Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Monday, March 23, 2009
Currency Market Mayhem Amdist Stocks Bear Market Short Squeeze Rally / Currencies / US Dollar
By: David_Petch
Currency mayhem this week caused a rally in most commodities as the US dollar broke trend line support and headed lower in a sharp decline. Analysis today will clue into the expected trend of the US dollar over the coming weeks ahead. Read full article... Read full article...
Monday, March 23, 2009
U.S. Dollar Short-term Bounce Before Next Leg Lower / Currencies / Forex Trading
By: ForexPros
The USD opens New York mixed this morning, higher against Yen and lower against other pairs. Overnight equities were firmer lending some support to EURO and stocks are called higher to open New York suggesting better tolerance for risk after a quiet weekend. Overnight comments from ECB president Trichet were seen as positive for the EURO also but traders note the action so far has been largely technical two-way trade. High prints at 1.3737 again drew sellers with lows at 1.3611 attracting buyers on the dips. Russian names seen on the offer traders say suggesting a possible re-balancing of the Ruble basket. Read full article... Read full article...
Sunday, March 22, 2009
How China Could Use Currency as a Weapon / Currencies / China Currency Yuan
By: Money_and_Markets
Bryan Rich writes: China's currency policy is pretty far down the list of priorities for the U.S. Treasury staff. But it could be the turning point in this economic crisis — and for the worse.
Pressures on China to join the free market global economy on an equal playing field have intensified over the years. That's because during the last few decades, the artificially weak yuan had given China a distinct and unfair trade advantage, which helped propel its economy to become the third largest in the world.
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Thursday, March 19, 2009
U.S. Fed Buying Treasuries Triggering Massive Exodus Out of U.S. Dollar / Currencies / US Dollar
By: ForexPros
Is everybody happy? The US Fed today announced that they will be buying US Debt in huge amounts starting today and the result was a massive exodus out of the USD. Equities responded positively although more will need to be seen if investors view the progress as net-positive for equities near-term. Read full article... Read full article...
Wednesday, March 18, 2009
Economic Reflation Investing – Which Currencies Benefit? / Currencies / US Dollar
By: Axel_Merk
Reflation refers to policy makers' attempts to “reflate” the economy, to prop up what many would consider a broken system. Federal Reserve (Fed) Chairman Ben Bernanke made it very clear in his March 15 interview on 60 Minutes that he will attempt to stem the tide of market forces: Read full article... Read full article...
Wednesday, March 18, 2009
U.S. Dollar to Weaken on FOMC Announcement / Currencies / Forex Trading
By: ForexPros
The USD continued to consolidate today reaching highs against the majors in early New York but failing to advance into key bullish levels. The majors recovered after the London fix rising off lows and in some pairs flirting with highs into the close. Today’s PPI and Housing Data was benign helping to underpin the possibility that inflation is not a problem and housing is beginning to recover but more data will be needed according to most analysts. Read full article... Read full article...
Tuesday, March 17, 2009
British Pound Short Squeeze Possible Towards £/$1.50 Target / Currencies / Forex Trading
By: ForexPros
The USD ended the New York session lower but off early weakness as two-way technical trade dominated after US news this morning. A weaker NY Man. Index was offset by flat housing data today helping to keep a bid tone to equities lifting the major indices to key resistance during the day; USD traders sold the Greenback as risk-aversion mitigated a bit allowing the majors to hold moderate gains into the end of day.Read full article... Read full article...
Monday, March 16, 2009
U.S. Dollar Weakens as Flight to Safety Lightens / Currencies / Forex Trading
By: ForexPros
The USD is mixed to open New York today after starting mildly better in Asia overnight; traders note initial disappointment from the G-20 meeting which announced nothing new and appeared to be simply a re-hash of the current economic situation created a brief push higher for the Greenback. After testing previous resistance levels across the board the USD began a slide through European trade and is weak at the start of New York with the exception of USD/JPY. The rate is still holding the 98.00 handle after testing the 98.50 area of reported supply with stops noted above but offers continue to hold the rate back into an inside-range day so far. Read full article... Read full article...
Thursday, March 12, 2009
U.S. Dollar Topping, Aggressive Traders Should Sell the Dollar / Currencies / Futures Trading
By: ForexPros
Volatility was the rule again today but USD action was not as pronounced as yesterday’s whipsaw and the USD ended mixed against the majors to finish New York today. Most of the majors ended after testing important S/R areas and finishing the other side suggesting that the USD is continuing to top around current levels. Ending near the highs after a pullback during the day was GBP and EURO. Read full article... Read full article...
Wednesday, March 11, 2009
Forex Markets High Short-term Volatility / Currencies / Forex Trading
By: ForexPros
It was a wild ride in the major pairs today as the USD fell sharply ahead of the New York open only to reverse hard and make highs in some pairs ahead of the close; traders note that participants were caught “wrong footed” after the New York open and stops from late longs in some pairs liquidated trades done expecting a higher close in the majors. Read full article... Read full article...
Tuesday, March 10, 2009
U.S. Dollar Overwhelming Bullish Sentiment Signs of a Top / Currencies / Forex Trading
By: ForexPros
The USD is holding gains into the end of New York trading today after solid two-way action overnight put the Greenback on the offensive into this morning. Rising to new weekly highs against GBP and yearly highs against CAD; other major pairs remain range-bound and inside-range. Traders note that cross-spreaders for GBP pairs kept Sterling on the defense all day putting in a low print at 1.3741 before stabilizing back on the 1.3800 handle for most of the day. Investor confidence remains weak to start the week as equities remained under pressure and traders note some flight to quality buying of USD was seen but remind that the Greenback is over-bought in the near-term. Read full article... Read full article...
Monday, March 09, 2009
British Pound Plunged Through Support Levels Towards Fresh Dollar Lows / Currencies / US Dollar
By: ForexPros
The USD is higher this morning after a slow start on the defense in Asia, the majors making the best levels of the day ahead of European trade. The Greenback is making fresh highs against the majors in early New York as technical trade and cross spreaders pressure to the upside. Overnight equities markets were lower adding to the upside as well. Read full article... Read full article...
Saturday, March 07, 2009
Euro in Freefall as European Monetary Union Faces Collapse / Currencies / Euro
By: Money_and_Markets
Bryan Rich writes: The biggest victim of the global housing and credit bubble may be the euro — the single currency of 16 European nations. Having just celebrated its 10th birthday in a free-fall, the euro is being exposed for all of its structural weaknesses.
The euro is managed with a common monetary policy. But a fractured fiscal and political structure has left it without a full toolbox to fight hard times. And this chink in the armor is threatening to make the euro's life-span short.
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Thursday, March 05, 2009
US Dollar Shines in a Depression as China buys Metals / Currencies / US Dollar
By: Gary_Dorsch
“De-leveraging” and “Risk Aversion” are the buzzwords cited by many currency analysts, to explain the puzzling strength of the US-dollar, which has climbed by more than 20% since last July, despite the widely held view, that top Wall Street banks are insolvent and only surviving on artificial life support, and with the flow of credit badly constrained, the US economy is spiraling towards a “Great Depression.” Read full article... Read full article...
Wednesday, March 04, 2009
U.S Dollar Short-term Strength, Long-term Collapse / Currencies / US Dollar
By: John_Browne
When President Obama took over the reins of government just six weeks ago, he stood at a historic crossroads. His decision on which route to take will make a profound impact on the future of the American economy and its currency. He could have persuaded a frightened Congress to initiate a structural change that would transform the U.S. economy from its dependence on debt-fueled personal consumption back to a path of productive growth. Instead, he took the easy route: attempting to delay the pain with stimulus and inflation, rewarding his benefactors without truly addressing our structural deficits. Disappointing for a man who campaigned on ‘hope' and ‘change.'Read full article... Read full article...
Wednesday, March 04, 2009
U.S. Dollar Setting up for Massive Trend Reversal / Currencies / Forex Trading
By: ForexPros
The USD is ending today flat to weaker after whipsawing traders all day in both directions; speculation regarding US stimulus actions and upcoming fundamentals is providing both sides with fuel for their argument. After starting weaker in Asia the USD rallied into New York action today extending highs against most pairs by the London fix. Into the afternoon as equities also went two-way the Greenback retreated from highs in most pairs giving bulls a reason to lighten up. Read full article... Read full article...
Tuesday, March 03, 2009
U.S. Dollar Gains, When Will the Flight to Quality End? / Currencies / Forex Trading
By: ForexPros
The USD holds on to gains as lower equities and falling Gold prices pushed investors into flight-to-quality instruments lifting USD to better levels against most major pairs. The one exception is USD/JPY which has failed to extend gains for a second day; high prints overnight at 97.92 went unchallenged in New York as did lows at 96.90 but the rate spent most of the day under the 97.50 area making today an inside range day with a neutral close. Traders note that dips near the 97.00 handle were met with quality bids but the lack of upside follow-through suggests that the rate is topping and due for a deeper correction. Most analysts point out that the USD DX is at a three year high on lighter volume suggesting also that the USD is near a top near-term. Should the USD/JPY break into stops said to be resting between 96.50 and 96.80 area there could be a sharp break pulling all the USD pairs lower. Read full article... Read full article...
Monday, March 02, 2009
The Canadian Currency Faces Deepening Damage Ahead / Currencies / Canadian $
By: Ashraf_Laidi
While the dollar and the yen continue to prove being the strongest currencies during falling equities, let's focus on the currency with the combination of past sell-off as well as prolonged downside ahead. The latest Canadian GDP report accentuates our recent notes highlighting the case against the Canadian dollar as the country produces deteriorating figures on growth, jobs and industrial production. Q4 GDP fell 3.4% annualized (first decline since 91) from +0.9% on Q3, while 2008 GDP rose 0.5% from 2.7% in 2007. Read full article... Read full article...
Saturday, February 28, 2009
U.S. Dollar Bears: Be Very Careful / Currencies / US Dollar
By: Money_and_Markets
Jack Crooks writes: The rest of the world cannot yet decouple from the United States' economy.
Excessive deleveraging of U.S. dollar-based credit is the sure sign that investors have come to understand this fact. They've pulled in extreme amounts of capital in search of a safe place to stash their cash. Read full article... Read full article...
Friday, February 27, 2009
Money Supply and the Purchasing Power of Fiat Currencies / Currencies / Fiat Currency
By: Mike_Hewitt
1. Introduction - In this paper, we analyze the value of money. We consider both paper money and gold. We attempt to relate the supply of money (MS) and gold to their purchasing power (PP). We demonstrate the extent to which printing of money dilutes its value. As a store of value, the value of money is represented by its purchasing power. We compare the ability of paper money and gold to function as a long-term store of value. We conclude that gold is an excellent store of value, while paper money is not. We observe that excessive printing of paper money is the ultimate cause for the inability of paper money to function appropriately as a store of value. Read full article... Read full article...