Currency Wars Now Heating Up As CRB Falls To A Level Not Seen Since 2009
KingWorldNews.com
January 23, 2015
With the U.S. dollar surging even higher after yesterday’s move by the ECB to inject $1.3 trillion into Europe’s bank and bond markets, below is a key piece that warns currency wars are now heating up as the CRB falls to a level not seen since 2009.
By Art Cashin Director of Floor Operations at UBS
January 23 (King World News) – In mid-morning, after the Danish central bank surprised with a rate cut, I sent the following note to some friends:
Denmark cuts again. On the face of it, obviously a response to new, and assumed further, weakness of the Euro. Nevertheless, it conveys an aura of central banks’ jitteriness – especially on the back of the surprise Bank of Canada move. Currency wars may be heating up.
Once Europe closes, U.S. equities may shift focus back to crude market. A drop in WTI below $46.50 may catch attention.
With six central banks having changed rates in the last week and a half, it appeared evident there was a pronounced edginess apparent in the world of central banking.
The concern about the accelerated activity among central banks had to do with transition. Currency wars begin rather cerebrally, somewhat like a chess game. As the wars intensify and pain and fear begin to spread, activity and intensity begin to accelerate. That’s why traders put their antennae on alert.
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