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British Pound vs. US Dollar
The British Pound is back at fresh four-year highs against the US dollar, which could be a negative development as far as the Bank of England (BoE) is concerned. GDP is trending higher (very slowly) but CPI growth is slowing rapidly, possibly signaling that the deflationary environment in the Eurozone is spilling over the English Channel. Less than three years ago, CPI was puzzling the BoE as it... -
CRB Commodity Index
After three years of negative sentiment and capital outflows, commodities appear to be coming back. The Financial Times published an article yesterday highlighting the turning sentiment in commodities after $50bn of net redemptions in 2013. Some analysts are speculating that the renewed interest in commodities is related to their uncorrelated returns, making them popular as a portfolio diversifier. However, more than anything commodities are becoming attractive because prices...
