The Hong Kong Monetary Authority kept its base rate steady at 0.50% following the decision of the US Federal Reserve to leave the...
HKMA Follows FOMC in Keeping Rate on Hold at 0.50%
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Risk aversion dominates the morning session
EUR/JPY has fallen almost 100 pips from it’s NY closing level as events in Iran and North Korea remind the market that we are really only one big event away from a significant hiccup in the worldwide economic recovery. Risk aversion has been the name of the game, with both the JPY and CHF...
Czech National Bank Maintains Rate at 0.75%
The Ceska Narodni Banka held the two-week repurchase rate at 0.75% as expected, and kept the discount rate unchanged at 0.25% and...
Pairs trading and correlations
I approach pairs trading with the correlations tool-box and basic algebra. Let's consider two time series, a(t) and b(t). It will be understood that these are taken on a fixed time scale (second, minute, hour, and the like). Most explanations of pair trading fail to communicate the importance of...
Stark: Ignore the negative inflation reports!
Like the good Bundesbanker he was before he ascended to the ECB, Jurgen Stark says that the negative inflation numbers that will be released this summer are of no concern to the ECB. Inflation is the concern and accommodation will be quickly reversed when the economic recovery starts. Following on...
Interesting look at economic sausage-making
One interesting nugget in this behind-the-scenes view of economic policy-making in the Obama Administration is the view that Ben Bernanke just might be reappointed when his term is up in...