Forex Jargon

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• Psy – New “Gentleman” video released
• Berlusconi: I’ll stand again if a snap election is called
• ITEM Club: U.K. Faces ‘Sluggish’ Growth on Weak Europe
• Fed’s Lockhart: Fed is not monetizing government debt
• More FX jargon!
• Fed’s Evans, Kocherlakota: Fed should not obsess over inflation outlook given recent success curbing it
• Bloomberg article: Schaeuble Favors ‘Liability Hierachy’ for European Bank Bailouts

Psy – New “Gentleman” video released Posted: 13 Apr 2013 11:00 PM PDT Yeah, I know, its not FX. But it is the weekend. Eamonn’s review: The song is not as good as Gangnam Style, but what could be? ‘Gentleman’ is a great, catchy dance song. Watch the video here: ‘Gentleman‘

Berlusconi: I’ll stand again if a snap election is called Posted: 13 Apr 2013 10:53 PM PDT Italian politics. Sheesh. Read it here, if you’re interested: Reuters

ITEM Club: U.K. Faces ‘Sluggish’ Growth on Weak Europe Posted: 13 Apr 2013 10:49 PM PDT The UK’s ITEM (Independent Treasury Economic Model) club if to forecast lower growth than previously: The GDP forecast is for 0.6% growth  (January’s forecast was for 0.9%) Rebalancing of the UK economy ‘on hold’ Reliance on consumer spending Growth is likely ‘sluggish, at best’ Signs of future stimulus being planned Via Reuters

Fed’s Lockhart: Fed is not monetizing government debt Posted: 13 Apr 2013 10:28 PM PDT Atlanta Fed president Lockhart spoke Saturday on a  panel in Iowa on “Fiscal Reform, monetization, or default: How will the US solve the problem of its national debt”. He objects to the point of view that the Fed is monetizing the debt Referring to the title of the conference he said the fiscal reform “is the only real option in the title” It is incorrect to say the Fed is persisting with low interest rates to reduce the government's financing costs and encourage deficit spending, but rather rates are low until the economy improves "I have been supportive of accommodative policies and I continue to do so," Lockhart is generally perceived to be a centrist on monetary policy. More details (the article is worth reading in its entirety): Bloomberg

More FX jargon! Posted: 13 Apr 2013 10:02 PM PDT We are in the process of beefing up the Forex Jargon page with, ummmm, well, more jargon.  We’ve got a whole heap of new definitions ready to add – but if there is a word or phrase that any ForexLive participant would like defined or explained, please let us know in the comments here and we’ll get it added.

Fed’s Evans, Kocherlakota: Fed should not obsess over inflation outlook given recent success curbing it Posted: 13 Apr 2013 04:31 PM PDT Evans and Kocherlakota were panelists in a discussion at the Boston Fed’s economic conference on Saturday. Say the Fed needs to stay focused on accommodation to help fight unemployment Inflation pressures look low On inflation: “We have to monitor it, we have to be mindful, but I don’t think we should obsess over it,” he said, adding the Fed’s inflation performance has been “really good.” Evans and Kocherlakota are both doves. More details: Bloomberg Reuters

Bloomberg article: Schaeuble Favors ‘Liability Hierachy’ for European Bank Bailouts Posted: 13 Apr 2013 04:16 PM PDT Wolfgang Schaeuble, German finance minster, said in Dublin on Saturday he wants to see a "liability hierarchy" where owners and creditors of banks are first in line to bail them out before governments bolster equity and the European Stability Mechanism provides international aid. Still insists Cyprus was a unique situation Says it needs to be possible to liquidate troubled banks without endangering the stability of the financial system More details: Bloomberg