Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Friday, October 24, 2008
British Pound Biggest Crash Since 1971 and USD/JPY Cycles / Currencies / Forex Trading
By: Ashraf_Laidi
Sterling collapses by over 800 points (8 cents) to $1.5260, posting its biggest intraday decline since exchange rates became freely floated in 1971, reinforced by a bigger than expected 0.5% q/q decline in UK Q3 GDP, and a 0.3% y/y rise, versus expectations of a 0.2% q/q decline and below expectations. EURs decline vs USD is not as pronounced as GBP, hence the prolonged spike in EURGBP to a 2-month high of 81.00 pence from Wednesdays 77.5 pence. World equity markets are in virtual free fall, with trading on S&P500 mini contracts suspended for reaching limit down. Read full article... Read full article...
Friday, October 24, 2008
U.S. Dollar Currency Collapse Within 30 Days / Currencies / US Dollar
By: Eric_deCarbonnel
It appears that there is a common refrain going around the investment community. It goes something like this:
"Gold should be doing better, and, since it isn't, I am not going to buy it"
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Thursday, October 23, 2008
The U.S. Dollar Death Dance / Currencies / US Dollar
By: Jim_Willie_CB
The US Dollar rally in the last several weeks has been remarkable. At closer examination, it highly resembles a spurt prior to death. Imagine an old man who just had a heart attack, lost feeling in certain body parts, his mind not working right, plenty of nonsense gibberish coming from his mouth, and now he is dancing hard on some last gasps. The vast liquidation movement is akin to the old man going through an embalming process while dancing atop the tables at the funeral parlor, as bidding proceeds for his cadaver. Read full article... Read full article...
Thursday, October 23, 2008
The Strong U.S. Dollar / Currencies / US Dollar
By: Adrian_Ash
"We're for a Strong Dollar" "There are more tears shed over answered prayers than over unanswered prayers..." – Teresa of Ávila, patron saint of headache sufferers
SO HANK PAULSON , Ben Bernanke and George W.Bush got their wish. The US Dollar is now the world's strongest currency.
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Wednesday, October 22, 2008
Europe Seeks to Implement New Bretton Woods Fiat Currency System / Currencies / Fiat Currency
By: Mick_Phoenix
Welcome to the Weekly Report. It looks like Europe wants to re-invent the wheel and soundings are being made to introduce a "new Bretton Woods".
Bretton Woods was effectively an exchange rate mechanism, were gold backed the new kid on the world block, namely the post war US dollar and all other currencies floated around the dollar in a fixed range. If a currency moved too far either way of the range then the respective Central Bank stepped in and delivered the appropriate medicine.
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Monday, October 20, 2008
Central Banks Scramble to Buy Dollars to Bolster Banking Systems / Currencies / US Dollar
By: John_Mauldin
The G-7 countries now have what amounts to access to the US Fed's window for dollars for their banks. But what of the rest of the world? Brad Setser, an analyst who writes a blog for the Council on Foreign Relations, ask some very interesting questions and points out some big holes in the world economic landscape. If you can't get dollars what does that do to your currency? This contributes to the rise in the dollar against some emerging market currencies. Setser asks: "Where is my swap line? And will the diffusion of financial power Balkanize the global response to a broadening crisis?" Read full article... Read full article...
Sunday, October 19, 2008
U.S. Highly Inflationary Monetary Growth Will Lead to Dollar Implosion / Currencies / US Dollar
By: Ned_W_Schmidt
In previous Dollar Death Ray we saw how size of U.S. Federal Reserve balance had exploded. That financial frenzy continues. In most recent report, Federal Reserves balance sheet, after appropriate adjustment, was 46% larger than a year ago. Most of that growth has come recently during bank bailout scheme. Rarely, if ever, has central bank of a major economy so lost control of its balance sheet, or monetary policy. That expansion of reserve bank credit is now feeding the growth of U.S. money supply, M-2. Read full article... Read full article...
Friday, October 17, 2008
USD/JPY Strategy and Yield Curve Analysis / Currencies / Forex Trading
By: Ashraf_Laidi
Violent volatility maintains its daily routine of aggressive swings, as US equities close 5% higher after more than a 9% decline yesterday, dragging risk appetite and currencies along with them. Wednesday's trading session saw a short-lived attempt for economic reports to reassert their dominance on financial markets before risk took over on Thursday. Market players were astounded by the fact that neither the 34-year lows in US industrial production, nor 18-year lows in the Philadelphia Fed index nor the record lows in the US National Association of Homebuilders' index dipping managed to bring down US stocks. Read full article... Read full article...
Tuesday, October 14, 2008
Financial Crisis is the Birth Pains of a New Currency / Currencies / Credit Crisis 2008
By: David_Vaughn
What can we say?
We are experiencing the most severe financial crisis since 1929. It hurts. There appears to be no relief in site. What began with mortgage defaults has now spread to the derivative markets.
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Monday, October 13, 2008
Currencies and Cotton Candy Interest Rate Cuts / Currencies / Financial Crash
By: Money_and_Markets
Jack Crooks writes: I understand that the lending system is in bad shape. Or more specifically, that it's barely functioning at all. We're well past the point when central banks and governments around the globe inexplicitly declared it their duty to save their economies. But they really unleashed their helping hands this week. Read full article... Read full article...
Wednesday, October 08, 2008
Interest Rate Cuts, Recapitalisation's, Japanese Yen becomes Hard Currency / Currencies / Credit Crisis Bailouts
By: Axel_Merk
Europe was all but written off on Tuesday when Gordon Brown, the UK prime minister announced late in the day that £50 billion (about $85 billion) may be injected into several of the biggest banks. The details known so far are that eligible banks can issue preference shares to the government; the Bank of England makes another £200 billion of liquidity available in the short-term markets; and a further £250 billion of government guarantees are issued to help banks in their funding needs. We have been arguing that recapitalizing banks is the most effective way to support financial institutions ( see our analysis of the $700 billion bailout package ). Read full article... Read full article...
Tuesday, October 07, 2008
Global Financial Crisis Safe Havens / Currencies / Credit Crisis 2008
By: Axel_Merk
We have been warning for some time that “there is no such thing as a safe asset anymore, you have to take a diversified approach to something as mundane as cash.” Unfortunately, the current crisis shows that we may be right. Physical gold is attractive to many investors because of its lack of counter party risk. The only counter party risk with gold held in your personal vault is that someone may break in and steal it. However, even staunch gold bugs rarely hold all their net worth in gold, but diversify if for no other reason that it is impractical to have essentially all your net worth in gold. And while gold is currently fulfilling its role as sound money, it often trades in tandem with other commodities; this can result in stomach-twisting volatility. As a result, many hold gold as insurance, but few truly live on their personal gold standard. Read full article... Read full article...
Monday, October 06, 2008
Credit Crisis Actions Risk Collapse of European Monetary Union / Currencies / Euro
By: John_Mauldin
Many of us in the US are focused on our own woes. But this is a global credit crisis. In today's Outside the Box, we take a look at the currency markets, which are in an historic upheaval and also look at what is going on in Europe. I suspect that Europe is in for a period of much distress, as the world begins to deleverage That is why one government after another will back the deposits of banks within their countries, for otherwise capital will flee to countries like Ireland and Germany which ARE guaranteeing the deposits for all banks in their borders. . Many European banks are leveraged 50 to 1 (not a misprint). I suspect that more government will do like Belgium and the Netherlands and inject capital directly into their local banks deemed too big to fail. Read full article... Read full article...
Monday, October 06, 2008
Euro and British Pound Come Crashing Down to Earth / Currencies / Credit Crisis 2008
By: Money_and_Markets
Jack Crooks writes: Don't look now, but the Eurozone and England are in big trouble.
Actually, you do need to look now because there's no point in turning your head away from what's driving global financial markets and more importantly ... currencies.
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Monday, October 06, 2008
European Banking Crisis Deepens as Germany Guarantees Savings / Currencies / Credit Crisis 2008
By: Mike_Shedlock
I am sure glad Paulson says the global financial system is sound. Otherwise I might be worried when I see reports like this: Financial Crisis: Germany guarantees all private savings; UK 'must follow'
The move to protect private bank account deposits in Europe's largest national economy came after similar moves in Ireland and Greece were widely criticised.
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Friday, October 03, 2008
US Dollar Doomed as Credit Crisis Turning into a Currency Crisis / Currencies / US Dollar
By: Jennifer_Barry
When the precious metals were smashed out of nowhere and the dollar started climbing this summer I became very worried. I didn't question my conviction that commodities are in a bull market, or that precious metals in particular are undervalued. I felt something sinister was at work. Neither move was justified on a fundamental level. I assumed that something very bad was about to happen and the metals needed to be brought lower in advance of the bad news. Read full article... Read full article...
Friday, October 03, 2008
US Dollar Death Ray Powered by Soaring Federal Reserve Bank Credit / Currencies / US Dollar
By: Ned_W_Schmidt
Dollar Death Ray , powered by the U.S. Treasury and the Federal Reserve, is aimed at the heart of the U.S. dollar. Forget the U.S. Congress debate of the Bank Bail Out and Congressional Reelection Bill of 2008. The Federal Reserve and U.S. Treasury, without a vote of Congress and support of the voters, has given $253 billion to banks in the past week. That is according to the Federal Reserve statement issued yesterday, 2 October. Without any regard for their actions, these two agencies are flooding the U.S. banking system with liquidity in an unprecedented manner. Read full article... Read full article...
Wednesday, October 01, 2008
Terrible ISM Economic Report Won't Prevent Euro and GBP Selling / Currencies / Futures Trading
By: Ashraf_Laidi
An important component in today's terrible August ISM report (plunging to a 6-year low of 43.5) is the tumbling prices paid component to 53.5 from 77.00, which is a wake up call for the Federal Reserve's misplaced inflation preoccupation, especially given the tumble in the employment index to 41.8 from 49.
Today's ISM report is not only recessionary, but also underlines the notion that "rescue packages" are merely confidence builders and by no means solutions to the deepening macroeconmic economic slump and the resulting financial market erosion. USDJPY seen extending losses towards 105.20. Despite these dismal US figures, we maintan our pessimism with the high yielding FX such as AUD, GBP (still seen at $1.76) and NZD. EUR eyes $1.3950.
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Tuesday, September 30, 2008
Don't Miss the Next Big US Dollar Move / Currencies / Forex Trading
By: INO
The US Dollar has been in a long-term bear market since 2001, having bottomed earlier this year in March at USD 71, the Dollar has since attempted to form a bottom up until the most recent price action.
The following video presents my dollar view for several months.
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Friday, September 26, 2008
US Dollar to be Hit by Federal Reserve Bank Credit Death Ray / Currencies / US Dollar
By: Ned_W_Schmidt
Our graph this week is of the Dollar Death Ray , which is aimed directly at the value of the U.S. dollar. This plot is an extension of that which was introduced in last week's Gold Thoughts . In the graph is plotted the year-to-year change in Federal Reserve bank credit. In simplest terms, it is the rate of expansion of the asset side of Federal Reserve's balance sheet. Latest data was released Thursday, 25 September. In this case, it has been adjusted for a circular transaction created by Treasury supplemental financing of the Federal Reserve which was recently done. Federal Reserve bank credit, or U.S. base money, has now been expanded at a record level. Rarely, if ever, has a major central bank intentionally inflated its balance sheet in such an inflationary manner.Read full article... Read full article...