Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Friday, January 21, 2011
European Debt Crisis: How to Profit No Matter What Happens / Currencies / Euro
Shah Gilani writes: Since the European debt crisis first emerged in early 2010, it has dominated headlines, roiled the world financial markets, and has kept investors in a perpetual state of alert as they wait for the next shoe to drop.
But let me share with you a little-known secret: Investors who understand where the "fault lines" are forming in this Eurozone debacle can transform the biggest sovereign-debt crisis in years into a major profit opportunity.
Read full article... Read full article...
Friday, January 21, 2011
GBP/JPY Bulls Trying to Gain Control / Currencies / British Pound
Price action in the GBP/JPY cross was relatively subdued in the second half of 2010, although staying on the weak side. A recent bounce has again raised the prospect of a better recovery phase, but key resistance still needs to be overcome.
Read full article... Read full article...
Friday, January 21, 2011
Can Sterling’s Strength Continue? / Currencies / British Pound
We have argued over recent months in the Macro Trader’s guide that Sterling was oversold during the financial crisis and subsequent recession. We judged the UK economy fared no better or worse than most other leading developed economies.
Read full article... Read full article...
Thursday, January 20, 2011
Plans to Save the Doomed U.S. Dollar / Currencies / US Dollar
Reuters’ Emily Flitter asks in a recent column What is Plan B if China dumps its U.S. debt?
Read full article... Read full article...It is worth asking about U.S. officials’ Plan B just in case one day relations take a surprise turn for the worse and Beijing dumps its holdings of U.S. treasuries.
Wednesday, January 19, 2011
U.S. Dollar, AUD, CAD, Euro Forecast Update / Currencies / Forex Trading
Right now, markets are extremely choppy, with the correction in gold stocks, particularly the HUI correcting back to the 490-500 area. From a quick glance of charts, the S&P 500 index and XOI remain in definitive uptrends, while the HUI has pulled back. There is really no change in the technical picture at present...the bubble the FED blew is still growing and will continue to expand until the surface tension of the bubble exceeds the capacity to remain intact and then it will burst. Energy prices are still set to rise, which in turn will raise the cost of every item transported and drive up precious metals. We are in the last two years of the current government term in the US and historically, they have been favourable to the stock markets. Beyond the last half of 2012 and into 2014, things are going to get really ugly. Another deflationary scare will likely occur during this period which will bring down most commodities and markets. After 2014, interest rates are likely to soar as bond holders are going to demand a higher rate of return when it becomes obvious that inflation is well above the stated levels.
Read full article... Read full article...
Tuesday, January 18, 2011
Global Currency War: How to Keep the "Race to the Bottom" From Stealing Our Future / Currencies / Fiat Currency
Martin Hutchinson writes: When Brazil Finance Minister Guido Mantega recently warned of a "currency war that is turning into a trade war," he wasn't far off the mark - at least as far as Latin America is concerned.
In that region - in the last two weeks alone - at least three countries have taken steps to prevent their currencies from appreciating against the U.S. dollar.
Read full article... Read full article...
Tuesday, January 18, 2011
A Temporary Lifeline for the U.S. Dollar 2011 / Currencies / US Dollar
2011 is set to be the year of the dollar’s rebound.At first glance, the dollar shouldn’t be on the rise. Official unemployment is stuck at near 10%. Dozens of municipal governments are set to fall into bankruptcy this year. The federal budget deficit is over $1 trillion. The Fed has signaled its intention to monetize more debt.
Read full article... Read full article...
Tuesday, January 18, 2011
Surge in Euro, Weakness in Gold and patterned drop in Aussie Dollar / Currencies / Forex Trading
The Surge in Euro: Last week was not green backs and regardless of it weakening “materially” it was against Euro where it performed the worst! Many would perhaps think that our reiterated call of Euro bear might have been wrong as on Jan 5th in our article [Euro took a beating yesterday and a bad one! Whereas Greenback doesn’t seem as strong as how the street is portraying it to be] we seemed to be leaning towards the fact that Euro would push higher and Green back would weaken.
Read full article... Read full article...
Monday, January 17, 2011
Why Hold Dollars if the Fed is Going to Intentionally Deflate Their Value? / Currencies / US Dollar
As everyone seems to know, and as you have read endlessly in innumerable reports, the Federal Reserve has expanded its balance sheet by more than two trillion dollars. At present is in the process of adding another six hundred billion dollars of assets by monetizing U.S. government debt. At the same time, Obama Regime's deficit has spiraled out of control. Correctly measured, that deficit for the past year was $1.7 trillion.
Read full article... Read full article...
Monday, January 17, 2011
Medium Term EUR/GBP Downtrend Resuming / Currencies / Euro
A medium term bear signal in the EUR/GBP cross was given in the first half of 2010, with subsequent recovery finding good technical resistance last October. Renewed weakness now looks like the resumption of the main downtrend.
Read full article... Read full article...
Thursday, January 13, 2011
How to Conquer The Market / Currencies / Forex Trading
You only have to watch my earlier videos to see that it has performed very well this week in gold as well as the crude. In today's short video I want to share an ETF that is setting up nicely and should be giving us a buy signal using the same strategy that we used in the earlier gold and crude oil videos.
Read full article... Read full article...
Thursday, January 13, 2011
Bank of China Seeks to Create Global Currency / Currencies / China Currency Yuan
Kerri Shannon writes: State-owned Bank of China Ltd. has announced that it will allow U.S. customers to open yuan accounts to buy and sell China's currency.
According Money Morning Chief Investment Strategist Keith Fitz-Gerald this is yet another deliberate move by China, which is attempting to promote the role of its currency in global trade.
Read full article... Read full article...
Wednesday, January 12, 2011
The China Miracle: Forex Reserves Hit Record $2.87 Trillion / Currencies / China Currency Yuan
In the 'Japan Miracle' of the 1980-1990's it is said that Japan essentially 'monetized its real estate.' There was also a mythology of the superiority of Japanese management, with an emphasis on quality management ironically pioneered by the American W. Edwards Deming.
Read full article... Read full article...
Sunday, January 09, 2011
Falling Euro May Offer the Best Investment OPPORTUNITY of 2011 / Currencies / Euro
As we start the New Year, the global investment climate looks remarkably similar to this time last year. The world is getting more bullish on the outlook for the U.S. Meanwhile, the unfolding sovereign debt crisis in Europe threatens to squash global risk appetite and send not only Europe back into recession, but perhaps trigger another global financial crisis.
Read full article... Read full article...
Sunday, January 09, 2011
The Nomadic Nature of Money / Currencies / Fiat Currency
I was intrigued that a guy named David Thurtell, of Citigroup, surprisingly said, “The liquidity pumped out by central banks means that there is a lot of money sloshing around that needs to find a home.”
I was so intrigued that I was tempted to use it as the basis for my first report to the new supervisor for this quadrant of the galaxy, Karpus Klegg the Implacable, at his new office at Intergalactic Headquarters after the “palace coup” and interstellar personnel shake-up that I just found out about.
Read full article... Read full article...
Thursday, January 06, 2011
Destruction of the U.S. Dollar, The Real Reason Paul Volcker Wants Out / Currencies / US Dollar
The news that Paul Volcker plans to step down from a "panel of experts" advising Barack Obama today will likely whip market participants into a bit of a frenzy analyzing what this could possibly mean.
But, the problem with their conclusions will be that they are starting from an incorrect premise. The great majority of market participants believe that Paul Volcker was responsible for ending the inflation of the 1970s. And, as usual, the great majority of market participants are wrong.
Read full article... Read full article...
Thursday, January 06, 2011
Euro Currency New Year, New Challenges / Currencies / Euro
One interesting aspect of todays blow out +297K rise in Dec ADP is the cautious interpretations circulated for Fridays release of Dec Nonfarm payrolls. Recall the disappointing 39K increase in Nov payrolls from +172 in Oct despite the unexpectedly strong +92K ADP in Nov. Nonetheless, both the US dollar and 10 year yields are rallying across the board of further growth recovery in the US. Noting that Fed Chairman Bernanke will testify to Congress 1 hour after Friday's jobs report, we would expect the Chairman to reiterate the case for buying the entire $600 bln in QE2 even in the event that Dec payrolls show a blowout number with similar proportions to today's ADP (above 220K-250K). Yet despite those reiterations of QE2, bond yields will likely hold on to their upward trajectory eyeing 3.80% before ultimately regaining 4.10-15% in late Q1, which should help support USD vs. EUR, GBP and JPY.
Read full article... Read full article...
Wednesday, December 29, 2010
Aussie Dollar, the Japanese Yen, Euro and Cable all have a different story to tell / Currencies / Forex Trading
First up we look at USD/JPY: The economic data out from Japan was encouraging today as Industrial production as well as retail sales both exceeded the streets guesstimates. This further put a bid on Japanese Yen and prices tumbled to just below 82. This is the region where Bank of Japan first started to tout that it would intervene in the market and as we have said before now that BoJ has made its mark on the market by actually intervening therefore it is high time that it should continue to weaken Yen. We went buyers of the pair at 82 flat and we intend on holding the position.Read full article... Read full article...
Thursday, December 23, 2010
The Faults of Fractional Reserve Banking / Currencies / Fiat Currency
In a November 1, 2010, blog post titled "Could the World Go Back to the Gold Standard?," Martin Wolf, the Financial Times chief economics commentator, comes to the conclusion that "we cannot and will not go back to the gold standard."
Among a number of mainstream-economics arguments leveled against the desirability and feasibility of the gold standard, Mr. Wolf puts forth a line of reasoning that can serve particularly well as a starting point for debating his position. Mr. Wolf writes,
Read full article... Read full article...
Thursday, December 23, 2010
Euro, British Pound Down as US Economy Improves / Currencies / Forex Trading
According to a recent survey by CNN Money, top economists are projecting a 3.1 per cent gross domestic product (GDP) for the United States economy during the final quarter of 2010, after a 2.6 per cent third quarter increase.
The fourth quarter project is an upward revision from previous forecasts and the report also indicates expectations are high for a steady growth throughout 2011.
Read full article... Read full article...