LIBOR Awakens

After a wild 2008-09, one month Dollar LIBOR (London Interbank Offered Rate) has settled in for a long nap under 0.25% for the last six months. Recently it has awakened from its slumber, and a little white candle formed on the charts. Too early to read much into it, but there could be a signal here. Signal of what? The obvious answer would be incipient inflation/interest rate increases. The right answer may be volatility. Let’s keep an eye on the VIX, which has been similarly drowsy.


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