Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Monday, March 21, 2011
U.S. Dollar End Game / Currencies / US Dollar
By: Toby_Connor
For months and months I've been warning investors that the dollar was going to come under extreme pressure sometime this year. I expected it to probably happen in the spring. Many people thought I was nuts. They were sure it was the Euro that would collapse, despite the fact that the EU is doing everything they can to protect their currency while Bernanke is doing everything he can to destroy ours.
Monday, March 21, 2011
How the Fed Is Wrecking the U.S. Dollar / Currencies / US Dollar
By: Joseph_T_Salerno
Testimony before the US House of Representatives, Committee on Financial Services, Subcommittee on Monetary Policy, March 17, 2011
The old argument has recently come back into vogue that moderate inflation is desirable to prevent the far greater evil of deflation. What used to be roundly condemned as "creeping inflation" in the 1950s by Fed officials and mainstream economists alike is today given the scientific-sounding name "inflation-targeting" and hailed as the proper goal of monetary policy.1 In the past decade, this view has been promoted by many mainstream economists, most notably former Fed Chairman Greenspan and current Fed chairman Bernanke. But this view is based on a fundamental confusion. It conflates deflation and depression, which are two very different phenomena. Falling prices are, under most circumstances, absolutely benign and the natural outcome of a prosperous and growing economy. The fear of falling prices is thus a phobia – I call it a "deflation-phobia" – which has no rational basis in economic theory or history.
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Sunday, March 20, 2011
Japanese Yen: G7 Intervention vs Laissez-faire / Currencies / Japanese Yen
By: Dian_L_Chu
The world's fifth-largest 9.0 magnitude quake and the resulted tsunami not only devastated Japan, but also wreak havoc in the Japanese stock market. The worst two-day rout in 40 years caused a 6.2% drop in Nikkei share index, wiping £90 billion (roughly $145.45 billion) off stocks and shares traded there, reported The Telegraph.
Saturday, March 19, 2011
Quake Response Puts Yen on the Line / Currencies / Japanese Yen
By: Peter_Schiff
One of the immediate financial consequences of the catastrophic Japanese earthquake is that Japan needs to call on its huge cache of foreign exchange reserves to rebuild its shattered infrastructure. To pay for domestic projects, Japan will require yen - not dollars, euros or Swiss francs. As a result of these conversions, the yen rallied considerably after the quake struck.
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Friday, March 18, 2011
Eye on the Yen, Watching ProShares UltraShort Yen (YCS) / Currencies / Japanese Yen
By: Mike_Paulenoff
Indeed, as we told subscribers to expect, the G-7 (US, Japan, Germany, France, the UK, Italy and Canada) decided to intervene with the Bank of Japan on Thursday to "stabilize" the Yen.
Now the real battle begins, but as I have mentioned lately, the plight of the Yen since 2008 (its relentless climb, that is) in defiance of otherwise dismal Japan fundamentals, which were negatively exacerbated by the recent earthquake and tsunami damage, desperately calls for a lower currency to enable the Japanese economy, the Japanese Government, and its dynamic people to recover.
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Friday, March 18, 2011
G7 Yen 'No-Buy' Zone, UN Libya No-Fly Zone / Currencies / Japanese Yen
By: Ashraf_Laidi
Before we get into today's yen action, our regular readers and followers on Twitter were warned of a potential China tightening action at 7:24 am GMT (over 3 hours before it materialized) when most pundits were mulling the details of the yen intervention. The PBOC raised its reserve requirement ratio by 50-bps to 20% as part of its gradualist approach to reining in lending and combating inflation.
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Friday, March 18, 2011
Japanese Banking Crisis is Inevitable Despite G7 Currency Market Intervention / Currencies / Japanese Yen
By: Money_Morning
Keith Fitz-Gerald writes: The United States and Canada today (Friday) joined other Group of Seven (G-7) nations to intervene as a means of weakening the Japanese yen in an effort to help Japan deal with last week's catastrophic earthquake and tsunami.
This G-7 intervention is a substantial development, although there are precious few details, since none of the world's central bankers (a list that includes the U.S. Federal Reserve) have commented on exactly what "intervention" entails. Nor have they identified what currencies will be involved.
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Friday, March 18, 2011
Gains in EUR/GBP Nearing Key Resistance / Currencies / Forex Trading
By: Seven_Days_Ahead
Following an earlier medium term bear signal in the EUR/GBP cross the next stage in downward development has been reluctant to get underway. While bears’ hopes are not yet threatened, shorter term focus has turned to certain overhead resistance levels.
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Thursday, March 17, 2011
Why the Yen Should Become Stronger, Not Weaker, Japan Government Faces Debt Crisis / Currencies / Japanese Yen
By: ECR_Research
Renate van Ginderen writes: Japan’s Economics Minister Kaoru Yosano stressed that damage from last week's devastating earth quake and tsunami to the country's economy would be limited. However, what he did not mention was that the adverse effects from damaged nuclear plants are likely to be much bigger.
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Wednesday, March 16, 2011
ECB Peripheral Divergence and EUR/USD / Currencies / Euro
By: Ashraf_Laidi
The primary reason for the currency's stabilization earlier this year and the subsequent 10% rally from early Jan was the ECB's hawkish rhetoric in the face of rising inflation. 2.4% annual inflation was a sufficiently good reason for the ECB to make a hawkish twist, especially as it underwent the awkward task of having to buy Irish and Portuguese bonds, while preaching monetary discipline and price stability. Bernanke's constant reiterations to maintain QE2 into June did not help the US dollar and neither did the low-volume surge in global equities to fresh 2 ½ year highs.
Wednesday, March 16, 2011
How to Play the Japan Post-Disaster Currency Moves / Currencies / Forex Trading
By: Money_Morning
Keith Fitz-Gerald writes:
According to Biriniyi Associates, investors threw more than $1 billion into Japanese exchange-traded funds (ETFs) last month - second only to U.S. energy funds and more than agriculture, large-caps and mid-cap stocks combined.
They couldn't have placed their bets at a worse time.
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Sunday, March 13, 2011
Time to Bet on a RISING U.S. Dollar? / Currencies / US Dollar
By: DailyWealth
Dr. Steve Sjuggerud writes: You hear it over and over...
"Because of all the debts and the deficits, the dollar is about to crash."
Friday, March 11, 2011
Currency Investing: Where to Turn When the Dollar, Euro and British Pound Let You Down / Currencies / Investing 2011
By: Money_Morning
Martin Hutchinson writes:
Currency investing is something of hustler's shell game right now. No matter which of the Big Three developed-market currencies you choose, you're setting yourself up to be swindled.
Here's how it works.
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Thursday, March 10, 2011
The U.S. Dollar’s Double Decline / Currencies / US Dollar
By: Dr_Jeff_Lewis
Even silver and gold bears realize that the dollar is in decline, but few realize the extent of such a decline and how massive shifts in capital flows in 2008 will affect the dollar in 2011.
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Tuesday, March 08, 2011
Underestimating Lots of Money / Currencies / Fiat Currency
By: Richard_Daughty
According to Harper's Index, the "estimated value of Chinese household income that goes unreported is $1.4 trillion."
To put it in perspective, the follow-up item is "Portion of China's GDP this represents: 1/3."
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Tuesday, March 08, 2011
U.S. Dollar Long-term Chart / Currencies / US Dollar
By: Jesse
The weakness with this US Dollar DX index is that it is highly weighted to the developed economies of Europe and Japan. As such it may not reflect erosion of dollar purchasing power vis a vis the BRICs, and external measures such as gold, oil, and silver. It may be masked by the mutual weakness of central banks all inflating their currencies in unison.
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Tuesday, March 08, 2011
Currency Risk in South America – Brazil and Argentina Inflation / Currencies / Inflation
By: David_Urban
Inflation is beginning to rear its head globally. Demand for commodities worldwide is on the rise causing shortages and riots as countries attempt to deal with the problems associated with population growth and a rising, educated middle class. Regime changes across the MENA region are adding additional risk factors to the equation.
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Tuesday, March 08, 2011
Crude Oil and Gold Prices Surge as Speculators Bet Billions Shorting the U.S. Dollar / Currencies / US Dollar
By: Money_Morning
Kerri Shannon writes: Oil reached a 29-month high (yesterday) Monday morning in London and gold hit an intraday record as investors sought to hedge against inflation and traders bet billions shorting the dollar.
Brent crude futures contracts in London gained 0.1% yesterday to close at $116.11 a barrel, pushed higher by the Middle East crisis disrupting the oil supply. Crude for April delivery was up 0.9% to $105.36 in Monday afternoon trading on the New York Mercantile Exchange (NYMEX).
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Monday, March 07, 2011
U.S. Dollar Index at High Risk of Unraveling / Currencies / US Dollar
By: Guy_Lerner
I am sure that you are aware that the Dollar Index can't get a bid. This isn't news but a fact. The Dollar Index is in a down trend, and the question to ponder is: how low can it go? Looking at the price patterns, I believe the Dollar is at significant risk of unraveling.
Thursday, March 03, 2011
Euro Nears $1.40 as Global Tensions Soften / Currencies / Euro
By: LiveCharts
Major financial markets are reacting early Thursday (March 3) morning to word from the Arab League that it is seeking ways to end the crisis in Libya.
Heightened revolution and political tension in the Middle East has dominated global news during the last few months. It has also impacted speculation in many investment markets.
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