This week, it was the European Central Bank’s turn to raise rates, this time by 75 basis points to yield a massive 1.5% for deposits. Just kidding about the massive part. The ECB has a lot of rate-increasing to do to catch up with the Fed, but the currency moves this week seemed to hint that Big Money was at least somewhat mollified by the ECB’s latest, belated moves.
Wolf Richter has a breakdown as to the rest of what they did – more or less encouraging the banks to repay the two trillion in zero-interest loans the ECB gave them because, Pandemic. I have to say, Wolf’s charts are pretty cool – especially the EU Consumer Price Index, and the ECB’s balance sheet; most of the balance sheet will remain (Source – WolfStreet).
The buck fell this week, losing 1.37 [-1.23%] to 110.61. That move pulled the buck below the 50 Moving Average, which is a bearish signal. A trend change, or just a reaction drop during an uptrend? The losses happened on Tuesday and Wednesday. I’m guessing the drop had a little something to do with the ECB. What will happen after the Fed meeting next Wednesday? The reverse, perhaps? Powell’s press conference (2:30 PM Eastern) should give us a look at what’s next.
Crude rose 2.85 [+3.35%] to 87.90; crude is now back above its 50 MA. Why do we care about the 50? It is one of these “medium term trend indicators”, and a close above or below hints at a potential trend change. In this case, maybe a bullish one. Although it did the same thing three weeks ago…reading the price tea leaves, it does look like a bullish trend change. And the candle print also looks bullish. And the open interest remains quite low, which is also bullish – the banksters are well-positioned for a rally. And of course there’s the election coming up in maybe 10 days. The WEF/Biden-Handlers are very enthusiastic to see a higher oil price – but only post-election. “Climate Change”, of course.
The weekly Biden-Handler oil-pillaging campaign remained at a relatively low level (merely $300 million this week) two weeks before the midterms. Have the Biden-Handlers been shamed into reducing it? They don’t invite me to the meetings, so I have no idea.
by mysterymet 
