2019.40 - that is the line in the sand for today - and for now, the S&P 500 cash index is trading back below this key technical support level...
The miracle bounce to the 200-day moving-average...
And today, for now, we have lost that level...
The battle begins.
Submitted by David Yager via OilPrice.com,
As we warned last week, the inflation genie is out of the bottle…
We now have confirmation that the Fed is aware of this…
Two key Federal Reserve officials said Monday they expect inflation to get closer to the central bank's target…
Their comments came after data late last month that showed core inflation rose 1.7 percent in the 12 months ended in January.
Source: CNBC
Indeed, even the Fed’s Vice Chair Stanley Fischer has warned inflation is coming… and the Fed wants it!
Facing a severe shortage of dollars and dwindling (if momentarily stable) FX reserves, Egypt moved to devalue the pound by around 13% on Monday in a move the central bank says will help attain “exchange-rate levels that reflect the strength and real value of the local currency in a short period of time.”
The central bank sold $198.1 million at auction at 8.85 versus 7.73 previously. Here's a look at the EGP versus Egypt CDS which had recently diverged quite markedly relative to recent history:
Just as we saw with the stock market following Draghi's December disappointment dead-cat-bounce, WTI Crude has collapsed back topost-Draghi lows, erasing all the WTF bounce from Friday. The driver - aside from the fact that there was no driver of the ramp - appears to be comments from Emirates Bank on the resilience of US shale (and the surprising lack of production drops for now).