Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Sunday, April 01, 2012
The Decline of the U.S. Dollar / Currencies / Fiat Currency
In our previous article we looked at whether the U.S. Dollar was headed for a major fall or not. We demonstrated how the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be designmnated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise of destroying "weapons of Mass Destruction" as it appears on the verge of doing in Iran. It is no coincidence that Iran has long since ceased using the dollar to price its oil. It has also eliminated the U.S. dollar from its reserves. But of greater importance to the emerging world has been the use of the Belgian-based SWIFT system of international settlements. Not only has the move stopped the sale of Iranian oil, but it has also interfered with an important source of oil to the emerging world.
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Tuesday, March 27, 2012
Is the US Dollar Headed for a Major Fall? / Currencies / US Dollar
One of the facts of life over the last 40 years has been that the U.S. dollar is the world's sole global reserve currency. This is despite the fundamental factors underlying the U.S. balance of payments, which has been awful over that entire time. Nevertheless, the dollar ruled the global monetary system through these four decades and appears to be doing so still. But is that coming to an end? Next week there is a meeting of the BRIC nation over the use by the U.S. of the SWIFT system to block Iran from selling its oil. The BRIC nations are buyers of that oil. Their views on Iran's nuclear policies do not go as far as refusing to buy their oil. The SWIFT system is the system used to make international payments and covers most acceptable currencies.
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Monday, March 26, 2012
Can Bernanke Break the U.S. Dollar Rally? / Currencies / US Dollar
In response to a bursting real estate and credit bubble in 2007 Bernanke's solution was to crank up the printing press and flood the world with dollar bills. Unfortunately it didn't solve our problems, it only made them worse. The real estate and credit bubbles stayed busted, but that liquidity had to land somewhere. In 2008 it went straight into the energy and agricultural markets spiking the price of crude, gasoline and food. This in turn collapsed a fragile global economy that was already reeling from the real estate implosion. The end result was the exact opposite of what Benjamin intended. Instead of halting the real estate collapse he just magnified the severity of the recession.
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Thursday, March 22, 2012
U.S. Dollar an Euro Make Pivots / Currencies / Forex Trading
Marc Horn writes: US$ and Euro make pivots H2 and H-2 respectively. Expect some action over the next few days!
The DX MAP wave count is H2 of 4H5 of D4 of W-5 of M-3.
Thursday, March 22, 2012
Greece is Now Irrelevant. Spain and Germany Will Decide the Euro’s Future / Currencies / Eurozone Debt Crisis
Earlier this month, Spain began “rocking” the EU boat by telling the EU it wasn’t going to meet the new EU fiscal requirements.
Spain’s sovereign thunderclap and the end of Merkel’s Europe
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Wednesday, March 21, 2012
Falling U.S. Treasury Bonds, A Currency Perspective / Currencies / US Dollar
What are the implications for the U.S. dollar and investors’ portfolios if bond prices continue to fall, as they have of late? Within that context, should investors care whether the U.S. retains its status as a “reserve currency”? Should it effect the way investors think about their own cash reserves?
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Tuesday, March 13, 2012
Why The Dollar and Stocks Could Start Moving In The Same Direction / Currencies / Forex Trading
The theme of the global financial markets is now moving more toward the realization that growth will be ultra-slow (if not recession like territory), unemployment will remain persistently high and global economic shocks will continue to roll through. This is an important realization. Up until recently, the consensus has been that each economic shock or event along the way has been holding the world back from a return to normalcy – a full recovery.
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Friday, March 09, 2012
Should Iceland's Next Currency be Gold? / Currencies / Fiat Currency
Peter Krauth writes: My eyes nearly popped out of my head when I read this headline: "Iceland Considers Adopting Canadian Loonie."
The loonie is otherwise known as the Canadian dollar. Of course, gold would be a much a better choice as I'll explain later.
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Thursday, March 08, 2012
How to Understand the Monetary System / Currencies / Fiat Currency
The reason the global monetary system survives is largely thanks to the public’s blissful ignorance of exactly how it works. To paraphrase one familiar analogy, if you knew how sausage was made, would you still eat it? It’s probably safe to say that the vast majority of the world’s citizens have no clue that the integrity of the currency they work for, save and use as a medium of exchange every day rests on nothing more tangible than their respective governments’ authority to and solemn promise to tax them in the future.
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Wednesday, March 07, 2012
Where is the Euro Headed? / Currencies / Euro
Marc Horn writes: The Euro composite started as a basket index and then became the Euro Index and is pretty much as close to textbook of Andrews pitchforks. When combined with MAP waves, an alternative wave counting method base on many principles of Elliot waves, it gives good results as to approximately where the market will move.
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Thursday, February 23, 2012
Forex Market Trading Insight: EUR/USD Rallies...Why? / Currencies / Forex Trading
On February 16, EUR/USD, the euro-dollar exchange rate and the most actively traded forex pair, surged over 170 pips, from below $1.30 to above $1.3150.
The explanations for the strong rally boiled down to "hopes" that the Greek bond-swap deal would be reached.
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Wednesday, February 22, 2012
Currency Market Forecasts, Forex FreeWeek is Here! / Currencies / Forex Trading
Now through NOON Eastern time Wednesday, Feb. 29, you can have complete access to EWI's most popular service for currency traders -- for FREE!FreeWeek is absolutely free to anyone with a Club EWI user ID and password. There's no obligation to buy, and no credit card information is required.
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Monday, February 20, 2012
FX Markets Analysis, Risk Trades Elongate / Currencies / Forex Trading
Before we begin this analysis, please do make it a point to go through Yen charts and analysis. We were among the first to have seen through the yen weakness in early feb and has now caught over 550 pips in key yen pairs like EUR/JPY, AUD/JPY and CAD/JPY. The yen analysis has been updated with one of the charts provided in the current analysis.
The week has seen strong moves up and down for risk assets but more often than not, they have been in the channel. We take this opportunity to look at some of these pairs.
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Sunday, February 19, 2012
The US Dollar in the week ahead / Currencies / US Dollar
Dr. Chad Bennis writes: The rally in the US dollar beginning in November of last year saw a series of higher highs and higher lows in the price of the index. While the price action moved higher the stochastic indicator showed a bearish divergence as each successive higher high in the price action was reflected by a lower high in the stochastic indicator. This is known as bearish divergence and means that the current uptrend in price is getting weaker with each higher high in the price of the index.
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Sunday, February 19, 2012
Macro Economic News Aiding Currency Market Technicals for 2012 / Currencies / Forex Trading
RBA stood pat early this morning as it kept rates at 4.25% and AUD/USD reacted sharply up to 1.08 levels but was capped at the barrier at 1.08. We expect this level to be challenged.
China early on Friday decided to drain 26 bn yuan from the money market. These are all limiting factors in the risk rally of 2012 and unless you are looking carefully, you may miss these important triggers and on the downside, they will accelerate the falls. Markets unwind differently than when they go up.
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Thursday, February 09, 2012
Will Currency Devaluation Fix the Eurozone? / Currencies / Euro
The NYU professor of economics Nouriel Roubini said in Davos, Switzerland, on January 25, 2012, that tight policies are making the recession in the eurozone worse. According to Roubini what Europe needs is less austerity and more growth. In particular, the NYU professor is concerned about the deep recession in the eurozone's peripheral countries: Spain, Portugal, Greece — all are on a strict regime of austerity. For instance, in Spain the yearly rate of growth of government outlays stood at minus 12.4 percent in November against minus 15.7 percent in the month before. In Portugal the yearly rate of growth stood at minus 3.6 percent in December against minus 2.5 percent in November. In Greece the yearly rate of growth fell to 2.9 percent in December from 6.2 percent in the prior month.
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Tuesday, January 31, 2012
How U.S. Dollar Value Fit Into the Economy Big Picture? / Currencies / US Dollar
More credit is denominated in U.S. dollars than any other currency. What does this mean for the value of the dollar as the credit crisis continues its strangle-hold on the world economies?
Enjoy this video clip of Bob Prechter from an October interview with The Mind of Money host Douglass Lodmell, in which Bob discusses the debt implosion and the value of the U.S. dollar.
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Monday, January 30, 2012
100 Billion Reasons To Buy Apple Stock / Currencies / Tech Stocks
Jack Barnes writes: Apple Inc. (NASDAQ: AAPL) is one of the world's largest companies based on market capitalization.
Cupertino, CA-based Apple just released one of the best earnings reports in the history of capitalism.
In short, they crushed it-sending Apple stock to a fresh 52-week high.
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Thursday, January 26, 2012
The Broken U.S. Dollar / Currencies / US Dollar
It has been my theory that this year we would see one of the worst performances by the stock market since 2008. However that has always been dependent on Bernanke not being able to break the dollar's rally out of its three year cycle low. As of this morning the dollar has printed a failed daily cycle. More often than not a failed daily cycle is an indication that an intermediate degree decline has begun.
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Monday, January 23, 2012
Bullish Set Up on US Dollar / Currencies / US Dollar
The US Federal Reserve meets next week (Jan 24/25) and many are expecting Bernanke to release the next financial QE details. The markets are poised for Ben next market leading action.
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