Archived IMT (2009.05.28)
Weekly Jobless claims drop to 623K from 636K, while durables rose by a stronger than expected 1.9%. Both figures are good for the economy but add negativity to bonds, further spiking the rally in bond yields. We cannot imagine the Fed sticking with its current plan to purchase $300 bln in treasuries when their yields are exasperating the fragile jobless recovery and further endangering the value of their foreign holders. The only solution so far is for the FOMC to step up purchases, the implications of which will flash the green-light for dollar selling. The long term hedge strategy of shorting AUDNZD backing our long AUDUSD is in the green on both sides of the trade as AUDNZD extends damage to 400 pips off its 1.29 high after its triple top failure, while AUDUSD maintains its upward run. Note the AUDUSD remains in its 2-month channel, with support at 0.7560 and medium target at 0.8180.
Stimulus Snag, China Chugs Along
by Adam Button | Aug 3, 2020 14:46
ندوة مساء الثلاثاء مع أشرف العايدي
by Ashraf Laidi | Aug 3, 2020 12:50
Some August Seasonals
by Adam Button | Jul 31, 2020 15:48
From Fed to Q2 GDP
by Adam Button | Jul 30, 2020 12:50
What Does the Fed See?
by Adam Button | Jul 29, 2020 17:32