Currency Wars Now Heating Up As CRB Falls To A Level Not Seen Since 2009

Friday, January 23, 2015
By Paul Martin

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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