Bloomberg (July 7)
Wall Street currency traders are increasingly “flying blind” as once reliable models misfire and new forces, “like the broad shift of money out of the US and foreign investors buying dollar hedges,” drive markets. Since Trump’s second term began, currency experts “have been blindsided by the dollar’s selloff and are now questioning whether the past few months will go down as a chaotic but short-lived adjustment or the start of a harder-to-navigate era.”
Tags: Adjustment, Blindsided, Chaotic, Currency traders, Dollar hedges, Flying blind, Foreign investors, Markets, Misfire, Reliable models, Selloff, Trump, U.S., Wall Street
Investment Week (November)
The recent 0.25% increase “in interest rates announced by the Bank of England leaves us with no more clarity about the direction of monetary policy than we had before the micro-adjustment. Indeed, the increase raises rather more questions than it resolves.” The cut may simply reverse “the rather ill-judged post referendum cut,” Or it could be one off “nod to those worried about inflation becoming more embedded.” Or it could be “the start of a sequence that will see regular increases in rates along a path towards normalisation.”
Tags: Adjustment, BOE, Clarity, Direction, Inflation, Interest rates, Monetary policy, Normalisation, Referendum
Financial Times (March 30)
“The real eurozone problems are hidden under the bonnet…. The most important adjustment that needs to take place is a convergence of prices and labour costs.”
Tags: Adjustment, Convergence, eurozone, Hidden, Labour costs, Prices, Problems
