Archive for May, 2008
Just Be Yourself
Success in all aspects of life seem to follow those who do not try to act like someone else, but rather have a foundation of knowing who they are and act in that manner. Many traders seem to want to act like other traders who have recently had a string of successes instead of being committed to their own strategy and trading style. To be the best we can and have consistent success in trading takes a devotion and passion to learning our strengths and weaknesses and applying our skills to match
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Slovakia: NBS keeps interest rates unchanged as expected
As expected the Slovak central bank today kept its key policy rate unchanged at 4.25%. It is now (nearly 100%) clear that Slovakia will join the euro area from January 2009, which means that the Slovak central bank (NBS) will have to bring interest rates down to the level of the ECB at 4.00%. The reason why the NBS did not cut rates today is probably that it is waiting for the final decision from EUÂ’s economics and finance ministers confirming the EU commissionÂ’s recommendation to invite
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Slovakia: NBS keeps rates unchanged
As expected the Slovak central bank today kept its key policy rate unchanged at 4.25%. It is now (nearly 100%) clear that Slovakia will join the euro area from January 2009, which means that the Slovak central bank (NBS) will have to bring interest rates down to the level of the ECB at 4.00%. The reason why the NBS did not cut rates today is probably that it is waiting for the final decision from EUÂ’s economics and finance ministers confirming the EU commissionÂ’s recommendation to invite
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Fix Your Eyes Forward and Not In The Past
Some of the greatest successes have been accomplished not long after a person had reached the end of their rope. They had been beat down so much they had their backs to the wall and were ready to quit. but they did not. Trading can easily cause us to get to this point unless we decide that when we hit the most difficult times in our trading is the exact time when we can emerge with more power and passion than every before. Give yourself a push and decide what you truly want to accomplish and
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Tomorrow is Too Late
Trading has many ups and downs and can easily cause us to feel defeated. However, defeat can only be disastrous if we classify it as disastrous. Losses, defeats, failures, etc. have been a part of history for every person who has reached high levels of success. The difference with the successful people is that they analyze the situation immediately. Those that tend to fade away are those that wait until tomorrow or maybe never to review and discover why the results were not what they expected.
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Hungary: MNB maintains hawkish stance
The Hungarian central bank today hiked its key policy rate by another 25bp to 8.50%. This was both the consensus expectation and our own. If anybody deserves a prize for being a cautious central banker in CEE it must be the Hungarian central bank governor Andras Simor. Despite continued very weak domestic demand and a currency that has held up remarkably well during the global credit crisis, the MNB governor and his colleagues have maintained a very cautious or even outright hawkish
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Russia: The central bank raises reserve requirements further
This morning the Russian central bank (CBR) has announced today that from July 1 it will raise its compulsory reserve requirements for commercial banks to 5.0% from 4.5% for retail deposits in roubles, to 7.0% from 5.5% for banks' liabilities to non-resident banks and to 5.5% from 5.0% for other bank liabilities. The CBR cited worries over inflation and excessive credit growth as the main reasons for tightening reserve requirements.
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Minutes of FOMC Meeting, April 30th 2008
• The minutes showed that expectations for 2008 had deteriorated since the previous meeting. Participants lowered their forecast for GDP growth in 2008 while revising up sharply their outlook for inflation • FOMC members expected a recovery in 2009, but admitted that downside risks to the outlook were significant. Risks to growth were linked to the enduring strains in the credit market, while risks to inflation were mainly associated with changing expectations • As long as their new base
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After the March Fed’s meeting – just enough
Yesterday the Fed decided to cut all interest rates by 75 bp. After this decision the main rate is at 2,25%, whooping 3 percentage points less then 8 months ago. What’s more, the discount rate (at which commercial banks may borrow directly from Fed) is at a mere 2,5% compared with 6,25% in August 2007. Even though 75 bp is definitely not a moderate adjustment, the markets were somewhat disappointed. The whole havoc around Bear Stearn’s problems and an eventual takeover by its competitor (JP
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Turkey: Did TCMB finally turn hawkish?
The Turkish central bank (TCMB) has announced that it has raised its key policy rate by 50bp to 15.75% - in line with the consensus expectation, but less than our expectation of 100bp. The TCMB has finally realised the need for a tighter monetary stance following its aggressive easing during H2 07, where it lowered its key rate from 17.50% to 15.25% amid the peak of the global credit crisis.
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