Propping Up the Currency and Bond Markets
Headlines like these are what make the markets move. It all depends on how long this will last. How long will the governments minipulate the bond markets and the currency markets? Who knows. But there are some pretty big moves going on in forex markets and the world government bond markets. If Japan and England increase their manipulative interactions then we will absolutely see a changing of the current trends in the world markets. This will affect equity markets as well. Im not sure if this will last very long. If there are any experts in forex or treasury bonds then please enlighten me with any insight. There were some big initial reactions in the markets off of these headlines. So any insight will help.
02:15 Japanese Chief Cabinet Secretary Boichi Matano: appropriate measures will be taken to deal with excessive foreign exchange fluctuations.
02:13 Japanese Chief Cabinet Secretary Hiroichi Matano: will closely monitor foreign exchange movements with a high sense of urgency.
01:16 The Bank of England: each index-linked bond purchase will be as large as 5 billion pounds.
01:15 The Bank of England: the selling price of index-linked Treasurys will not be allocated if the real yield is below the level observed at Monday's close. At the end of index-linked bond purchases, most bids above the market median yield are likely to be accepted. The minimum yield will be set for temporary purchases of index-linked government bonds.
01:09 The Bank of England: intends to buy index-linked gilts with a maturity of three years or more.
01:05 The Bank of England: it will be ready to buy up to £10 billion of government bonds a day.
$USD(USDindex.FX$ initially started dropping with treasury yields in the US and in England when the news started releasing.
You can see in the picture below how the major forex futures tickers reacted. The major overseas currencies are gaining strength off of this news. This will weaken the US dollar which would theoretically be good for equities.
Even $E-mini S&P 500 Futures(JUN4)(ESmain.US$ and other equity futures are getting some major whipsaw price action while the market is digesting this news dissemination.
Remember that all of these market moves are going against the current bear market trend that the markets have been in this whole year. We don't want to fight the trend but we do want to be prepared and when and why the trend could possibly be changing.m Who knows how long this will last?
$SPDR Dow Jones Industrial Average Trust(DIA.US$ $Invesco QQQ Trust(QQQ.US$ $SPDR S&P 500 ETF(SPY.US$ $iShares Russell 2000 ETF(IWM.US$ $VIX Index Futures(JUN4)(VXmain.US$ $Gold Futures(AUG4)(GCmain.US$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf(UUP.US$ $SPDR Gold ETF(GLD.US$ $iShares Silver Trust(SLV.US$ $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US$ $Ishares Iboxx $ Investment Grade Corporate Bond Etf(LQD.US$ $iShares 20+ Year Treasury Bond ETF(TLT.US$ $Crude Oil Futures(JUL4)(CLmain.US$
$TENCENT(00700.HK$ $SSE Composite Index(000001.SH$ $CSI 300 Index(000300.SH$ $CSI 300 Index(000300.SH$ $FTSE Singapore Straits Time Index(.STI.SG$ $NIO-SW(09866.HK$ $NIO Inc. USD OV(NIO.SG$ $NIO Inc(NIO.US$ $BILIBILI-W(09626.HK$ $Bilibili(BILI.US$ $Baidu(BIDU.US$ $BIDU-SW(09888.HK$ $XPeng(XPEV.US$ $Li Auto(LI.US$ $BYD COMPANY(01211.HK$ $BYD Company Limited(002594.SZ$ $S&P/ASX 200(.XJO.AU$ $FTSE Singapore Straits Time Index(.STI.SG$
$TENCENT(00700.HK$ $SSE Composite Index(000001.SH$ $CSI 300 Index(000300.SH$ $CSI 300 Index(000300.SH$ $FTSE Singapore Straits Time Index(.STI.SG$ $NIO-SW(09866.HK$ $NIO Inc. USD OV(NIO.SG$ $NIO Inc(NIO.US$ $BILIBILI-W(09626.HK$ $Bilibili(BILI.US$ $Baidu(BIDU.US$ $BIDU-SW(09888.HK$ $XPeng(XPEV.US$ $Li Auto(LI.US$ $BYD COMPANY(01211.HK$ $BYD Company Limited(002594.SZ$ $S&P/ASX 200(.XJO.AU$ $FTSE Singapore Straits Time Index(.STI.SG$
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Moomoobo : Implying a rebound of equity due to dollar drops is coming?
SpyderCallOP Moomoobo: possibly for the short term. The fed is going to release meeting minutes Wednesday and people are expecting that to help the dollar. so this could just be a pump fake. but definitely keep an eye on the monetary and fiscal policies world wide
SpyderCallOP Moomoobo: I would not go long in the markets just yet
Moomoobo SpyderCallOP: Not Until This week is over ? Many key events this week
Moomoobo : Can’t Think of reasons for market to rally From the cpi and fomc
. Bearish Sentiment through Out
SpyderCallOP Moomoobo: agreed
SpyderCallOP Moomoobo: SPY is really trying to go green today. interesting
bwjx SpyderCallOP: $Dow Jones Industrial Average (.DJI.US)$ closed green today. probably very closed to the covid highs. I am thinking what is the best way the market is trying to wreck the bulls and bears. Maybe a rally on cpi to flush the bear and trap the bulls then the final push down to covid highs for SPY and NQ
bwjx : But they have to do it pretty soon cos option expiry coming next Friday.
SpyderCallOP bwjx: Those greedy market makers do it like that every time. especially if there is not enough liquidity to pay out those gains. they must pump and dump to get some liquidity
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