Just remember, when the fed hikes the S&P 500 (SPX, quote) will go up! If we are in a place where the fed begins to hike rates, albeit this is different formally than removing stimulus than the economy is on better footing, commodities are rallying and they are just as worried about inflation as they are growth.
Emerging Market Update
Official economic data from the U.K. indicated Consumer Price Inflation Index remained unchanged at rate of 2.8% for the month of March, in line with economist estimates.
I want to provide a follow up and update readers on the Japanese yen. Earlier in the week we took a look at effects the Bank of Japan’s aggressive bond action had on the USD/JPY (yen). In that Monday post we explored the sharp move higher in the session into the BOJ statement to through Monday afternoon.
As we begin a new week and the start of earnings seasons the U.S. dollar jumped to nearly to 4 year highs against the Japanese yen as Japan’s central bank began its new monetary stimulus program.
The rich get richer and the poor get poorer. I’m not sure not sure you can expect this to change anytime soon. Fund flows into EM last week broke a three week downtrend with new inflows.
The technicals are in control of gold futures today as price hits a 5 week low on technical selling after the shiny metal crossed below the 21 and 30 day moving averages.