“Just allow it…just admit it. It doesn’t matter where the inflation comes from. Just let it stay…”

SLASHING the Bank of England’s base interest rate to an historic low of 0.5% was supposed to “rebalance” the economy…tipping it away from galloping consumption towards an export-led recovery.

But all that the Pound’s slump since rates began sinking in March 2008 has done so far, however, is gift a 50% gain to UK gold owners.

How Fast Will Chinese Officials Clamp Down?

It appears that Chinese inflation is on the rise again, indicating that the country is seeing strong economic growth. Again. China's leaders are wary of seeing such rapid growth, and are expected to clamp down, possibly even revaluing the yuan against the U.S. dollar.

Governor Bollard from the RBNZ stated last night that they do not anticipate ‘hiking interest rates until mid-year’. With the SNB this morning, the market will be focusing on their policy on FX intervention in EUR/CHF. Economic indications and inflation forecasts ‘did not require’ the sort of intervention that surprised and upset the markets last year. There is no doubt it, Hillenbrand ‘does not want to see a strong CHF’.

I have a long position here that I opened not following my rules.  When I do it.....
GLD is now re-testing the upper trendline after the breakout to the upside.
Force Index is negative.  MACD printed a negative divergence at the top.
Not nice.

Slopeof hope wrote

One of the pitfalls of forex blogging (or all financial reporting for that matter) is that it’s inherently after-the fact. In other words, any information about the past – while relevant – is inherently useless, since it has theoretically already been priced into the asset (or currency in this case). Before I begin my post on the Pound’s recent decline and the factors that wrought it, then, I wanted to offer the caveat that in analyzing past events, we must simultaneously look to the future.