the fact that the economy is still vulnerable to further shocks in 2010. Once the detail is examined closely all the other figures were revised lower including the peak to trough decline of 6.2%...

The GBP damage remains the headline of the day (see previous IMT) amid rising expectations of further quantitative easing from the Bank of England. GBPUSD bottoms at the $1.5273--50% retracement of the rise from the Jan 2009 low to the Oct 2009 high. Any recovery is seen capped at $1.5345-50....

GBP drops across the board as Bank of England Governor King continues his perfect track record of dragging down the currency lower each time he speaks since August. Todays parliamentary testimony reiterated that the CPI increase was temporary before falling back below the 2% target in H2, and that...

While the Greek situation remains a fundamental force to maintain EUR shorts, the USD-side of the equation is supported by stabilizing of US data (Philly Fed, Indus production and retail sales). Yesterdays release of the FOMC minutes support expectations that more exit strategy will be detailed...

READERS OF THESE IMTs and FOLLOWERS of Twitter.com/alaidi were given the heads-up immediately after the Bank of England's inflation report, alerting them of the negative implications for GBP following the report and the release of Mervyn King's speech. Yesterday's IMT warned that all of King's...

EURUSD's downtrend is now confirmed after its 50-day MA has fallen below its 100-day MA, strengthening the bearish technical signal with an already deteriorating fundamental foundation. ...

Oil drops off its $82.15 high after EIA inventories data showed a build of a 1.3 mln barrels, 4 times greater than expected. While the daily oscillators in crude show signs of toppishness, the weekly trend remains positive and $84.85 is a vialble target for the week ($88 for month-end) remains a...