Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Monday, August 01, 2011
The Secret Way to Profit from the U.S. Debt to China / Currencies / Forex Trading
Sean Hyman writes: Perhaps the biggest reason our country is facing a contentious debt-ceiling debate is because of the massive U.S. debt to China.
It's easy to forget that China is the world's largest buyer of U.S. Treasuries and it has as much to lose in this high-stakes game of chicken as does the United States.
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Friday, July 29, 2011
Thoughts on Currency Speculation, Dollar, Breaking Correlation Between the Euro and Gold / Currencies / Fiat Currency
A few weeks back, we mentioned that ’we would embrace [a short-term higher high in the dollar index] as an opportunity to take part on the long-side‘. The dollar index has come under some pressure over the past week, so just in case any of our readers were wondering if we’ve changed our minds completely, I thought I’d highlight why we’re sticking to our long dollar position for now (even though the immediate price action hasn’t corroborated this view yet). In the process of outlining our view, I’ll go over our philosophy on currency speculation and consider the breaking correlation between the dollar price of the Euro and the dollar price of gold.
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Wednesday, July 27, 2011
Most American's Don't Believe the U.S. Dollar Will Collapse / Currencies / Fiat Currency
By Jeff Clark, BIG GOLD : In spite of constant headlines about debts and deficits, most Americans don’t really believe the U.S. dollar will collapse. From knowledgeable investors who study the markets to those seemingly too busy to worry about such things, most dismiss the idea of the dollar actually going to zero.
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Tuesday, July 26, 2011
U.S. Dollar Default to Change Gold and Silver Markets / Currencies / US Dollar
Last Friday we were led to believe that the debt-ceiling crisis would be over by the start of Asia's business on Monday. The weekend has gone and so the deal. The markets are very nervous and beginning to worry that a deal will not be made. This is merely a political game to earn a name because one or the other gives-in first. But the two leaders represent national parties and not themselves; therefore, the sensitivity needed to back down just in time isn't there. The structure of politics doesn't allow it. Not only that, but it takes a few days to implement the ceiling change.
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Tuesday, July 26, 2011
Safe-Haven Currencies: If You Want to Flee the U.S. Dollar, Here Are Four Places to Hide / Currencies / Fiat Currency
Martin Hutchinson writes: As a young British banker in the inflation-ridden 1970s, I got used to carrying large amounts of German deutsche marks, Swiss francs and Japanese yen in my wallet - to have some security against the lousy performance of the British pound sterling.
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Monday, July 25, 2011
Eye on Euro / Currencies / Euro
It is interesting that the EUR/USD is circling unchanged this morning while spot gold price continue to climb in reaction to the ongoing impasse in the U.S. debt ceiling debate. You would think that if the desperate elements within the EC political structure managed to find common ground to deal with (quarantine) Greece during a crisis, that U.S. politicians would be able to put aside some of their differences to end this game of brinkmanship to avert an unprecedented crisis.
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Monday, July 25, 2011
Worried about Fluctuating Money Values? Forget it! Start Worrying about Fluctuating Money! / Currencies / Fiat Currency
The great worry that hastened the establishment of the world’s central banks was that monies tended to fluctuate in value. Here, I explain how such ‘fluctuating money values’ came about and — importantly — how this attribute has since mutated. Hopefully, by the end of this article it should be clear that it is changing money, and not fluctuating money values, that one should be focussed on!
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Wednesday, July 20, 2011
U.S. Dollar Supply and Demand Altered Dynamics, Silver Targets $100 / Currencies / Fiat Currency
The economic theory in textbooks must be updated to account for Fiat Soft Science. An important third factor determines price. It is not demand, as most Deflationist Knuckleheads claim. It is not supply, as the moronic followers of Laffer Curve advocates insist. Instead, it is the falling USDollar since all commodities are priced in US$ terms. Lower demand will not result in lower commodity prices, since the monetary effect trumps all. The twist lies in the pricing denomination units, not in the Price Demand dynamics. An inflationary recession is deeply rooted in progress, with a depression next to occur. The price effects continue to confuse the dullard economists who have actually foreseen almost nothing in the current ongoing crisis. Their collective value is far less than garbage collectors who tend to the landfills, or landscapers who improve the appearance of home lawns. The crisis toward wreckage all occurs like a wrecked house floating over a waterfall for all to observe in sheer horror, as wealth evaporates and national sovereignty is forfeited to creditors.
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Wednesday, July 20, 2011
Making the U.S. Dollar Safer: Return ON Your Money / Currencies / US Dollar
Today’s debate may be focused on whether the debt ceiling will be raised, but it’s tomorrow’s debate that really concerns us. Last week, Standard & Poors made it clear that raising the debt ceiling would be one thing, but in order to withhold a downgrade to the U.S. credit rating, the U.S. must show that it is not “maxed out.” In other words, show that it would be able to manage another crisis, or a potential war. What would be the implications of a credit downgrade? And what policies would need to be engaged in, in order to avert a downgrade and strengthen the U.S. dollar over the long-term?
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Friday, July 15, 2011
EUR/USD Next Bear Leg Now in Process / Currencies / Euro
Our previous Update on EUR/USD highlighted a key reversal week in early May, which has marked the start of a consolidation/correction phase. Following renewed weakness we look at where the next supports reside.
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Thursday, July 14, 2011
Bernanke’s Nightmare / Currencies / US Dollar
The Great Ron Paul (no factiousness intended as Dr. Paul is truly one of a kind), has once again stymied the not-so-great Bernanke. After listening to Bernanke ramble on about people buying precious metals because of tail risks*, Mr. Paul finally interrupted and asked Bernanke point blank: ‘Do you think gold is money’? Bernanke’s answer, after an awkward pause, was as follows:
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Thursday, July 14, 2011
The Collapse Of Paper Money and The Vertical Move Of Gold / Currencies / Fiat Currency
Paper money, invented by the Chinese, first appeared in the West in the 13th century. Brought back from China by Marco Polo and his uncles, author Ralph Foster describes the West’s reaction to the hitherto unseen phenomena of money as a piece of paper.
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Thursday, July 14, 2011
The Bell Tolls For The U.S. Dollar / Currencies / US Dollar
What an incredible day. I spent most of my day overlooking the beach in southern Mexico and so I was unaware of the buzz of activity that was going on worldwide. Around sundown, as I do most evenings, I then made my way to my office, Starbucks, and took my place in my usual seat, the red comfortable chair with armrests and began to scroll through the news of the day via the last free place on earth, the internet. And what a day it was!
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Tuesday, July 12, 2011
Panic in the Markets, Making the U.S. Dollar Safer, Return OF Your Money / Currencies / US Dollar
There is panic in the markets: reviving memories of the peak of the financial crisis, investors have recently appeared less concerned about the return on their money, rather focusing on the return of their money. In what is a hallmark of grave investor concern, investors are paying for the privilege of lending money to the U.S. government: the yield on one and three month Treasury bills has been flirting again with negative yields.
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Monday, July 11, 2011
How the British Pound Sterling Fell From Grace / Currencies / British Pound
The pound sterling has come a long way since its heyday back in the 19th and early-20th centuries. Since then, the dollar has taken its place and — potentially — is itself to be supplanted in the not-too-distant future. Here, I get to grips with the marginalization of the pound as the world’s favorite ‘reserve currency asset’.
Instead of bamboozling you with the jargon used by the typical student of money, I thought I’d outline a few rudimentary concepts first. There are two main reasons for doing this:
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Saturday, July 09, 2011
Coiling U.S. Dollar Set to Unwind / Currencies / US Dollar
Over the medium-term, like many other broad based indices, the dollar continues to consolidate in a rather large sideways range. Its boundaries however, are not visually discernable in looking out over the short and near term as we’re doing here.Over the near-term, the dollar has been coiling in a contracting triangle from late May. Although it reserves the right to continue coiling for a couple of more weeks, the longer it does so, the more violent the unwind may be.
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Friday, July 08, 2011
Worldwide Fiat Currency Race to Debase! / Currencies / Fiat Currency
Take a moment to examine how gold and silver have performed against their fiat currency competition through the first half of 2011.
Gold has appreciated an average of over 3.4% versus over 70 fiat currencies though middle 2011.
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Thursday, July 07, 2011
The Politics of Debt Default: Roadmap to Debunk the U.S. Dollar / Currencies / Global Debt Crisis
We were one of few who defended the euro when many pundits predicted parity to the U.S. dollar in the spring of 2010, when Greece’s issues first came to the fore. Since then, Old Europe’s currency has had a dramatic comeback, although not without significant jitters along the way. A roadmap is playing out that may lead the euro to debunk the dollar. Not convinced? Let’s look at what is and what isn’t working on both sides of the Atlantic, and how dynamics may play out.
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Wednesday, July 06, 2011
EURO Set to Soar Over Next 5 Years, Reason 10 year Debt Schedule of Europe / Currencies / Euro
Many are going to receive this with skepticism. EURO is set to soar esp against the US dollar and UK pound.
As per the EU stat released debt maturity schedule of PIIGS, a total of 370 bn euros was paid in 2010 while 328 is set to be paid in 2011. What is important to understand though is that the amount due to be retired decreases to 96.5 bn euros in 2016.
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Tuesday, July 05, 2011
Technically Speaking, U.S. Dollar Flirts With Trendline Support / Currencies / US Dollar
After tagging a short-term downside whipsaw reversal target of 74.35 last Thursday, the US Dollar is just a whisker away from (TLS) trendline support on the daily bar chart.
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