Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Saturday, February 12, 2011
U.S. Dollar Gains on Global Political Uncertainty / Currencies / US Dollar
By: LiveCharts
It is a amazing that despite some improving signs on the domestic economy, it is developments in Egypt that have helped prop up the dollar in early Friday (February 11) currency trade.
Egyptian President Hosni Mubarak has once again refused demands that he step down in lieu of a political uprising in the country. The uncertainty surrounding developments in Egypt have weighed on global equities, but the greenback has made a slight comeback.
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Tuesday, February 08, 2011
Which Currency Will Crash First? / Currencies / Euro
By: Rosanne_Lim
2010 was an exciting year for currencies. The dollar, euro, the yen, and the yuan all went under the spotlight. Except for the yuan, each experienced drastic swings wrought about by internal or external factors. But overall, these events underwhelmed confidence in paper money. The main reason is because of the sovereign debt crisis that swept the world.
Most of the developed nations including the United States, Japan, and a number of European countries have unsustainable debt. The US and Japan, for example, are heading towards insolvency. Meanwhile, the only reason why several countries in the EU haven’t defaulted is the bail-out by stronger EU members.
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Friday, February 04, 2011
Food Prices Aren't Rising, Fiat Currencies Are Collapsing, Massive Monetary Inflation / Currencies / Fiat Currency
By: Jeff_Berwick
It has been a most interesting month of January. A likely presage to an interesting year to come.
In these pages we have spoken often about what will be the first real domino to fall in causing a chain reaction ending up in massive global political and financial change. Often we follow our predictions with a statement something along the lines of, “but, in actuality, the defining primary event will likely come from somewhere that no one expects”.
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Thursday, February 03, 2011
The U.S. Dollar Index, How Low Can You Go? / Currencies / US Dollar
By: Guy_Lerner
When looking at the Dollar Index, I am reminded of the song the "Cha Cha Slide"when the performer says, "How low can you go?" There is no question investors believe that the Dollar is going down and that equities are only going up all courtesy of Federal Reserve Chairman Bernanke and his QE 2 policy. Yesterday's rally in equities and concurrent drop in the Dollar served to remind me of the fact that currency devaluation and increasing liquidity remain the drivers for equities. It has been that way since 2007, and why should it stop now? For the record, the Dollar Index was down a hefty 0.86% yesterday while stocks enjoyed a strong trend day.
Wednesday, February 02, 2011
New China Yuan Policy Presents Investors with the "Trade of the Century" / Currencies / China Currency Yuan
By: Money_Morning
Keith Fitz-Gerald writes:
When the state-owned Bank of China Ltd. (BOC) recently announced that it would begin allowing U.S.-based customers to trade the Chinese yuan here, it represented the biggest step yet in China's ongoing campaign to build global acceptance for its currency.
That desire to boost interest in the yuan in the global currency and trade markets is bolstered by the fact that Beijing's foreign-exchange reserves have now reached a staggering $2.8 trillion.
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Monday, January 31, 2011
Swiss Franc … CHFUSD / Currencies / Forex Trading
By: Tony_Caldaro
We have been tracking on stockcharts eight currencies now for a few years: AUD, CAD, CHF, EUR, GBP, JPY, USD and the ZAR. The charts we offer are all in relation to the USD, and we track the DXY index for the USD. Some time ago we expanded our long term time cycle analysis to include currencies. We have posted about this 34 year secular cycle in the past, and some of its components.
Sunday, January 30, 2011
Why Japan Needs a Weaker Yen, and How You Can Play It / Currencies / Euro
By: Bryan_Rich
Standard & Poor’s downgraded Japan’s sovereign debt rating this week. It was the first cut in Japan’s rating in nine years. Japan now joins Greece, Ireland, Portugal, Spain — all of which have been downgraded in the past twelve months; hardly the kind of company a country wants to keep.
I’ve said many times that in a world mired in debt and deficits, it’s only a matter of time until Japan has its turn under the spotlight of global scrutiny. And with this downgrade, it could be sooner rather than later.
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Friday, January 28, 2011
Could Bernanke Spark a Run on the U.S. Dollar? / Currencies / US Dollar
By: Mike_Whitney
Treasury yields are "blinking red", but the Fed keeps acting like nothing's wrong. What's the deal?
Let's explain: Fed chairman Ben Bernanke's bond purchasing program (QE2) has sent the yield on the 30-year Treasury skyrocketing. At the same time, the the 2-year Treasury is stuck at a lowly 0.61. That means, the "yield curve" between the two bonds has grown steeper, which normally happens at the beginning of a recovery because investors are moving out of "risk free" bonds to riskier assets like stocks. Typically, the yield on the long-term bond will start to go down on its own because investors expect the Fed to raise short-term rates to curb potential inflation. But that's not happening this time. Why? And why should we care?
Friday, January 28, 2011
More EUR/CHF Recovery Needed to Cast Bear Doubts / Currencies / Forex Trading
By: Seven_Days_Ahead
The chart of the EUR/CHF cross remains weak, with previous recovery attempts only proving short-lived affairs. At present the current bounce is relatively unexciting, but we are looking at certain overhead levels that, if breached, could signal better bull interest.
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Wednesday, January 26, 2011
China Plays Europe Card, Ramifications of Chinese Dollar Swap Facility / Currencies / Euro
By: Jim_Willie_CB
Whether Americans and Westerners in general like it or not, the Chinese have become and will remain the key drivers to many economic and financial market developments, progress, and averted wreckage. The intrepid lapdog US press, loyal to the syndicate, is a critical element to maintain distractions. Of course, China must adapt and react to their own stumbles and accidents, assured since for years they have maintained a tight link in monetary policy. Doing so has linked their asset bubble expansion and bust cycle to the deadly one in the United States, and filled their coffers with US$-denominated toxic debt securities.
Monday, January 24, 2011
Euro's Reversal of Fortune & Outlook / Currencies / Euro
By: Dian_L_Chu
The Euro closed up Friday`s session at 136.13, and looks poised to make a run up to test the 140 level in February. I, among many, was thinking the Euro would next test the 125 level, and things started heading well in that direction with the Euro moving down to 129, and appearing on a downward slope.
So what happened? Well, there have been quite a few new developments that prompted this reversal of the euro fortune.
Friday, January 21, 2011
European Debt Crisis: How to Profit No Matter What Happens / Currencies / Euro
By: Money_Morning
Shah Gilani writes:
Since the European debt crisis first emerged in early 2010, it has dominated headlines, roiled the world financial markets, and has kept investors in a perpetual state of alert as they wait for the next shoe to drop.
But let me share with you a little-known secret: Investors who understand where the "fault lines" are forming in this Eurozone debacle can transform the biggest sovereign-debt crisis in years into a major profit opportunity.
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Friday, January 21, 2011
GBP/JPY Bulls Trying to Gain Control / Currencies / British Pound
By: Seven_Days_Ahead
Price action in the GBP/JPY cross was relatively subdued in the second half of 2010, although staying on the weak side. A recent bounce has again raised the prospect of a better recovery phase, but key resistance still needs to be overcome.
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Friday, January 21, 2011
Can Sterling’s Strength Continue? / Currencies / British Pound
By: Seven_Days_Ahead
We have argued over recent months in the Macro Trader’s guide that Sterling was oversold during the financial crisis and subsequent recession. We judged the UK economy fared no better or worse than most other leading developed economies.
Thursday, January 20, 2011
Plans to Save the Doomed U.S. Dollar / Currencies / US Dollar
By: Mac_Slavo
Reuters’ Emily Flitter asks in a recent column What is Plan B if China dumps its U.S. debt?
Read full article... Read full article...It is worth asking about U.S. officials’ Plan B just in case one day relations take a surprise turn for the worse and Beijing dumps its holdings of U.S. treasuries.
Wednesday, January 19, 2011
U.S. Dollar, AUD, CAD, Euro Forecast Update / Currencies / Forex Trading
By: David_Petch
Right now, markets are extremely choppy, with the correction in gold stocks, particularly the HUI correcting back to the 490-500 area. From a quick glance of charts, the S&P 500 index and XOI remain in definitive uptrends, while the HUI has pulled back. There is really no change in the technical picture at present...the bubble the FED blew is still growing and will continue to expand until the surface tension of the bubble exceeds the capacity to remain intact and then it will burst. Energy prices are still set to rise, which in turn will raise the cost of every item transported and drive up precious metals. We are in the last two years of the current government term in the US and historically, they have been favourable to the stock markets. Beyond the last half of 2012 and into 2014, things are going to get really ugly. Another deflationary scare will likely occur during this period which will bring down most commodities and markets. After 2014, interest rates are likely to soar as bond holders are going to demand a higher rate of return when it becomes obvious that inflation is well above the stated levels.
Tuesday, January 18, 2011
Global Currency War: How to Keep the "Race to the Bottom" From Stealing Our Future / Currencies / Fiat Currency
By: Money_Morning
Martin Hutchinson writes:
When Brazil Finance Minister Guido Mantega recently warned of a "currency war that is turning into a trade war," he wasn't far off the mark - at least as far as Latin America is concerned.
In that region - in the last two weeks alone - at least three countries have taken steps to prevent their currencies from appreciating against the U.S. dollar.
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Tuesday, January 18, 2011
A Temporary Lifeline for the U.S. Dollar 2011 / Currencies / US Dollar
By: Q1_Publishing
2011 is set to be the year of the dollar’s rebound.At first glance, the dollar shouldn’t be on the rise. Official unemployment is stuck at near 10%. Dozens of municipal governments are set to fall into bankruptcy this year. The federal budget deficit is over $1 trillion. The Fed has signaled its intention to monetize more debt.
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Tuesday, January 18, 2011
Surge in Euro, Weakness in Gold and patterned drop in Aussie Dollar / Currencies / Forex Trading
By: Bari_Baig
The Surge in Euro: Last week was not green backs and regardless of it weakening “materially” it was against Euro where it performed the worst! Many would perhaps think that our reiterated call of Euro bear might have been wrong as on Jan 5th in our article [Euro took a beating yesterday and a bad one! Whereas Greenback doesn’t seem as strong as how the street is portraying it to be] we seemed to be leaning towards the fact that Euro would push higher and Green back would weaken.
Monday, January 17, 2011
Why Hold Dollars if the Fed is Going to Intentionally Deflate Their Value? / Currencies / US Dollar
By: Ned_W_Schmidt
As everyone seems to know, and as you have read endlessly in innumerable reports, the Federal Reserve has expanded its balance sheet by more than two trillion dollars. At present is in the process of adding another six hundred billion dollars of assets by monetizing U.S. government debt. At the same time, Obama Regime's deficit has spiraled out of control. Correctly measured, that deficit for the past year was $1.7 trillion.