Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Wednesday, November 30, 2011
Guide to Saving the Euro / Currencies / Eurozone Debt Crisis
Can the euro be saved? Is it possible to stem the flight of money from the periphery into the core? With a botched German auction in mind, investors are now wondering whether it’s possible to prevent a flight out of “all things euro”? We examine the dual challenges of fiscal sustainability and bank solvency in this analysis, with the not-so-modest title “Guide to Save the Euro”.
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Tuesday, November 29, 2011
Euro May Not Survive Christmas / Currencies / Euro
The European debt crisis is gathering pace. The debt of the Eurozone countries totals 89 percent of the GDP vs. the required 60 percent. The crisis has hit both secondary and primary economies. The public debt of Greece makes up 166 percent of the GDP, Portugal - 106 percent. The largest economies of the region also exceed the limit: Germany - 83 percent of the GDP, France - 87 percent, Spain - 67 percent of the GDP.
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Tuesday, November 29, 2011
The Anglo-American Century and Why the Financial Engineers Hate Gold and Silver / Currencies / Fiat Currency
'Nominal GDP targeting' is a way of raising the Fed's inflation target without admitting to it explicitly.
Nominal GDP means that one can meet their growth target simply by inflating the money supply to make up the difference between 'real growth' and 'headline growth.'
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Thursday, November 24, 2011
The Money Crisis' First Blush, The Gold Pool Debate / Currencies / Fiat Currency
"I cannot think of anything which would more surely lead to a danger of all-round deflation than the collapse of international monetary confidence."
- Roy Jenkins, then British chancellor, debate on the London Gold Pool, 18 March 1968
This SUMMER'S FIRST U.S. debt downgrade came after Washington failed to fix the debt ceiling one way or the other. Three months later, and Washington just failed again.
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Tuesday, November 22, 2011
Has the Kiwi Dollar Hit Bottom? / Currencies / Forex Trading
The financial markets are on the rebound this morning with beaten up currencies leading the bounce. The NZD/USD has been hammered through November, but is the biggest gaining dollar pair, up 0.56%. The AUD/USD is not far behind, up 0.52%.
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Monday, November 21, 2011
Currency Markets Start Week on Back Foot / Currencies / Forex Trading
This morning we're seeing markets start with a familiar cautious tone. The weekend news flow didn't throw up any big negatives, but hasn't been any big positives either. The Yen and US dollar are the currencies in demand so far this morning with the biggest mover being the AUD/JPY which is down 0.55%. The GBP/JPY isn't far behind at -0.43% this morning.
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Friday, November 18, 2011
Japanese Yen Set For Major Reversal / Currencies / Japanese Yen
This is a 20-year (monthly) chart of the US dollar against the Japanese yen. The dollar has declined in a primary down-trend since early 2008. Long-term support at 80 failed to halt the fall and the greenback is now ranging between ¥75 and ¥80.
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Wednesday, November 16, 2011
Is Germany Eyeing the Euro Exit? / Currencies / Euro
German leaders talk about "more Europe"…but are they just buying time…?
THIS IS just an idea – but perhaps Germany is only pretending to want more European integration.
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Tuesday, November 15, 2011
Why Is There a Euro Crisis? / Currencies / Euro
On Thursday, October 28, 2011, prices of European stocks soared. Big banks like Société Générale (+22.54%), BNP Paribas (+19.92%), Commerzbank (+16.49%) or Deutsche Bank (+15.35%) experienced fantastic one-day gains. What happened?
Today's banks are not free-market institutions. They live in a symbiosis with governments that they are financing. The banks' survival depends on privileges and government interventions. Such an intervention explains the unusual stock gains. On Wednesday night, an EU summit had limited the losses that European banks will take for financing the irresponsible Greek government to 50 percent. Moreover, the summit showed that the European political elite is willing to keep the game going and continue to bail out the government of Greece and other peripheral countries. Everyone who receives money from the Greek government benefits from the bailout: Greek public employees, pensioners, unemployed, subsidized sectors, Greek banks — but also French and German banks.
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Tuesday, November 15, 2011
Odds Stacked Against Eurozone, Euro Currency Likely to Sink / Currencies / Euro
What do the “Big Fitz,” the largest ship ever to sail the Great Lakes, and the Eurozone have in common? Hint: the former sank without a trace. Or, as Grant Williams so eloquently puts it, in his Things That Make You Go Hmmm... for Nov. 13 (this week's Outside the Box), “One can't help but think ... that this week may well have brought us to the wall at the end of the road down which Europe has been kicking the can for quite some time now.”
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Tuesday, November 15, 2011
U.S. Dollar Teetering on the Abyss / Currencies / US Dollar
We all better hope I'm wrong on this one, but I think the CRB just put in its three year cycle low in October. I'm also afraid that Bernanke has done irreparable damage to the dollar. If I'm right about both of those assumptions then we are on the brink of a historic inflationary period.
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Friday, November 11, 2011
The Beginning of the End of Fiat Money / Currencies / Fiat Currency
Last week, the G-20 meetings did not produce an expanded bailout fund for the eurozone. While this may bode well for the long-term solvency of the member-states (moral hazard and all), it has also triggered a market reaction that I expect to help destabilize the common currency. Yesterday's market moves suggested that this development is good for the dollar and bad for gold. Allow me to step back from the stampeding herd to evaluate whether they are, in fact, moving in the right direction.
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Thursday, November 10, 2011
Costless, Limitless, Meaningless Money, Part II / Currencies / Fiat Currency
If this risks sounding metaphysical, so it should... SO a DOLLAR is still a Dollar, just as Richard Nixon told US citizens it was 40 years ago this summer.
Whether the Euro will be worth anything next week, who can say? But since then, 15 August 1971, that's all the Dollar has been – one dollar alone, rather than a quantity of rare, indestructible gold bullion, that "barbarous relic" of pre-Industrial superstition, and beloved of the 21st century's fastest-growing, wealth-accumulating societies today.
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Wednesday, November 09, 2011
Currency Markets Start with Early Weakness - Will it Reverse Like Yesterday? / Currencies / Forex Trading
The morning moves so far mirror what we say yesterday with the Australian dollar leading the fallers. It's almost a carbon copy of yesterday's start which ended with most markets in the black for today as news of Berlusconi's imminent resignation spread.
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Tuesday, November 08, 2011
Currency Markets, Aussie dollar slips on poor trade balance data / Currencies / Forex Trading
This morning the Australian dollar is the day's biggest faller, with the AUD/USD and AUD/JPY dropping 0.65%. Worse than expected trade balance figures are the main catalyst for the move.
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Tuesday, November 08, 2011
Perfect Financial Storm; Eight Reasons to be Bullish on the US Dollar / Currencies / US Dollar
One of my much appreciated contacts is Steen Jakobsen, chief economist for Saxo Bank in Copenhagen, Denmark. Today he passed on an "internal note" that he gave permission to share.
For ease in reading, I will not follow with my usual indented blockquote format.
Tuesday, November 08, 2011
The War that Will Kill the U.S. Dollar / Currencies / US Dollar
A war-mongering U.S. government could be less than 18 months away from decimating the last 5% of value left in the dollar, says Richard Maybury, the author of the U.S. & World Early Warning Report. Until some new exchange-traded-fund-like basket of natural resources provides a store of value, this "juris naturalist" has some advice about how to protect your wealth during the coming collapse.
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Saturday, November 05, 2011
Dollar/Yen Bullish Digestion Pattern / Currencies / US Dollar
Although USD/Yen has been trading in a relatively narrow range between 78.40 and 77.80 since mid-session Monday after Sunday evening's BOJ intervention (to sell yen and buy USD), all of the action off of the intervention high impresses me as a bullish digestion period ahead of another up-leg.
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Friday, November 04, 2011
Why Is The USD So Weak / Currencies / US Dollar
With multiple reports of USD shortages including the need for an emergency Fed swap line in September why is it not showing in the DXY? Is the DXY to the USD what the paper market is to the precious metals?
Put yourself back in September 2008. Fannie Mae was bailed out on September 8 followed by Lehman, AIG, etc through September 22. Over that period the DXY falls 5.6%. Think traders were scratching their heads wondering why the USD was so weak? Where’s the fear? Is the USD as a safe haven trade dead?
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Monday, October 31, 2011
Yen plunges on BOJ intervention / Currencies / Forex Trading
The main news this morning is the Bank of Japan's direct intervention in currency markets to haul the yen back from record highs against the US dollar. The intervention sent the USD/JPY soaring with a knock on effect on other yen and dollar pairs. The USD/JPY is up 4.00%, touching a high of 79.53 after the pair hit record lows last week. There are similar moves on other yen pairs with the GBP/JPY up 3.45%.
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