Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Friday, October 05, 2012
Will Gold Help Iran’s Rial Collapsing Currency Financial Plight? / Currencies / Fiat Currency
Since the beginning of 2012, the Iranian rial has been devalued against the US dollar by over 80%. However, this last week has seen the devaluation gain pace dramatically with the currency falling by 18% on Monday and 9% on Tuesday.
This is causing a crisis in the country where prices have reportedly gone up by between 40 and 70%. The Guardian quotes a housewife in Tehran, “The current crisis evokes the bad old days of the Iran-Iraq war…it’s like the war years, the price today is different from the price yesterday.” Shops are said to be closed or at least trying to refrain from trade as the rial has been turned into one of the cheapest currencies in the world.
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Thursday, October 04, 2012
Iran Hyperinflation - Déjà Vu When Money Dies / Currencies / Fiat Currency
An important element of national security is the soundness of our currency. Before a currency goes into freefall, its value can be chipped away while a distracted population fails to notice that the currency buys cheaper quality clothing and less food in a package at a grocery store. This can drag on for decades, and sometimes the currency doesn't go into freefall, it simply slowly erodes in value. That's the current situation with the U.S. dollar.
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Wednesday, October 03, 2012
The Fed Plays All Its Cards, Road Map for Currency Debasement / Currencies / US Dollar
There never really could be much doubt that the current experiment in competitive global currency debasement would end in anything less than a total war. There was always a chance that one or more of the principal players would snap out of it, change course and save their citizenry from a never ending cycle of devaluation. But developments since September 13, when the U.S. Federal Reserve finally laid all its cards on the table and went "all in" on permanent quantitative easing, indicate that the brainwashing is widely established and will be difficult to break. The vast majority of the world's leading central bankers seem content to walk in lock step down the path of money creation as a means to economic salvation. Never mind that the path will prevent real growth and may ultimately lead off a cliff. The herd is moving. And if it can't be turned, the only thing that one can do is attempt to get out of its way.
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Thursday, September 27, 2012
The Monetary Times They Are a Changin’, Time for Gold Stock Mania? / Currencies / Fiat Currency
Bob Dylan’s iconic, “The Times They Are A Changin’” starts off with the following lyrics:
Read full article... Read full article...Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone
Thursday, September 27, 2012
Always A Euro Currency Bear / Currencies / Forex Trading
John Taylor, founder and CEO of the world's largest currency hedge fund FX Concepts, spoke with Bloomberg Television's Erik Schatzker and Stephanie Ruhle on "Market Makers" today and said that he'll "probably always be a bear on the euro" and that "it is hard to look at the European situation and see a cloudy sky become clear."
Taylor also said that "they equity market is not showing any legs...I do not know where we will wind up. Maybe the people will come out of the wall and as you say, it's cheap now, they should be in and buying, they have their chance. Where are they? I am waiting. Show up."
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Wednesday, September 26, 2012
Death Knells For The US Dollar, Gold Price Ready To Explode Upward / Currencies / US Dollar
The recent decision by the US Federal Reserve to contaminate the financial body until it responds favorably was the last straw in my book. Witness a declaration of permanent QE and hyper monetary inflation of the most virulent strain, unsterilized. The USFed is essentially admitting failure. The signal serves as the loudest death knell for the USDollar among many in a sequence. On a similar parallel note, lighter and more humorous, one might be reminded of the pirate swash buckling style of yelling at the swabbies that the beatings will continue until morale improves. The QE bond monetization of USGovt debt has turned viral and entrenched. It is sold as stimulus, when in fact it acts like a giant wet blanket on the USEconomy. It is intended as stimulus to businesses, but the effect is felt on the financial speculation and on Asian direct business investment. In the past the emergency lever device had been successful only because it was used on a temporary basis. But now the USFed high priest assures it is a permanent fixture, a sign of their failure. The public is too ignorant to comprehend the ruin. They can only see the threat to their personal ruin.
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Wednesday, September 26, 2012
Turkey Lira and the Euro / Currencies / Forex Trading
After hitting a low of 2.1725 at the beginning of August the euro has rallied against the Turkish lira in the past few weeks. The euro climbed to 2.3650 on September 17 but as scepticism surrounding the latest eurozone debt solution has re-surfaced among investors it has retreated since with one euro buying 2.3183 on September 25.
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Wednesday, September 19, 2012
Fed to Debase U.S. Dollar? / Currencies / US Dollar
Is the Fed’s goal to debase the U.S. dollar? The Federal Reserve’s announcement of a third round of quantitative easing (QE3) might have been the worst kept secret, yet the dollar plunged upon the announcement. Here we share our analysis on what makes the FOMC tick, to allow investors to position themselves for what may be ahead.
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Thursday, September 13, 2012
Developed World in Financial Decay - How Long Before Fiat Money Collapses? / Currencies / Fiat Currency
The Current Scene
Since 2007 and the start of the "credit-crunch" the developed world's money system has been under stress. As a consequence, there has been an economic downturn that government and bankers have not been able to stop, convincingly, in the last five years.
The developed world has decayed to the point that it can't handle another major crisis such as an oil price well into the $100+ area.
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Thursday, September 13, 2012
US Dollar Technical Analysis and Forecast, the Fate for Gold / Currencies / US Dollar
The following article was presented to the benefit of subscribers on September 12th, 2012. Rather than mimic a few previous articles I have penned, this one will focus on technical analysis of one Index, with interspersed commentary fitting to what is observed. The most interesting part I found from all of the analysis is how well the Elliott Wave pattern of the US Dollar Index matched initial expectations. At the end of the article, it is hoped that the reader has a better understanding of how economic situations unfolding over the next 8-12 months are going to ultimately hinge on the path of the US Dollar.
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Thursday, September 13, 2012
U.S. Dollar: Don't worry, be happy / Currencies / US Dollar
May we suggest a Twitter version of today's FOMC statement: "Don't worry, be happy! " – No, the economic outlook hasn't improved. In fact, the Fed may want you to take a valium to stomach the ride ahead. Alternatively, if you don't get mollified by the Fed's "communication strategy", you may want to consider taking action to protect the purchasing power of your hard earned dollars.
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Wednesday, September 12, 2012
Counterfeiting Currency Cruises to Nowhere / Currencies / Fiat Currency
The European recession, which continues to steepen, has already caused the ECB’s Mario Draghi to promise to purchase unlimited quantities of bonds with duration of 1-3 years on the secondary market. Mr. Draghi plans to “sterilize” these purchases by auctioning one-week term deposits to banks. But there are two problems with this form of sterilization. The first is there is no guarantee that private banks will hand over all of their newly printed money back to the ECB. Instead, they may choose to make loans to the private sector and receive a higher return, causing a rapid increase in money supply growth.Read full article... Read full article...
Friday, September 07, 2012
The Euro Quacks Like a Fiat Currency, To Print or Not to Print / Currencies / Euro
If it looks like a duck, quacks like a duck, it just might be a duck. We are talking about the euro: it now looks like a currency, acts like a currency, it might as well be yet another currency. The new framework of the European Central Bank (ECB) morphs the euro from a currency of nations to a currency of the United States of Europe. This has major implications on how to value the euro and with it, the U.S. dollar and other currencies.
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Wednesday, September 05, 2012
Forex Market Forecast for the USD/ZAR Currency Pairing / Currencies / Forex Trading
Adam G writes: In this article, we look at the market forecast for an exotic currency pair, the USDZAR. Traditionally, this currency pair has hovered in a range of 6 rands to one US dollar, to 10 rands per US dollar. For some time in 2012, it has stayed within the 7-8 rand per dollar range. Lately, the trade setup shown below has been in formation.
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Tuesday, September 04, 2012
Fiat Currencies get Flushed / Currencies / Fiat Currency
If the August Non-farm Payroll report produces a number of less than 100k jobs, the chances of QE III being announced on September 13th are close to 100%. However, if the number is north of 100k the odds drop, but are still about 80% on more Fed money printing.
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Sunday, September 02, 2012
Most Compelling FX Trading Opportunity Right Now, Forex Video / Currencies / Forex Trading
On the day when the Fed Chairman Ben Bernanke delivers his much-anticipated speech in Jackson Hole, we want to tell you about an emerging forex opportunity which...
...has nothing to do with Bernanke.
And that's exactly what makes this opportunity so promising: Few traders know about it.
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Saturday, September 01, 2012
Forex Trading Opportunity Video Access / Currencies / Forex Trading
Dear Trader,
Jim Martens is the Senior Currency Strategist at Elliott Wave International -- the world’s largest market-forecasting firm.
Since 1992, Jim’s analysis has helped professional and individual investors navigate the most exciting forex market opportunities.
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Thursday, August 30, 2012
Euro Neck and Neck with Almighty Dollar, Render Unto Caesar Part II / Currencies / Fiat Currency
Just what do those bridges and windows on Euro banknotes mean...?
SO IN TRYING to match ancient Rome's monetary reach, the Euro is running pretty much neck-and-neck with the almighty Dollar.
Thursday, August 23, 2012
Expect Stronger U.S. Dollar, More Volatility Heading into September / Currencies / US Dollar
Recent economic data unambiguously shows that the European Union (EU) has slipped into a recession, with little sign that a turnaround will occur soon. In fact, with most European countries facing additional rounds of fiscal austerity, the EU economy is poised to get worse before it eventually finds its footing.Read full article... Read full article...
Thursday, August 23, 2012
A History of Exchange-rate Regimes Infographic / Currencies / Fiat Currency
It’s almost as if currencies are designed to confuse you. In fact, sometimes they even lie to you. Take the pound sterling for example; each 5, 10, 20 and 50 pound note assures you, the esteemed owner, the gracious right to redeem it for… 5, 10, 20 and 50 pounds respectively. Either there’s an awkward “I-give-it-to-you-so-that-you-can-give-it-back-to-me” manoeuvre involved here or somebody’s lying. Well, this quirk and much more is cleared up when recounting the evolution of currency systems over the past two centuries; and as it turns out this history is far more exciting than is usually let on (think political thriller as opposed to economic textbook!). So without further ado here we present a history of exchange-rate regimes from 1821 to the present day.
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