Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Wednesday, June 02, 2010
North European Euro Nations Preparing to Slaughter the PIGS / Currencies / Euro-Zone
Natural forces are at work in Europe, powerful forces, in fact forces that are not evident. It is amazing how little the financial analysts notice the forces at all. Since the year 2007, a hidden force began to put pressure on the European Union financial underpinning. Like any fiat currency, the foundation resorts to debt. It came to my attention almost three full years ago that Spanish EuroBonds had a yield slightly higher than the benchmark German.
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Wednesday, June 02, 2010
The Euro is Doomed, But So is the U.S. Dollar / Currencies / Fiat Currency
Greece has made it obvious: The euro is doomed. This fact had been obvious to all the euro critics from the very beginning. All the arguments against the possibility of a common currency for very disparate countries had been raised, but brushed away by overzealous politicians.
They’ll learn their monetary lesson the hard way in the coming years.
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Wednesday, June 02, 2010
The Euro Zone Has Failed, Czech Republic President / Currencies / Euro
Has the Euro Zone "project" been a success or a failure? Václav Klaus, president of Czech Republic makes a solid case 'The Euro Zone Has Failed'
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Wednesday, June 02, 2010
Special Drawing Rights Emerge in European Bailout / Currencies / Fiat Currency
SDRs, or special drawing rights, are a type of off-the-wall currency floated around the International Monetary Fund. In order to keep everything clean, orderly and honest, (as much as it can be with an institution more powerful than most national governments), the IMF created the SDR to easily exchange a country’s reserves for individual currencies. When a country possesses 1 SDR, they actually own a basket of world currencies, and many suspect SDRs could soon become the world's reserve currency.
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Saturday, May 29, 2010
Euro Crash And Real Resource Bancor / Currencies / Euro
From as early as mid-year 2008 it was possible to predict the overvalued Euro, always able to gain from intrinsic US dollar weakness, was itself heading for a fall. Unsurprisingly and until late 2009 speculators first shifted to buying the traditional hedges, Gold and Oil, rather than directly attack the Euro. This strategy was however soon troubled by the arrival of the sovereign debt overhang from global economic recession. Contrary to first impressions, the US sovereign debt crisis is at least as irremediable as European national debts.
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Friday, May 28, 2010
EUR/GBP Reaches Pivotal Level / Currencies / Forex Trading
From the early March high the slide back in EUR/GBP has turned from what might have been a simple correction in a larger bull move into an early indication of a medium term bear phase, though not, as yet, confirmed.
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Friday, May 28, 2010
Euro Crisis, The Hidden Agenda / Currencies / Euro
"Watch out for emergencies. They are your big chance." ~ Fritz Reiner
While everyone is focusing on the so called obvious factors, they have missed the most important factor; the real reason behind the crisis. The crisis started in Greece and the top EU members knew they were going to bail out Greece and potentially any other member that needed help, but they pretended that they would not. One of the obvious reasons for the bailout was not to protect Greece, but to save the bond holders; most of the bond holders are foreigners. That's the same reason the banks were bailed out in the US, to protect the large shareholders; it's all a game of smoke and mirrors.
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Thursday, May 27, 2010
Critical Juncture - Update on the Euro, Australian Dollar and Japanese Yen / Currencies / Euro
Our long-term outlook on the euro remains more positive than that of many market participants. There are numerous reasons for our view, amongst others because it is more difficult to print and spend money in the eurozone. Fiscal coordination is rapidly improving in the eurozone, addressing the euro area's key deficiencies. Since the announcement of the $1 trillion credit line less than 3 weeks ago, Spain, Portugal and Italy have all passed substantial fiscal consolidation measures. Germany is also seizing the opportunity, proposing to reform labor markets.
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Wednesday, May 26, 2010
Gold Correction Factors, Hidden Dollar Swap Hammer / Currencies / US Dollar
Let me start the article with a personal note. For the last six years, my pen has put forth a public article almost every week. Since the end of 2009, a change has come from that pattern, for four reasons. First, articles take time and serve as free volleys sent into cyberspace. They are attempts to raise awareness of a broken corrupt system, to encourage increased investment protection by the investment community, and to make repetitive messages that can sink in. Second, many of the warnings have come true of a monetary system in tatters, an insolvent banking system, a failed central bank franchise system, and a discredited amalgam of sovereign bond markets.
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Sunday, May 23, 2010
Euro Collapse Looms? Panic Ban On Naked Short Selling / Currencies / Euro
Germany's Chancellor Angela Merkel says the Euro currency is at risk and that Europe faces its greatest challenge since the EU was formed. It comes as stock markets in Europe and Asia tumbled on the surprise news that Berlin was banning types of 'short selling' where investors profit by betting that shares will drop in value.
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Saturday, May 22, 2010
Massive Currency and Debt Devaluations Lie Ahead / Currencies / Global Debt Crisis
The run-up in the stock market from March 2009 until last month was sharp and rewarding … for some. But there was one problem, it came with disproportional risk. You see, the stock market rose to an extent that it was pricing in perfection … a V-shaped recovery … a return to normal.
That overly optimistic view on the world can make for an ugly ending …
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Saturday, May 22, 2010
Euro Gains as Germany Finalizes Eurozone Support Package / Currencies / Euro
German lawmakers have moved very quickly to officially put into a place a loan assistance package for debt ridden European Union countries. Citing the growing despair in the marketplace, German leaders noted that making the support package official was important to concerned consumers and investors.
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Friday, May 21, 2010
Euro Panic Buying Opportunity / Currencies / Euro
The condition of Europe has become the psychological linchpin governing the world’s financial markets. Even the notoriously insular American investors are fretting about Europe’s woes on an hour-by-hour basis, which is incredible. The euro currency has become the focus of the global Europe fears, trying unsuccessfully to shoulder this crushing burden. The result is the euro’s recent panic-like plunge.
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Friday, May 21, 2010
EURO EXPERIMENT: German Steel or Schmucks? / Currencies / Euro-Zone
The European Crisis is proving to be more of an unraveling than a contagion.
I have long written that the European Monetary Union (EMU) constitution and Euro currency should be viewed in the context of a risky bet versus a sound regional monetary strategy. The odds of the EMU’s survival are presently reflected in a plunging Euro, despite a historic and unprecedented intervention. This indicates that the EMU’s existence in its current form is now a bad bet.
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Friday, May 21, 2010
EUR/CHF Downmove Stalls, Again / Currencies / Forex Trading
Twice before, this year, the downmove in the EUR/CHF cross has shown signs of trying to find a decent support level, but with bears then driving values lower. For a third time, now, the chart has reached a point where it is worth looking closer for signs of bear fatigue.
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Thursday, May 20, 2010
Bernanke’s Blackhawk Helicopter and the Global Currency-Trade War: DEFCON 2 / Currencies / Quantitative Easing
Chairman of the U.S. Federal Reserve Board, Ben Bernanke, is now famous for declaring his willingness to use a helicopter to dispense dollars to stop U.S. deflation. In the spirit of shock and awe, he promised the indiscriminate firing of dollars into the U.S. and global economy, without concern for friendly fire casualties. Granted, indiscriminate firing of dollars near innocent savers and trading partners is not friendly fire, but stick with this analogy, it gets better.
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Thursday, May 20, 2010
Euro Trending Towards Parity to the U.S. Dollar, Fast! / Currencies / Euro
Don't be surprised when one euro equals one dollar... it could happen.
As everyone in the Western World knows, Europe has been having its share of major problems. All of Europe’s trials and tribulations have had a dramatic affect on the performance of the euro, recently putting it under severe pressure.
Thursday, May 20, 2010
Euro Crisis Totally Out of Control? Implications / Currencies / Euro
The evolving Euro crisis is expanding and deteriorating rapidly. In only one week since the $1 trillion EU proposed bailout, the following happened:
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Wednesday, May 19, 2010
If The Euro Collapses What Will Happen to the Oil Price? / Currencies / Euro
According to the IMF World GDP in nominal terms expressed in dollars was $57 trillion in 2009. The European Union accounted for 29% of that; and lets say another 10% of the world implicitly or explicitly link their currencies to the Euro (for the sake of argument I’m assuming the Pound tracks the Euro and the Yen will track the dollar more or less).
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Wednesday, May 19, 2010
ECB Euro Currency Market Intervention is Inevitable / Currencies / Forex Trading
The massive 200-pip jump in EURCHF in less than 10 minutes (13:00-13:10 BST) is the work of no other than the Swiss National Bank intervening to sell its own currency. But the 80-90 pip jump in EURUSD must also be the work of European banks intervening on behalf of the ECB to boost the ailing euro. The events of the last 2 weeks imply that coordinated central bank intervention is possible. If it took 2 days for the ECB's to make an about turn on bond-purchases and for Berlin to institute a ban on naked shorts, then the prospects for intervention are very plausible.
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