US growth upgraded

Today's Highlights

• Federal Reserve cuts bonds again

• US growth upgraded

FX Market Overview

I know banker-bashing is the sport-du-jour for governments and most certainly some bankers deserved all the bashing and more. But for the Argentinean government to be upset because hedge fund managers want to be repaid is a bit beyond the pale. Lending money to people who couldn't repay was the catalyst for the 2008 crash and the catalyst for all the bank bashing in the first place. In this instance, how are the Argentineans any different to a self-certificated, over-committed mortgagee in 2007? The irony seems lost on them.

Aside from the Argentine default story, the markets were also focussed on the US Federal reserve's interest rate and bond decisions which we got to hear yesterday evening. The Fed talked up the economy and cut their monthly bond buying budget by a further $10 billion to just $25 billion this month. Bond buying will be stopped altogether in October. These comments plus an improvement in the GDP growth data meant the US Dollar strengthened a little.

Sterling lacks impetus and that is because it lacks data. We did have data showing a slowdown in UK house price growth yesterday and that is perhaps to be expected when mortgages are becoming rarer than rap records that praise women for their intellect. We should probably expect more flat trading as we end July and begin August but month-ends can and do bring volatility due to traders squaring up their positions so, while the data may be lacking, we cannot assume the volati8lity will be similarly featureless.

The Euro has also been pretty listless but unemployment data and a smattering of inflation data may well shake it out of that stupor.

Away from the markets, under the heading of 'how tasteless can you get!' a clothes store in China is trying to attract shoppers by re-enacting the execution of Japanese soldiers with employees dressed in World War II uniforms. What the........? The Store Managers says it allows people to 'reminisce and buy clothes'. Therapist to aisle 3 please.

Quote

Labels are useless. I bought some wine. It said 'serve at room temperature' but it didn't say which room.
Anon