Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Tuesday, February 03, 2015
The Short Story of Past Russian Financial Crises / Currencies / Russia
By: Arkadiusz_Sieron
In the last Market Overview we wrote about falling commodity prices and problems of emerging markets resulting from the strong U.S. dollar. In this edition we would like to focus on the Russian economy, which suffers from both problems. Declines in oil prices erase a great deal of government revenue, while at the same time the rise in the U.S. dollar to ruble exchange rate threatens the solvency of indebted banks and companies. Because Russia’s financial instability can affect other markets that lend money to Russian companies, we have to analyze what the wounded eastern bear could really mean to the global economy and gold market. Read full article... Read full article...
Monday, February 02, 2015
Say Goodbye to the “Strong Dollar Policy” / Currencies / US Dollar
By: Michael_Pento
It is absurd to believe that the inhabitants of the Eccles building in D.C. promote a strong dollar policy. Printing $3.8 trillion dollars and keeping interest rates at zero percent for going on the seventh year can hardly be confused with a hard-currency regime. Merely pretending to cheer the dollar higher appears to be the Fed’s method of operation.
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Monday, February 02, 2015
What Comes After Paper Money, Part 1: Fiat's Obvious Failure / Currencies / Fiat Currency
By: John_Rubino
Business Insider just posted a Deutsche Bank chart that illustrates the difference between life under the Classical Gold Standard and today's "modern" forms of money. It's for the UK only but is a pretty good representation of the world in general:
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Saturday, January 31, 2015
Swiss Franc’s Euro-Peg Post Mortem / Currencies / Fiat Currency
By: Frank_Shostak
On January 15, 2015 the Swiss National Bank (SNB) announced an end to its three-year-old cap of 1.20 franc per euro. (The SNB introduced the cap in September 2011.) The SNB has also reduced its policy interest rate to minus 0.75 percent from minus 0.25 percent. The Swiss franc appreciated as much as 41 percent to 0.8517 per euro following the announcement, the strongest level on record — it settled during the day at around 0.98 per euro
Thursday, January 29, 2015
The Raging Currency Wars Across Europe / Currencies / Currency War
By: Gary_Dorsch
The theater of the absurd became even more bizarre on Jan 22nd, when the European Central bank <ECB,> desperate to extract the Euro-zone’s economy from the quagmire of deflation and stagnation, decided it would try its hand at the magic elixir of “quantitative easing,” (Q€). Starting on March 1st, the ECB will inject €60-billion of liquidity into the Euro-zone’s money markets, each month until the end of Sept 2016. The ECB is the last of the Big-4 central banks to unleash the nuclear option of central banking – QE, - starting about six years after the Bank of England, the Bank of Japan, and the Fed began flooding the world markets with $7-trillion of British pounds, Japanese yen and US$’s.
Thursday, January 29, 2015
The End of Currency 'Safe-Havens' / Currencies / Fiat Currency
By: Julian_DW_Phillips
Swiss - Negative rates
In the past [even the recent past] investors have often 'parked' their funds in a 'safe-haven' currency, when fears about the dollar or other currencies rose. The leading candidates have always been the Swiss Franc and the Yen, with gold, in the last three years usually being excluded, because of its declining trend against the dollar and the limited amount of stock relative to the availability of these currencies. While gold's trend seems to have changed to the upside now, the developed world is still 'out of gold'.
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Wednesday, January 28, 2015
EUR, AUD, GBP USD – Invalidation of Breakdown / Currencies / Forex Trading
By: Nadia_Simmons
Earlier today, the U.S. Commerce Department showed that total durable goods orders dropped 3.4% last month, missing expectations for a gain of 0.5%, while core durable goods orders (without volatile transportation items) dropped by 0.8% in the previous month, disappointing forecasts for a 0.6% gain. Thanks to these numbers, AUD/USD extended gains, invalidating a breakdown below an important support level. Is it enough to trigger further rally?
Tuesday, January 27, 2015
Bitcoin Price Tense Days Ahead / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
The Winklevoss twins seem to be connected to everything about Bitcoin that has hit the media recently. This is an exaggeration but the brothers have been reported to be working on a new regulated Bitcoin exchange, on a Bitcoin ETF. It turned out that they were beaten to opening the first regulated exchange by Coinbase but the brothers seemed undeterred as they spoke with CNN Money:
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Tuesday, January 27, 2015
Gold And Silver - Around The FX World In Charts / Currencies / Forex Trading
By: Michael_Noonan
There has been some discussion about how the Swiss National Bank breakaway from the 1.20 peg to the Euro was a shot to the upside for gold. It appeared to us that the rally may have been sparked a few days ahead of the announcement, and last week's mostly sideways aftermath was the froth on the rally. It may continue, but the narrower range could just as well lead to a pullback, discussed in last article, Timing Is The Most Important Element, [paragraph above each weekly chart of silver and gold].
It made sense to compare the leading currency charts on the Foreign Exchange markets [FX], to see a) does a correlation exist, and b) take an overview of a market we rarely visit. As the SNB decision to make an apparent[?] independent break from the rest of the central banks, the risk exposure in trading in the bank-[rigged]-dominated FX markets is far greater than any occasional rewards.
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Saturday, January 24, 2015
Safe Haven 101 For Investors Concerned About the Future / Currencies / Fiat Currency
By: Ron_Holland
Dictionaries broadly define a safe haven as a place of refuge or sanctuary. I'm using the term to describe a hoped for place of security if a future catastrophe should take place. Possibilities include a major natural disaster, the coming end of the forced petrodollar scam, an unexpected major new war or civil disruption as the United States makes the always difficult transformation from leading world empire to a has-been nation heading downward on the stage of world history.
This has happened to all great empires that have gone this way before the Washington Empire and will eventually happen to all future global empires. It is the nature of all aggressive empires to overreach politically and militarily as well as in the economic sphere.
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Saturday, January 24, 2015
U.S. Dollar Denial Ain't Just a River / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
Safe to say, with oil cut in half, precious metals prices contained below $20, and both housing and equities booming on little to no real economic growth, we are at peak ignorance in terms of monetary understanding. This cannot end well.
And yet for many who see the injustice, the inequality, or have dared witness the raping of justice on the way to this perception, the blame is too often misplaced. The sad reality is that those who are left to think about it come to the conclusion that the problem is capitalism - that more of the same should be implemented.
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Thursday, January 22, 2015
The U.S. Dollar Has Peaked / Currencies / US Dollar
By: DailyWealth
Dr. Steve Sjuggerud writes: "Today may be the very top in the U.S. dollar," I told Liz Claman on Fox Business' "Countdown to the Closing Bell" last Friday.
The U.S. dollar has soared over the last several months. And it has now become a crowded trade. I told Liz that no one expects the dollar to fall today... but that's what I'm betting on.
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Wednesday, January 21, 2015
China's Yuan Enters the Currency "Big Leagues" to Take on the Dollar / Currencies / China Currency Yuan
By: Money_Morning
Peter Krauth writes: I've been following one of the biggest "stealth" stories of the year: the rise of China's yuan as it gears up to take its place on the world stage.
Towards this very goal, China has taken steady, calculated steps for some time.
It's also no secret that China and Russia have a "special relationship" that will drive this trend.
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Wednesday, January 21, 2015
The Swiss will not have more EU QE / Currencies / Fiat Currency
By: BATR
In the ridiculous charade that passes for the foreign exchange currency markets, the ease upon which a 39% spike in the Swiss Franc to the EU has most financial journalist puzzled. A flagship of establishment journalism like the Washington Post provides a quaint explanation in Why Switzerland’s currency is going historically crazy. The Swiss intend to keep their exchange rate at 1.2 Swiss francs per euro caused unsustainable negative competiveness in Swiss exports to EU customers. How many times have you heard that same old song? Corporatist media consistently spins a yarn that suppressing one’s own currency is good for business.
Tuesday, January 20, 2015
Switzerland Wins As Its Central Bank Surrenders / Currencies / Fiat Currency
By: Peter_Schiff
If anyone had any doubt how severely the global economy has been distorted by the actions of central bankers, the "surprise" announcement last week by the Swiss National Bank (SNB) to no longer peg the Swiss franc to the euro should provide a moment of crystal clarity. The decision sent the franc up almost 30% in intraday trading, a scale of movement that is unprecedented for a major currency in the modern era. Although very few in the media or on Wall Street fully understand the ramifications, the situation that forced the Swiss to abandon the peg will soon be faced by bankers of much larger countries in the coming years, the implications of which can have more profound implications for global financial markets.
Tuesday, January 20, 2015
Bitcoin Price Still in a Bearish Environment / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
The price of Bitcoin is not all that matters in the Bitcoin community. Developments in the protocol and particularly in the ease-of-use and security departments are extremely important, in our opinion, for the success of the cryptocurrency. A new feature for the Bitcoin system, called Bitcoin Box, has recently come out. This is a kind of terminal that allows to process Bitcoin transaction without the access to the Internet, we read on CoinDesk:
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Tuesday, January 20, 2015
The Swiss Release the Kraken! / Currencies / Fiat Currency
By: John_Mauldin
“Below the thunders of the upper deep,
Far far beneath in the abysmal sea,
His ancient, dreamless, uninvaded sleep
The Kraken sleepeth: faintest sunlights flee….
“There hath he lain for ages, and will lie
Battening upon huge sea-worms in his sleep,
Until the latter fire shall heat the deep;
Then once by man and angels to be seen,
In roaring he shall rise and on the surface die.”
Saturday, January 17, 2015
Switzerland Frees the Swiss Franc / Currencies / Fiat Currency
By: Frank_Hollenbeck
You can fix your currency or you run independent monetary policy. But you cannot do both at the same time. In spectacular fashion, the Swiss government finally capitulated and decided control over the money supply was more important than a fixed rate against the euro. The Swiss franc rocketed up 30 percent in value minutes after the central bank’s decision to let the currency float.
Thursday, January 15, 2015
What About the Russian Ruble? / Currencies / Russia
By: Steve_H_Hanke
The Russian ruble ended 2014 in bad shape. Not as bad as the Ukrainian hryvnia or the Venezuelan bolivar, but bad, nevertheless. For most of 2014, Russia faced an ever-increasing ratcheting up of economic sanctions. These set the stage for what was to come late in the year: the collapse of oil prices and the announcement on November 10th that the ruble would be allowed to float. When combined, these three ingredients created a perfect storm.
Wednesday, January 14, 2015
Bitcoin Price Pause in the Decline Might Be Close / Currencies / Bitcoin
By: Mike_McAra
In short: no speculative positions.
Another slide in the price of Bitcoin, another day of more negative news on the cryptocurrency. Quite interestingly, we saw the "Bitcoin crash" news on the main page of the New York Times' Dealbook. The article "As Bitcoin's Price Slides, Signs of a Squeeze" also made it into the "Most Viewed" section of the website. In the piece, we read:
Read full article... Read full article...The price of Bitcoin slid further on Tuesday, dipping to its lowest level since the spring of 2013. The downward spiral, which began early last year, suggests that confidence in the virtual currency may be dwindling.