September 2008, Fed Balance sheet was 925, 725 and today its flat lining since July at 4.4 trillion. Its no wonder then the Democrats introduced “audit the Fed” and insertion of Consumer Protection agencies inside the agency. Democrats would love to get their hands on 4.4 trillion sitting idle and doing nothing. For Democrats and policy, its always a back door approach rather than head on to never reveal themselves to who and what they represent.
Since Fed introduction in 1913, its traditional for central banks to communicate and at times to coordinate economic policy. The genius however for the Fed is the independence rerpresented over the past 103 years and never to mingle, communicate or coordinate with the political system. Then again the only purpose of the Fed was add and subtract money supplies every week.
The first George Bush however openly invited Greenspan into the White House. This began the dark and dangerous path when the money system met the political system. Now 4.4 trillion sits. But meetings didn’t stop with Bush. Obummer met with Yellen many times. Since Obummer represents far Left ideologies, we can only guess the meeting purpose was economic policy coordination. Rather than Greenspan and Yellen resign and respective Democrat and Republican presidents admonished, not a word was reported. Speculation is Yellen is gone but then the question becomes how to relieve the Fed Board of Keynesians.
EUR/USD. Current range 1.0881 to 1.0667. The top dropped 31 pips since Wednesday while the bottom remained stasis at 1.0667. Masses of supports exist from 1.0667 to 1.0722. This area represents long points for NFP. A break of 1.0667 can only see EUR/USD to 1.0653 and outside the current day’s range. Its a market gift for EUR/USD longs at 1.0653 and 1.0667.
Above, solid resistance points exists at 1.0806, 1.0821, 1.0834 and 1.0849. To go higher, EUR/USD must break 1.0779 then begins next target at 1.0806. We’re looking for sell point today from 1.0796 to 1.0806.
Overall and over next days, EUR remains top heavy along the price curve and USD low. What this means for NFP is spikes higher won’t hold and we will see a good bounce from lower 1.0700’s.
Brian Twomey, Inside the Currency Market, btwomey.com