Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Saturday, May 23, 2009
U.S. Dollar’s Demise Greatly Exaggerated, Still the Worlds Reserve Currency / Currencies / US Dollar
Bryan Rich writes: Many investors are concerned about the future path of the dollar … and with good reason.
The Treasury is increasing the money supply in amounts never seen before or even imagined … all in an effort to avert a meltdown and stimulate a path to recovery. And as expected, there are no shortages of opinions about the trillions of dollars being created out of thin air …
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Saturday, May 23, 2009
Lack of a Credible Alternative Global Currency to the U.S. Dollar / Currencies / Fiat Currency
A crisis is not a good time for seeking alternatives to the US dollar. Most likely, the dreams about new regional currencies will be put aside. The countries, which originally supported those ideas, gradually change their minds. The United Arab Emirates refused to participate in the Arab currency union. The expansion of the euro zone is not likely to happen in the nearest future. The Russian ruble is no longer ambitious either.
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Thursday, May 21, 2009
U.S. Dollar Slashed Due to Fed Quantitative Easing / Currencies / US Dollar
Today's serious case of dollar-damage was once again made courtesy of the nations central bank. The Feds purchase of $7.7 bln in 7 and 10-year treasuries in the morning, followed by purchases of $3.08 bln in Agency securities in the afternoon accelerated the dollar decline and the resulting rally in commodities --as was the case on March 18 when the Fed first announced purchases of long term treasuries. Today's dollar sell-off stood out from previous declines by the fact that EURUSD knifed through the key resistance of $1.3740 (failed 4 times this year) to $1.3830, and even sterling finally managed to break above its 200-day moving average vs USD--something that all majors currencies had achieved in previous weeks surging to a 7-month high of $1.5794.
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Thursday, May 21, 2009
How to Become An INSTANT Billionaire! / Currencies / Fiat Currency
To measure ones wealth, the "price" of ones assets is not very important but the "purchasing power" or "relative value" is very important. Understanding this difference may be one of the most important concepts an investor can learn. To become an "instant billionaire" simply measure the "price" of your investment portfolio in Zimbabwean Dollar's instead of your local currency.
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Thursday, May 21, 2009
The Fiat Currencies Death March, Got Gold? / Currencies / Fiat Currency
The past has condemned us. Only the future can save us- We live in extraordinary times. Poised between the past and the future, never has the present been so uncertain. But, when certainty comes, it will be in the form of a scythe and ducking will be the only option.
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Thursday, May 21, 2009
Austrailian Dollar (AUD) Trend Direction Analysis / Currencies / Forex Trading
Today we are going down under to analyze the Australian dollar. Many traders look at the Australian dollar (AUD) and the Canadian dollar (CAD) as commodity plays. Both countries are rich in natural resources and that seems to be a key element to the recent moves in both of these currencies.
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Thursday, May 21, 2009
Is the U.S. Dollar Heading For a Mighty Crash? / Currencies / US Dollar
Each month, the US Treasury publishes its International Capital account, (TIC) which foreign currency traders and bond dealers use to gauge the flows of money from around the world, into and out-of the US-capital markets. The demand for a nation’s bonds and stocks, combined with international trade flows for goods and services, plus behind the scenes intervention by central banks, all act in concert to influence the foreign exchange market which handles $4-trillion per day.
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Wednesday, May 20, 2009
Is the U.S. Dollar in Trouble? / Currencies / US Dollar
How we analyze the Dollar Index - According to the dollar index (DX), which is a basket of currencies that track the dollar, it would appear as though the dollar is indeed going to be coming under more pressure. The dollar index is much like an index for stocks except in this case it is for currencies.
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Wednesday, May 20, 2009
British Pound (GBP) Upside Trend Break Out Analysis / Currencies / British Pound
Taking another look at the British pound.
On May 8, I produced a video which gave a detailed analysis of the British pound (GBP) versus the US dollar (USD). At that time I expected the British Pound to continue its gains against the US dollar. In today's video I will revisit GBP/USD cross to see just what has happened to this market.
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Wednesday, May 20, 2009
China and Brazil Try to Flee From the US Dollar / Currencies / US Dollar
Brazil's state visit to China has set the chins wagging. Will an agreement be struck to invoice their bilateral trade in their own currencies rather than the dollar? Brazilian President Lula had made some allusions to this last month around the G20 meeting.
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Tuesday, May 19, 2009
Russia Dumps the U.S. Dollar for Euro as Reserve Currency / Currencies / Global Financial System
The US dollar is not Russia’s basic reserve currency anymore. The euro-based share of reserve assets of Russia’s Central Bank increased to the level of 47.5 percent as of January 1, 2009 and exceeded the investments in dollar assets, which made up 41.5 percent, The Vedomosti newspaper wrote.
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Sunday, May 17, 2009
The Incredible Shrinking Global Economies Bullish for the U.S. Dollar / Currencies / US Dollar
Bryan Rich writes: Germany is the world’s largest exporter. And in the broadest global recession on record, demand for its exports has come to a virtual standstill.
As a result, Germany, the core of the Eurozone, is shrinking at a record pace. And Germany isn’t alone. Many of the world’s largest economies have rested on the export model.
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Friday, May 15, 2009
U.S. Dollar index, EURUSD and Commodities Playing Together / Currencies / Forex Trading
Problems are on the both sides of the ocean but technical picture is giving us some new info about potential break of longterm trendline. When we put it in context of breaking the longterm trendline on dollar index, we can see building bearish setup for US dollar. First the EURUSD technical picture.
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Wednesday, May 13, 2009
Fed Seeks U.S. Dollar Devaluation to Reflate the Economy / Currencies / US Dollar
Commodities are rising, the dollar is falling and the trade deficit is growing. Everything bad is good again, thanks to the Feds.
All of the pernicious factors that brought us to the brink of financial Armageddon are now once again returning and are still—amazingly enough--being embraced as both normal and healthy for the long term viability of the U.S. economy. Factors such as a strengthening U.S. dollar, shrinking trade deficit, a surging savings rate and falling commodity prices were all being viewed as the bane of the U.S. economy. And now, unfortunately, what had been the budding re-emergence of economic sanity is being obliterated by a killing frost thanks to the Fed and the Administration.
Tuesday, May 12, 2009
Follow the Money… Out of the U.S. Dollar? / Currencies / US Dollar
Kieran Osborne writes: Recently, stock markets appear to have experienced an almost euphoric phase, seemingly shrugging off most negative news flow day after day. Whether or not you believe in the so-called “green shoots” of economic recovery, a significant economic rebound, or a continued decline in economic activity, one thing seems abundantly clear: investors have been becoming less risk averse. The most commonly followed “fear indicator”, the VIX index, has retracted (likewise, other commonly followed indicators such as the TED spread has tightened and OIS spreads have reverted to levels not seen since the Lehman Brothers collapse), three month T-bill yields have recently risen and equity markets around the world have rebounded from March lows.
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Sunday, May 10, 2009
Reflation Trade Continues, Euro Heading Higher / Currencies / Euro
The developing technical set-up in the Euro-$ could have extremely bullish potential largely because the pattern since last October can be construed as a double bottom (Oct-Mar) followed by an initial upmove from 1.2450 to 1.3735, followed by a pullback into the April 22 low that was contained ABOVE the double bottom lows. And then, during the last two weeks, another rally has emerged that is pushing up against key resistance at 1.3680-1.3735 - as the price structure climbs above its 50 and 20 DMA¹s ahead of its upside breakout!
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Sunday, May 03, 2009
U.S. Dollar Index Analysis and Forecast / Currencies / US Dollar
The US Dollar Index has been experiencing weakness over the course of the past few days and is challenging present support levels, which if broken, could see a dip to 82-83. Analysis today will illustrate various trends in the USD and what to expect over the course of the next few weeks.
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Wednesday, April 29, 2009
U.S. Dollar Turned Back at Yen 100 / Currencies / US Dollar
The dollar seemed on the fast track to cruise past 100 yen and beyond recently. During the six week long stock market rally, the dollar surge to a high point of 101 yen on April 6th. However, as the Dow has flattened and held above 8,000 the last couple weeks, the dollar’s momentum against its Japanese counterpart has waned.
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Saturday, April 25, 2009
Gold and China's Global Currency Threat to the U.S. Dollar / Currencies / China Currency Yuan
For years now we have been warning of the decline of the $ as the globe's reserve currency. The threat is not so much that the monetary policies of the U.S. are cheapening the worth of the $, but that these are pressing so many other nations to search for ways to avoid the US $ in international dealings. China has now taken a momentous, structurally adjusting step to change matters in their favor.
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Thursday, April 23, 2009
Chinese Global Currency Strategy Challenge to U.S. Dollar and Gold / Currencies / Global Financial System
In a series of maneuvers, Chinese officials have revealed their strategy implementation in a very broad set of steps. Beijing leaders plan to establish the yuan currency as a global reserve currency. The process will be made more complete after issuance of a large volume of Chinese Govt debt securities, soon in coming. The number of policy actions is impressive. While the USGovt is busy stepping backwards with FASB rules enabling false bank accounting, gearing up Treasury programs to direct colossal elite welfare / confiscation to failed banks responsible for the crisis, covering up Wall Street fraud and regulatory lapses and debt rating agency collusion, and ordering pork like the $9 billion high speed train from Disneyland to Las Vegas, the Chinese are making important meaningful critical strides.
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