Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Monday, October 06, 2014
U.S. Dollar's Ride is About to End / Currencies / US Dollar
Under the stewardship of Shinzo Abe, the nation of Japan has become a global leader in debt, currency devaluation and inflation. Unfortunately for the Japanese, Abenomics is also leading Japan into a hyperinflationary depression, as the first of his three arrows has shot right through the yen and put a gaping hole in the wallets of every Japanese citizen.
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Monday, October 06, 2014
GBP Still Trading Under Pressure: Can This Continue? / Currencies / Forex Trading
Dollar strength continues to dominate, so if there is any way to characterize the overall behavior in forex markets for the final portion of the summer, it would be done using the pronounced bullish moves that have been see against the Euro and Pound. Most of this positive activity in the greenback has been supported by risk aversion and geopolitical tensions (which were present in several major economic regions around the world). This sent the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP) to new highs, and this strength came at the expense of both the Euro and British Pound (GBP), which are both trading at some of their lowest levels of the year.
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Monday, October 06, 2014
GBPUSD and EURAUD Elliott Wave Analysis / Currencies / Forex Trading
No change on GBPUSD; the pair is still showing a very interesting and clear bearish pattern that is pointing lower, into wave v) of (iii). On the upside price meets resistance at 1.6000 and 1.6030/50.
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Monday, October 06, 2014
Cerulean Dollars - Go Deep or Go Home / Currencies / Fiat Currency
“We have deep depth.”-Yoga BerraThe dollar institution is much larger than the Fed, the Treasury or the entire basket of FOREX that derives relative values of backless currencies.
Market action makes market commentary. Few question price discovery -- instead they spend precious time trying to make the fundamentals fit the price. A backwards endeavour. We need to go deeper.
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Monday, October 06, 2014
Bitcoin Ebola GFC ISIS: Phase Two is Begun / Currencies / Bitcoin
The cryptographic-currency phenomenon is characterised by a binary that is little mentioned beyond the crypto-sphere. The binary is 'libertarian-commercial.'Thesis:
if, as seems increasingly likely, the world economy becomes significantly destabilised, the balance between libertarian and commercial crypto-use will shift significantly towards the libertarian.
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Monday, October 06, 2014
The Soaring U.S. Dollar Debate: Good, Bad, Ugly / Currencies / US Dollar
The dollar is on a tear. And the world is scrambling to figure out what it means.
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Friday, October 03, 2014
The Velocity of Money Myth… / Currencies / Money Supply
If there is one concept that illustrates the difference between a top-down macro-economic approach and the reality of everyday life it is the velocity of circulation of money. Compare the following statements:
“The collapse in velocity is testament to the substantial misallocation of capital brought about by the easy money regimes of the past 20 years.” Broker’s research note issued September 2014; and
Wednesday, October 01, 2014
It’s Déjà Vu All Over Again as the Russian Ruble Crashes / Currencies / Russia
Dr. Kent Moors writes: Battered by sanctions, the Russian ruble has fallen to historic lows against the U.S. dollar.
The last time the ruble slid this far was in the late 1990′s when I was still writing for an inside market publication called Russia Crisis Watch during theRussian financial crisis.
Three times a week Crisis would document the “real” condition of the Russian economy, while providing market intelligence from a network inside and outside the country.
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Tuesday, September 30, 2014
US Dollar Cycle Analysis / Currencies / US Dollar
It seems nothing can stop the US Dollar. Since its low in April it has closed higher in four out of five months and is up almost 8.00% since then. While a run like that is in need of a rest there are some big issues that need to be considered now.
DXY broke out of a six-year triangle this month. Breaking to the upside from a triangle is bullish. That triangle is essentially a six-year base and should give DXY some serious "legs" for the future.
Sunday, September 28, 2014
Currency Wars and the Death of the Euro - Audio / Currencies / Euro
Jeff Deist and Patrick Barron discuss what's going on in the EU, how Germany in particular suffers from being yoked to the other Eurozone nations, and what the comeback of the Deutsche Mark might mean for Europe—and for America.
Patrick Barron is a private consultant in the banking industry. He teaches in the Graduate School of Banking at the University of Wisconsin, Madison, and teaches Austrian economics at the University of Iowa,
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Saturday, September 27, 2014
Bitcoin's Present Low Price? It's The Mining Thing / Currencies / Bitcoin
Forgive any repitition, readers. The situation has become much clearer.Brief background:
The China Thing ended on April 10 ($380). Bitcoin lifted by about 65% over the following weeks. Then it dropped a little. Then more. Then, a fortnight ago, it slipped back to $380, and has been puddling about at just over $400.
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Thursday, September 25, 2014
Potential Bounce in the Japanese Yen / Currencies / Japanese Yen
Brett Eversole writes: When the Prime Minister of Japan says he's going to debase the yen, it's hard to be on the opposite side of the trade...
Governments aren't good at a lot of things. But they are good at creating inflation and pummeling their currencies. And that's exactly what we're seeing in Japan today.
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Tuesday, September 23, 2014
A Post-Petrodollar Play for Triple-Digit Gains / Currencies / Fiat Currency
Peter Krauth writes: It's now clear as day that both Russia and China are making concerted efforts to move off the petrodollar system.
I've previously written about this petrodollar phenomenon as a developing trend.....
Well now it's no longer developing, it's in active mode.
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Tuesday, September 23, 2014
Destroying the U.S. Dollar a Penny at a Time / Currencies / US Dollar
Mike Finger writes: A recent article on the Wall Street Journal's blog draws attention to the high cost of producing a single penny - 1.6 cents each, to be exact. They blame this unsustainable price on the high cost of zinc, which makes up 97.5% of every American penny. The online publication Quartz ran with this story, giving it a new headline: "It costs 1.6 cents to make one penny because of the rising price of zinc". Time for a short economics lesson.
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Monday, September 22, 2014
U.S. Dollar: The Last Hurrah? / Currencies / US Dollar
End of empire is a difficult time for two groups, investors and patriots. A hundred years ago the U.S. took the economic baton from England to become the most important economy in the world. No doubt some loyalists refused to recognize the shift that was taking place. From then on the world began to denominate economic activity in U.S. dollars. Holding British pounds might have been the loyal thing to do, but it was not a wise investment decision. Today, a similar situation exists for the dollar. Dollar-based investors may now be facing the "last hurrah" for the dollar, and should not ignore that possibility.
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Monday, September 22, 2014
One Giant Cluster Ponzi / Currencies / Fiat Currency
“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”
-H. L. Mencken
Recently, The U.S. Treasury ramped up war games via financial sanctions aimed at Russia. The EU is part and parcel to the operation. These interventions are a continuation of the age old warfare referred to as the “currency wars”. Jim Rickards’ recent book on the topic chronicles the use of this tactic.
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Friday, September 19, 2014
Bitcoin Price Charts In-Depth Analysis / Currencies / Bitcoin
Bitcoin, the new digital currency, remains a mystery to many. There is no better way to lift the fog surrounding bitcoin than to let the data speak. And data speaks loudest through charts. Yes, topological analysis is often the best route to comprehension.
I have constructed -- with my assistant, Mazin Al-Rayes -- a series of charts that contain illuminating data about bitcoins and brief directions for use following each chart.
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Thursday, September 18, 2014
Global Currencies Analysis...The World According to Chartology / Currencies / Forex Trading
We've been looking at massive H&S patterns in the last two reports I've posted so you can get a feel for the bigger picture which is so important to grasp. It's always much easier to make money trading within the big trend. For instance if you've been trading the precious metals stocks over the last 3 years or so you have had a strong headwind blowing against your trades making it very difficult to make a decent profit and then hold on to those profits. If you're a short term trader and can catch the little swings up and down you at least have a chance but that to is very hard to do constantly. Knowing the direction of the big trend can bail an investor out if his timing is off but if you trade against the trend and your timing is off then you will pay dearly as the markets can be unforgiving.
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Tuesday, September 16, 2014
U.S. Dollar’s Turn to Cause a Recession / Currencies / US Dollar
Europe is an economic basket case while the US is kind-of sort-of recovering. Why? Several reasons, but the only one that really matters these days is that in 2012 and 2013 the eurozone operated with tight monetary policy and an appreciating currency while the US created new money with abandon and let the dollar fall. So US products got cheaper on global markets and US companies and consumers were able to borrow at more favorable rates. The result: relatively fast growth in the US and a descent into deflationary depression for the eurozone. Here’s the euro vs the dollar between early 2012 and early 2014:
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Tuesday, September 16, 2014
The Emergence of the US Petro-Dollar / Currencies / US Dollar
Trying to pick a profitable trade in the foreign exchange market is similar to judging a “reverse beauty” contest, that is to say, the winner is the least ugly currency at any given moment in time. All paper currencies are ugly, because central bankers print vast quantities of fiat currency, to varying degrees, at the behest of the ruling political elite that appointed them to run the printing presses. “By this means, government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft,” –the late British economist John Maynard Keynes, used to say.Read full article... Read full article...