Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Wednesday, September 07, 2011
The Swiss Franc Ties Itself To The Collapsing Euro in Double Suicide / Currencies / Fiat Currency
By: Jeff_Berwick
These are grand times to be dollar vigilantes.
The whole premise of being a dollar vigilante is the acknowledgement that the entire global financial system is an artificial and oppressive system that is nearing the end of its road (and purchasing hard assets and internationalizing our assets to protect ourselves).
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Friday, September 02, 2011
If you Debase the U.S. Dollar, you Debase them all… / Currencies / Fiat Currency
By: Aftab_Singh
Praise the deposit. If only one thing in this world is to be guaranteed, let it be the holy financial instrument that is the commercial bank deposit. — Prayer 3:23, The Book of State-Banking
In recent years, the above prayer has been answered by the oh-so-benevolent monetary authorities of the West — we were ‘saved’ by the self-sacrificial debauchery of Western central banks. Alas, the commercial banker that owed what wasn’t his’n, wasn’t faced with the unappetizing prospect of buying it back or going to pris’n! Consequently, the question that repeatedly presents itself is: ‘Who got stiffed then?’
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Thursday, September 01, 2011
Threats to the U.S. Dollar, Illusion Of Stable Currency Vortex / Currencies / US Dollar
By: Jim_Willie_CB
The Jackson Hole Conference was a dud. To the astute student observer, something happened never seen before. The US central bank chief admitted failure, if only people could properly interpret and translate his words of helplessness and disappointment. A more apt description was that USFed Chairman Bernanke used the forum to announce on stage that the central bank failed and is powerless to react to the current lapse into recession. Many watchers no longer believe that a Quantitative Easing chapter #3 will be announced. Surely it will come sooner or later. Watch the USTreasury auctions for the best clue. The QE2 program was about prevention of auction failure, not economic stimulus. A quick review of monetary policy and its effect is horrifying for its utter complete failure.
Tuesday, August 30, 2011
Why the Euro is Not a Good Short / Currencies / Euro
By: Capital3X
No matter how bad the situation in EU zone is, the current price action is speaking a different language. Euro is not a good short at these levels. On the contrary, EUR/USD and EUR/GBP are building up a tremendous consolidation last seen probably in 2007. We know what happened then as it broke away to hit all time highs at 1.62. We are not saying it will do so now but the case to do so exists.
Wednesday, August 24, 2011
Money Printing, Debt, Dollar Vs Euro / Currencies / US Dollar
By: Axel_Merk
A key reason for recent market turmoil may be the long overdue untangling of important debt-driven interdependencies between the U.S. and Europe. In our analysis, not only has the Federal Reserve’s (Fed’s) ultra-low monetary policy taken away any incentive to engage in meaningful reform in the U.S., but the easy money also spilled far beyond U.S. shores, providing European banks with hundreds of billions of reasons not to shore up their capital bases. With volatility riding high, investors appear to be chasing emotions rather than facts; let’s take a step back, and in an effort to understand where the Fed, the U.S. dollar and the euro might be heading next, let’s focus on facts rather than emotion.
Wednesday, August 24, 2011
The Floating Exchange Rate System / Currencies / Fiat Currency
By: George_Maniere
In 1953, renowned economist Milton Freidman was the first man to propose the “floating exchange rate system.” In 1971 it became a reality as then President Nixon was trying to open trade with China. Friedman saw the floating exchange rate system as a way to even the playing field for the fortunes of every nation. Sadly, I see that the bigger governments have tried to obfuscate the free market trade as they want the whole pie for themselves.
Wednesday, August 24, 2011
Currency Collapse - Where Now ? / Currencies / Fiat Currency
By: Andrew_McKillop
One thing is sure and certain. Permanent avoidance of economic, financial and monetary reality has resulted in the USA, European Union and Japan facing unmanageable and self-reinforcing debt spirals that - logically - should lead to currency collapse. By political decision, the "only solution" is to decree harsh austerity plans cutting economic growth and government tax revenues, and paper over the problem with massive amounts of newly printed currency. The only logical result is a stampede into gold and other precious metals. Occasionally, and without conviction, there will be a partial selloff in gold and some dip buying of eroding and fragile equities.
Tuesday, August 23, 2011
U.S. Dollar, the Mother of all Mathemagical Derivatives / Currencies / US Dollar
By: Aftab_Singh
We all think we know the story of the recent ‘bubble in credit’. As the explanation goes; Americans took on too much debt, those debts were ‘packaged up’ into complex financial instruments, those instruments were then bought, sold and ‘re-packaged’ by people who didn’t even understand them, blah blah blah… Even with this cursory and boringly consensual view of recent history, at least people have figured out that they shouldn’t blindly trust the mathemagicians… or have they? Here I ask; what about the king of all derivatives; the one that deviously subsumes all others? Indeed, what about the derivative that even derivative traders assume to be axiomatically fundamental and distinctly not derived?
Sunday, August 21, 2011
Fiat Paper Currencies Finally Redeemed for Gold / Currencies / Fiat Currency
By: John_Browne
The basic unwillingness of politicians to face economic and financial realities has caused the United States and European Union to face currency collapse. The politicians are content literally to paper over the problem with massive amounts of newly printed currency. This means that savvy investors, facing major real losses, are turning increasingly to gold. In essence, even though currencies are no longer on a gold standard, they are increasingly being "redeemed" for gold in the marketplace.
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Friday, August 19, 2011
Temporary Halt Seen in USD/CHF's Slide / Currencies / Forex Trading
By: Seven_Days_Ahead
USD/CHF has been grinding lower through 2011 and recently the pace accelerated. A s/term halt and sharp rebound has followed, but at the moment this could only be temporary.
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Tuesday, August 16, 2011
Downward Pressure Builds Again for the US Dollar / Currencies / US Dollar
By: Donald_W_Dony
The 'safe haven' status of the US dollar maybe coming to an end. Normally during times of market corrections, traders run to the American currency for protection. However, during the early August market drop, the big dollar barely moved. Though T-Bill auctions were well bid, there was little increase in demand for the greenback.
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Tuesday, August 16, 2011
Time to Buy the U.S. Dollar? / Currencies / US Dollar
By: Tony_Caldaro
We last reviewed the currencies in early July: http://caldaro.wordpress.com/2011/07/04/foreign-currency-and-usd-update/. Since then, it appears, a lot has changed. The world’s equity markets have entered bear markets, US Bonds have been soaring, commodities have generally weakened, Gold has been making all time new highs, and the Swiss Franc (CHFUSD) has gone parabolic.
Monday, August 15, 2011
UnHappy 40th Birthday for Fiat U.S. Dollar / Currencies / US Dollar
By: Jeff_Berwick
August 15 marks the 40th birthday of the Federal Reserve Note as a completely fiat currency.
On that date, on August 15, 1971, Richard Nixon commandeered the airwaves to announce the closing of the gold window. According to him, this was necessary to protect the US dollar from attacks from the "international money speculators'.
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Monday, August 15, 2011
Swiss Government Bluffing on Swiss Franc Currency Target? / Currencies / Fiat Currency
By: Mike_Shedlock
Bloomberg reports Franc Weakens Against Dollar, Euro After Report Currency Target Discussed
Read full article... Read full article...The franc weakened after SonntagsZeitung reported over the weekend that the Swiss government and the central bank are in “intense” talks over setting a possible target for the currency, citing unidentified people close to the situation.
Friday, August 12, 2011
Beginning of the End of the Current Fiat Monetary System / Currencies / Fiat Currency
By: David_Galland
David Galland, Managing Director Casey Research writes: I am beginning to feel a bit like one of the French unfortunates stumbling through the fog in the Ardennes, circa 1914. Except that, instead of Germans full of deadly intent coming at me in the gloomy forest, it is a flock of black swans.
As it was for the French in the Ardennes, the number of problems - then Germans, now black swans - is becoming overwhelming.
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Friday, August 12, 2011
Can Revulsion with the Federal Reserve Note be Sustained over the Weeks and Months Ahead? / Currencies / US Dollar
By: Aftab_Singh
We seem to have reached an intermediate-term extreme in revulsion for the Federal Reserve note. It seems to us that the status quo of the currency markets is highly dependent on the Federal Reserve accommodating the market’s perception of it. Here, I present the usual Federal Reserve balance sheet charts and briefly outline why we continue to anticipate a short-term rally in the dollar.
Friday, August 12, 2011
Pullback In AUD/USD Hits Key Support Area / Currencies / Forex Trading
By: Seven_Days_Ahead
After reaching a target on the long term chart AUD/USD has pulled back smartly, testing a pivotal Fibonacci support area. Bears will strengthen their ranks on a break of this.
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Wednesday, August 10, 2011
Irredeemable Fiat Currencies, The Ever-Changing Means of Mr Doubter… / Currencies / Fiat Currency
By: Aftab_Singh
Mr Doubter, otherwise known as the child who pointed out the Emperor’s lack of clothes, has always played a key role in monetary affairs. However, the tools with which he has done his doubting have evolved over time. Here, I detail the means by which alert speculators have questioned the currency systems of the past, and the means by which they question the irredeemable fiat currency systems of today.
Wednesday, August 10, 2011
Swiss Franc Safe Haven Becoming Dangerous? / Currencies / Forex Trading
By: Willem_Weytjens
You have probably read it many times the last couple of days: People are rushing into safe havens such as Gold, the Swiss Franc and the Japanese Yen. When the mass is doing something, we pay attention. We get cautious. We know that if you follow the mass, you will burn your hands. Therefore, we analyzed those so-called safe havens in this article.
Sunday, August 07, 2011
U.S. Economy Saved by a Trillion-Dollar Coin? / Currencies / Fiat Currency
By: Robert_Murphy
Now that the "crisis" over the federal debt ceiling has been averted, we can leisurely explore two of the wackier proposals that emerged during the state of panic. Not surprisingly, the schemes involved the Federal Reserve and its ability to circumvent, not just standard accounting, but also the traditional divisions of political power. It's worth studying the episode carefully because we will probably see one or more of these "solutions" promoted as the only answer to another crisis in the not-too-distant future.