Bear Speculation

Short-Term Trading Idea FX USD/SEK – Bear Speculation: Return To Trend Line Trading opportunities for currency pair: after the Brexit, the USD/SEK switched into a correctional phase. I reckon that it will continue until August and the rate will not surpass the 8.7451 maximum. On the road to the trend line (8.1097) the sellers meet two interim levels: 8.3191 and 8.2186. Any fall will be cancelled by a close of the daily candle above 8.5510. Above here we can place a protective stop. Background In March I thought the dollar would…

Inflation and investment

What is the relationship between inflation and investment? Conventional wisdom says that businesses adjust their investment spending according to changes to the cost of capital. Intuitively, that makes sense: more projects become worthwhile as funding costs go down, while few make the cut when capital is expensive. (In reality, it turns out that interest rates, spreads, and volatility are all irrelevant for capex decisions, but let’s put that aside for now.) If central bankers want to boost investment to encourage economic activity, conventional theory suggests they should lower interest rates. However,…

Post-Brexit crisis

Post-Brexit crisis, what crisis? The FTSE 100 is roaring ahead It has taken just a week since the shock EU referendum vote for the best FTSE 100 performance in years. What’s going on? Find out here … The FTSE 100 has recorded its best weekly performance since December 2011 After an initial slump in the first two trading days following the Brexit vote, the index of Britain’s top 100 companies regained all its losses by Wednesday and is now at its best level since last August. The remarkable rebound has surprised analysts,…