Three in a row II

I guess FOMC would like to see a good close to the week considering there "all in" stance from the FOMC announcement on Tuesday. Since then we have had a number of very interesting events with a few of those mentioned below:

1. Extremely turbulent currency markets with the EUR/USD hitting 200dma before selling down below 1.40 now(From a Copenhagen perspective it's just amazing to see the weakness of the Norwegian, Swedish and UK currencies)


2. Disappointing equities markets, but will the market deliver the Christmas rally today with a move over 920 or will it fail in line with the nature of 2008 in general


3. Gold moved up to the resistance at 880-890 and have since then sold off to 830 level


4. Oil continue the move down illustrating the underlying lack of belief on global economic recovery


5. 10 yr and 20 yr US treasuries making many people frustrated with the move to close to 2% and 2.5% respectively


6. Continued under performance in EU fixed income (30 yr swaps 120bp over US as an example)


7. BNP Paribas and Deutsche ban k dragging all other European banks since Wednesday


8. Nice performance on mortgages and investment grade


9. Some improvement in CDS and high yield bonds

And we are all left with the question if all the intervention will have the hoped for effect or if the reason for all the measures will be the overriding market driver. I lover this old video about inflation found on Cafe Hayek.

And finally hat off to the full moon effect when nothing else works.