EUR 9.38 For Business Accounts Only

The Morning Track yelling

- The Morning Track - Yelling by Bob Savage
http://track.com/articles/the-morning-track-yelling/

Sometimes a good scream is all you need. The rise of scream rooms is something to pay attention to as the world continues to try and understand political anger. Egypt surely has its share given the massive devaluation, and the pain of IMF $12bn loan, along with real political turmoil. Then there is the Obama and Merkel meetings – with Greek debt and immigration versus Russia and the Ukraine on the scream docket. The Trump Abe meetings maybe a bit of the same screaming but Japan makes cars in the US leaving China on call for more ODI. Of course, today is also about FOMC Yellen, not Yelling. The role of central bankers in financial stability has returned to dominate with the overnight action by the BOJ to buy 3-5Y bonds at a fixed rate drove USD/JPY back higher and the Nikkei and the risk on mood returns. Expectations are high that Yellen moderates the recent rate and USD rally accordingly. Perhaps we should pay attention to both central bankers and politicians but the r
elationship of the two is not simple but like a family related. The root problem of politics is in the dialogue, where people only want to hear confirmation that their views rather than a diversity of thought, and central bankers seem to only want to see their actions in markets as positive for the real economy rather than any manipulation that distorts value and perversely increase instability. The RBA is being tested a bit on their being on” hold” – as jobs data today are less than they seem – and the AUD trades well below its 200-day m.a. accordingly. The push for the market is that USD gains are beginning to become part of the policy plan and the market scream. The USD rally is stalling a bit after 8 days higher – with 2003 targets in play – tracking the US 10Y failure at 2.30% with 2.12% now key support.