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U.K.’s Central Banker Struggles With Inflation, a Financial Crisis and His Own Government Bank of England Gov. Andrew Bailey intervened in bond markets but must also tamp down inflation that could reach 11% this year; government backtracks on tax plan.

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Little of note other than a team sheet of central bank speakers and some US housing data to take note of especially after yesterday’s unexpected big topside beat for new home sales which saw its second largest increase on record.

xxpqxx999 Updated 

Little of note other than a team sheet of central bank speakers and some US housing data to take note of especially after yesterday’s unexpected big topside beat for new home sales which saw its second largest increase on record.

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I do believe that we are now well into a political transition away from capital to favour labour. The last time we saw such a transition was after World War II, and the trade that seemed to work best was long gold/short bonds.

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in the previous post I made a little mistake with getting into positions, see my profile. entry into positions is a price 0.63641 with a target at 0.69020 - strong PMIs with upside surprises - sentiment is bearish especially vs. NZD but sentiment in AUDUSD is extremely bullish . - risk reversals are diverging to the upside

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Europe: Italian elections coming up, risk of a Euro-sceptic right-wing PM An unexpected resolution of the Ukraine war seems very unlikely, but it could escalate very quickly especially given the mobilization and referendums UK: The rabbit is out of the hat with Truss and Sunak; coordination between the government and the BOE seems non-existent, I’ve read calls...

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in the previous post I made a little mistake with getting into positions, see my profile. entry into positions is a price 0.64143 with a target at 0.71244. - strong PMIs with upside surprises - sentiment is bearish especially vs. NZD but sentiment in AUDUSD is extremely bullish. - risk reversals are diverging to the upside

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For almost three decades now, investors have looked at the economic headwinds faced by the Bank of Japan, at its QE and QQE policies, and at the country’s awful demographics and realised that the obvious outcome is a massive sell-off in Japanese government bonds (JGBs) and a dramatically weaker yen. So ‘obvious’ has this trade been that, at some point, just about...

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The central bank is watching developments in financial markets and "will make a full assessment at its next scheduled meeting of the impact on demand and inflation from the Government's announcements, and the fall in sterling, and act accordingly." The announcement falls short of what some economists and market-watchers began calling for in recent days: an...

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Hi! Even though the geopolitical situation in my opinion looks like this: Europe: The elections in Italy are approaching, the risk of a Eurosceptic right-wing prime minister An unexpected solution to the war in Ukraine seems very unlikely, but it could escalate very quickly, especially taking into account mobilization and referenda. According to my detailed...

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Guidance: the policy rate will need to rise further, the bank will be assessing how much higher interest rates will need to go to return inflation to target Headline inflation eased because of lower gasoline prices but price pressures are broadening, especially in services Growth was a bit weaker than expected at 3.3% in Q2, but domestic demand is very strong. The...

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Softened the commitment to bringing inflation back down a bit from: “high priority" to: “board is committed” The economy has now “deteriorated” instead of “outlook downgraded” Inflation is now expected to increase further over the months ahead Wage growth has picked up and is increasing briskly in some parts of the economy Guidance changed from “expects further...

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More hikes to follow, stable prices are much more important for medium- and long-term growth, looks like the decline in economic output will not be severe.

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Thursday's rate hike was a clear sign, further clear steps must follow if the inflation picture stays the same. Inflation is likely to be at a far-too-high level of over 6%, may peak at over 10% in December, likely to weaken somewhat during 2023.

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The pound is under pressure. A foreign central bank is fighting inflation and has raised interest rates, boosting its currency. Sterling, along with others, is losing out.

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The GBP/USD pair gained some positive traction on Wednesday and stalled the previous day's post-US CPI sharp retracement slide from a two-week high.

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The rate hike is considered a “major step” that “frontloads” the transition to interest rate levels consistent with bringing inflation back down to 2% target The Governing Council expects to raise interest rates further, remains data-dependent and follows a meeting-by-meeting approach

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Play it like I showed and you'll make a lot of money by the end of week, good luck.