December, 2012
Euro`s Recent Strength – Above Expectations
Euro/USD traded briefly above 1.3300 today. The recent strength of the Euro versus USD took me by surprise. I was looking for 1.3180 to 1.3200 as the top for Euro/USD for the rest of this year. I am attributing the latest rally to the thin markets in December given that the move was exaggerated. Resistance [...]
Emerging Fiscal Cliff Deal Could Push Economy into Recession
Washington has always made lots of things-bureaucratic regulations and hot air to name two-and it even prints money that instigates inflation. Now in the names of fairness and fiscal responsibility, President Obama and Speaker Boehner are cooking up a deal to avert the fiscal cliff that could easily thrust the economy into a deep recession.
Gold Continues Technical Correction – Pay Close Attention to the U.S. Treasuries
Gold is testing $1,671, the 38.2 percent Fibonacci support at the time of this article. Despite the low interest rate policies by all the major Central Banks around the world, the commodity failed to rally. The technical triple top scenario is playing out nicely so far, with the first target reached. I am still hoping [...]
Gun Rights, Safer Children and the Culture Wars
As a parent and educator, I want children safer from gun violence. However, we should seek measures that work-not those that needlessly abridge personal liberties without producing significant results. Whatever we accomplish should not be at the expense of raising children to be secure and capable adults. Skepticism about tighter gun controls is understandable. Connecticut [...]
Euro Higher Versus USD
Euro/USD shot up last Friday on continuous optimism on the Euro zone ability to fix their debt problems. The currencies pair is shy from 1.3200 with short term support at 1.3140 at the time of this article. I am not convince the Euro zone problem is behind us, it is just a shift in attention [...]
Slower Growth, Stubborn Unemployment in 2013
Recent retail sales data indicate economic growth is shifting down a gear from the 2.7 percent pace set during the third quarter. The December Bloomberg poll consensus projects growth at 1.4 and 1.6 percent in the fourth and first quarters-my submissions were 1.7 and 1.4 percent, respectively.
Fed’s Easy Money Policies Will End in Tears
Bar the door Nelly-the Fed has abandoned all restraint and will now print money to finance the federal deficit. To support the weak recovery, the Fed continues to keep short interest rates near zero, purchase mortgage-backed securities and push down long interest rates. To accomplish the latter, since September 2011, the Fed has sold Treasurys [...]
No Surprise on FOMC – Dangerous Path by the Fed
The last FOMC meeting for 2012 was released today with the Fed continuing on the path of easy monetary policy. The Federal Reserve will be conducting a $45 billion monthly purchase of long-term U.S. treasuries. We can debate the effectiveness of the continuation of pumping steroids into the economy but it is clear that the [...]
Gold`s Technical Correction Remains Intact – Euro/USD – No Change
Despite last week’s ECB indication of lower interest rates, gold failed to fully reverse the downside correction. Gold did bounce from the $1,680 support because of the ECB’s news, but it is unable to move above the 50 percent Fibonacci retracement at $1,720. At the time of this article, it is trading around $1,700. Further [...]
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