Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Thursday, July 02, 2015
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! / Currencies / Eurozone Debt Crisis
By: Nadeem_Walayat
This week Greece started to default on its debt repayments. However, unlike other countries that have gone bankrupt in the past, Greece as part of the Euro-zone officially cannot print money and inflate the purchase power of debt, wages and savings away. In exchange for this Greece enjoys monetary stability i.e. low inflation which means the only way to deal with the structural deficit that is generating the debt is to CUT government spending and wages so as to make Greece more competitive.
Wednesday, July 01, 2015
Beyond Greece: The Euro's Fundamental Flaw / Currencies / Eurozone Debt Crisis
By: Rodney_Johnson
The euro has more problems than just Greece. The great "euro zone" experiment was bound to have a few kinks... but it is more flawed than it seems.I have a sister who is two years older than me. We fought from time to time growing up. I distinctly remember this one time when I was 11 and our dad forced us to make up by putting our arms around each other’s shoulders. I don’t remember what the fight was about, but I do remember that the outcome wasn’t pleasant!
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Tuesday, June 30, 2015
U.S. Dollar Final Rally / Currencies / US Dollar
By: Ed_Carlson
DXY gained 1.46% last week to close at 95.65 back above its 34-dma as well as its mid-June reaction high (a higher high) giving hope to the bulls that the final rally is upon us. Despite the bearish seasonality of July, cycles indicate that the Dollar is set for one "last hurrah" prior to a "summer swoon" a month from now.
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Tuesday, June 30, 2015
How Does Greece Influence Bitcoin? / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
Yesterday, we wrote how Bitcoin doesn’t necessarily have to be linked to the Greek situation. Yes, the recent turmoil has coincided with capital controls in Greece but this might not be a stable situation contrary to what one might think only looking at the price action. Today, on the Fortune website we read:
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Monday, June 29, 2015
GBP: Battle of the Central Banks / Currencies / British Pound
By: Richard_Cox
Since the beginning of April, we have seen some relatively strong upside moves in the British Pound (GBP). For many, these moves were surprising, given the massive declines that were posted by the currency in 2014. But all of us with experience in the financial markets know that no single trend can last forever, no matter how strong the technical or fundamental basis for the initial reasoning. This turned out to be the case for the GBP over the last few weeks and we have now seen the GBP/USD overcome important psychological levels just above the 1.5750 mark.
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Monday, June 29, 2015
China Resets The Currency Markets / Currencies / China Currency Yuan
By: Chris_Vermeulen
The Chinese central bank is backing its Yuan with GOLD. This may set the Yuan as a “New Reserve Currency.”
If this happens, a new order in global currencies will appear. This would attract new foreign capital. The rest of the world will view the Yuan as a real currency rather than a fiat currency. Creating the Yuan with a gold standard will surely make China more powerful and become a more influential world power.
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Friday, June 26, 2015
Bitcoin Situation Getting Tenser / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
Bitcoin is getting more and more attention from the banks and exchanges but it still remains relatively unknown to consumers, we read on CoinDesk:
A new survey published by Goldman Sachs has found that just over half of US millennials believe they will never use bitcoin.
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Friday, June 26, 2015
USD Daily, Weekly, Monthly & Conclusions / Currencies / US Dollar
By: Gary_Tanashian
USD has been in correction since the hysterical March top. The daily chart shows a series of lower highs and lower lows that was interrupted last week when USD failed to make a lower low, Hammered and bounced… right to the EMA and SMA 50’s.
So we remain on watch for a) a higher high or b) a lower low. It’s very simple. As it stands, the near-term is bearish until it proves bullish, not the other way around. That is because the existing trend is down (AROON, bottom Panel).
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Thursday, June 25, 2015
Managing Trade Deficits / Currencies / Fiat Currency
By: Alasdair_Macleod
Currency devaluation is seen by nearly every macro-economist to be the cure for trade deficits. Recently they have recommended it to Greece arguing for the reintroduction of the drachma so that the Greek economy can become "competitive", and "rebalanced". This widespread assumption is easily demonstrated to be incorrect.
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Wednesday, June 24, 2015
FTSE 100 Stocks Index Could Rally on Greek Resolution / Currencies / UK Stock Market
By: Richard_Cox
When we look at some of the biggest financial news headlines of the year, it is difficult to discount the continued discussions that have centered around the European sovereign debt crisis. This might sound like a throwback to 2012, but these are issues that have once again resurfaced and might be even more important now than they were just a few years ago. This is largely because there are factors that solidify the need of one or more countries to exit the monetary union.
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Wednesday, June 24, 2015
When the Tide Turns Into Cash / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
Here comes the “Better than Cash Alliance”.
So unless they can find a way to exempt themselves from this madness it will die in Congress.
The tighter they grip it, the more sand falls through their fingers.
Whistling past the graveyard for as long as they can, "living in the aborted moment". This will never work for simple reason.
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Tuesday, June 23, 2015
Bitcoin Price Stays below $250 / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
Barclays is interested in the Bitcoin technology and has partnered with a Bitcoin exchange to explore blockchain technologies, we read on CoinDesk:
Barclays has signed off on a proof-of-concept to trial bitcoin technology.
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Tuesday, June 23, 2015
Euro Bourses and Euro Currency's Inverse Relation Still In Play / Currencies / Euro
By: Ashraf_Laidi
The euro-Dax-bunds relationship continues in full swing, led by a rallying Dax (and rest of Eurozone bourses) resulting from the most notable steps taken by Greece towards reaching a deal with creditors in four months.
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Monday, June 22, 2015
Euro Uncertainty Reflected in COT Report / Currencies / Euro
By: Dan_Norcini
First of all, Happy Father's Day to all you Dads out there. There is no greater or fulfilling calling in life than being a dad. Everything else pales in comparison.
Secondly, Dad's must make a living to provide for their family and that forces us back to the reality of dealing with the markets and trying to get a read on what is driving what and WHY.
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Sunday, June 21, 2015
The Twilight of Cash? / Currencies / Fiat Currency
By: Andy_Sutton
Many decades ago you could walk into almost any bank with a bundle of cash and exchange it for a predetermined amount of gold and/or silver. Cash was used because of its portability, light weight, and the confidence of the citizenry that it was as good as gold. I’m sure you already know where this is going. Fast forward to present day and look around you at the plight of cash. It is now redeemable for nothing, is essentially worth nothing, has zero intrinsic value, and despite ludicrous measures, is rather easily counterfeited. So the question I’m going to pose is this: Why oh why would banks, the USGovt, and the global establishment want to outlaw and abolish something that is already a proxy for slavery and servitude? The dollar (and all paper currency for that matter) has already fulfilled its predestined purpose. A dollar buys a nickel’s worth – quite literally – and still people will break their backs, sacrifice their families, and even take the life of another all in the pursuit of pieces of paper. Why is the establishment so against cash?
Friday, June 19, 2015
The Tragedy of the Euro / Currencies / Euro
By: Arkadiusz_Sieron
The gloomy economic situation of Greece has been the topic of many Gold News Monitors – we wrote recently about it here and here, but also in the February Market Overview dedicated to European turmoil from the beginning of this year. It is high time to analyze more thoroughly the relationship between Greece’s debt crisis and gold. But first we must examine the institutional foundations of the Eurozone and its currency, as they not only did not prevent, but actually encouraged imprudent Greece’s fiscal policy, which led to the current crisis.Read full article... Read full article...
Friday, June 19, 2015
Is Bitcoin Price About to Move? / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
Yesterday, we wrote about how the recent hype about Bitcoin rallying "because" of Greece might be overstated and that finding a real "reason" behind a given move is extremely hard if not impossible. Today, read yet another piece on how Bitcoin can shift things around for Greece:
Read full article... Read full article...As Greece stumbles toward capital controls, bitcoin is once again proving its disruptive power within the global financial system.
Thursday, June 18, 2015
The Importance of RMB Currency Internationalization / Currencies / China Currency Yuan
By: John_Mauldin
For the last four years, I have been highlighting the idea that when Beijing floats the renminbi, the currency may go down, not up, which is the exact opposite of what those who accuse China of currency manipulation believe would happen. I had this very argument with Lindsey Graham two weeks ago at a small dinner in New York, where I listened politely to his positions on a variety of topics until he began talking about currency manipulation. Given that the preceding topic had been the Federal Reserve, and considering that the rest of the world considers the quantitative easing that the Fed did to be the epitome of currency manipulation, I found that I couldn’t sit still; and we engaged in a very, let’s call it intense, back and forth. To the Senator’s credit, and my surprise, after dinner he came over and asked if I would visit him in New York, which is now on my short list of things to do.
Thursday, June 18, 2015
USD Rally at Critical Levels / Currencies / US Dollar
By: Ashraf_Laidi
One way of grasping the latest tumble in the US dollar is to think of the following:
As expectations of a 2015 Fed hike grew increasingly cemented in the market, traders demanded a higher bar of positive US data performance, especially as macro-normalisation in Europe transitioned into outright progress. Not only most US figures failed to show a sufficient upside surprise since end of April, but business surveys and inflation data from Europe revealed evidence of progress from the ECB's QE program.
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Tuesday, June 16, 2015
USDJPY Rare 40-Month Cycle / Currencies / Japanese Yen
By: Ashraf_Laidi
While markets' attention is placed on the latest rumour from German tabloids and the habitual Greek denials, let's focus on the other USD pair.
When USDJPY hit the 125.86 high earlier this month, it was its highest level since June 2002. The 65% climb from the February 2012 lows of 76.03 lasted took 40 months to occur, matching the duration of the 85% rise from April 1995 low to this month's high.
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