As written a gazillions times, interest rates move currency and all market prices and began in 1972 with the free float. Central banks made the rules as they instituted all market prices and trading rules since 1972. The ECB for example began 1999 with 14 interest rates then 7 and today, only 5.
The dead traded EUR/USD today is the result of the 5 rates. But all central banks complied except the FED as Fed rates are written in mathematical stone and can’t ever change the structure. They certainty can adjust but they won’t as central banks despise any volatility.
Very few on the planet understand markets and prices and my data reveals this concept. Much, much more is on the way.
How about EUR/USD Vs DXY Correlates from +95% to +97% for averages 1 to 10 years. This tells us all we need to know as all the revolving pieces will come together.
A few pieces of data and terrific revelations remains on site as many friends, readers and followers have been here for literally decades. But the wider audience doesn’t understand, nor care and wouldn’t use nor know how to apply the information.
What drive USD/JPY last week, 90 day = +0.00097,
180 day = +0.00050 and the big Kahuna = +0.00021042.
BOJ interest rates had to travel far and wide to achieve positive from deeply negative. BOJ interest rates still have a long way to travel higher.
If I view USD/JPY from the 10 year JGB for example, the result is 159.33 and another 100 pips. The 10 year JGB remains extremely low in relation to BOJ main interest rates.
On the agenda next is SPX Vs M1. This is a test but I already know the answer. Goldman Sucks or one of these high falutin banks offered an assessment to the level of money supply = SPX longs or shorts.
See this new and ridiculous concept. The bankers believe they are kings of the road and only they know what’s going on. So they come with these new concepts that may or may not work to draw attention to themselves. Its all about views but never about correct analysis or profitable trades. But when they speak, the unsuspected trading world takes all as gospel hook, line and sinker.
Does anyone ever test these bankers. Matter of fact yes, we do and we find them full of BS.
The weekly is on the way.
Brian Twomey
BRIAN TWOMEY ON TRADING 