The bond market is the defining factor in judging what is going on in the market, and looking at bond yields, specifically the US 2s10s curve (the spread between the US 10 year treasury yield and the 2 year) can give us a shining light into how risks are priced and what is next for the real economy.
FX reserves aren't the most fun part of the market, but it is important to understand how they work and the different dynamics at play with different central bank contexts.
We explained what the Bank of England does, but how does the Bank of England actually affect exchange rates (FX) in reality?
Founded in 1694, the Bank of England is the United Kingdom's central bank and is responsible for setting the monetary policy of England, Scotland, Northern Ireland and Wales.
We've identified that in a rising interest rate environment, stocks on the whole are likely to decline as we're currently seeing with pretty much all indices...
We look at whether there is WORSE news, data and sentiment coming out to determine whether we remain or push above the 200DMA.
Over the last week or so, I've seen a TONNE of posts describing the FTX disaster (and that is what it is, a fraudulent, unmitigated and damning disaster) as a 'Lehman Moment'. I think there's a few reasons why people are referencing this, but it's wrong.
I know, I know... It's cool to hate on central banks and blame them for all the problems in an economy. And I do! I really do.
