The markets are aware that too much free or nearly free money is going to cause trouble. Japan’s equity indices saw it first hand this week when their main stock market fell -7.9% during one session. All one has to do is look at our central banks – they seem to be single-mindedly focusing on CPI and jobs while totally disregarding the by-product of quantitative easing – asset inflation. Not making decisions any easier is when a central bank, like…

The market yesterday was a write-off in terms of price action, as a few sovereign nations managed to squeeze in a national holiday in parts of Europe and in Canada. This week’s US fundamental highlight will be delivered tomorrow – the FOMC Minutes from the May 1st meeting and helicopter Ben’s testimony on the Economic Outlook and Monetary Policy before the Joint Economic Committee, in Washington. On the whole, market price actions over the past few-days indicate that a few…

The recent outperformance of the US economy has the dollar appreciating against most currencies over the past week. Some of the current price levels have a percentage of the market beginning to price in expectations of a “secular USD bull market.” Are they getting ahead of themselves? The dollars job has been made simpler by the various central banks easing up on their monetary policy rules – just look at the RBA. Governor Stevens recent move has currently put the…