Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Tuesday, February 19, 2013
The British Pound Gets Pounded / Currencies / British Pound
As the global currency war intensifies, the majority of attention has been paid to the 17% fall of the Japanese yen against the U.S. dollar over the past few months. The implosion has given cover to the sad performance of another once mighty currency: the British pound sterling. But in many ways the travails of the pound is far more instructive to those pondering the fate of the U.S. currency.
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Tuesday, February 19, 2013
Chinese Yaun to Take First Place from U.S. Dollar / Currencies / China Currency Yuan
Our headline came from the T-shirt of a young soccer player. Her opinion of coming in second in a tournament was quite clear. For her, getting a trophy for second place was the equivalent of getting the trophy for first loser. In soccer, no one wants to win second place. Same is true for currencies as being ranked in second place is indeed acknowledging one has become first loser.
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Friday, February 15, 2013
Currency Cold War / Currencies / Fiat Currency
It isn't much of a secret that gold mining shares have suffered greatly in the past 18 months. In fact, since the summer of 2011 the Market Vectors Gold Miners ETF (GDX) has plummeted nearly 40%. That has caused many precious metal investors to give up hope on mining shares altogether; and to also now anticipate a tremendous plunge in gold prices.
Nevertheless, I believe gold and gold mining shares offer investors a great value at this juncture and let me explain why.
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Friday, February 15, 2013
No End in Sight for Global Currency Wars / Currencies / Fiat Currency
With frigid temperatures expected to hover between 15-degree and 23-degree Fahrenheit this weekend in Moscow, it’s a wonder why the world’s most powerful finance chiefs and central bankers would schedule their Feb 15-16th meeting in Vladimir Putin’s backyard. Instead, a better venue for the Group-of-20 would’ve been the Cayman Islands. The Islands are warm year-round, with average highs holding steady in the 80’s. January and February are the coolest months with lows averaging in the lower 70’s. However, Russia holds the presidency of the G-20 this year, - so finance chiefs will have to endure the frozen tundra.
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Friday, February 15, 2013
Currency 'War' or 'Revolution'? / Currencies / Fiat Currency
Talk of a Currency War is becoming much more frequent these days. What's meant by this is that the competitive devaluations of currencies, which has gone on for such a long time -many years in fact--is going to become destructive to real currency values! This brings into question the entire system of exchange rates.
Now we have the assurance that the euro will not be 'managed' down to gain a competitive advantage. Let's watch the rate to see if this is true? Actions speak louder than words, especially those of a politician.
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Tuesday, February 12, 2013
Is Japan About to Fire the First Shots in a 1930s Style Currency War? / Currencies / Fiat Currency
Keith Fitz-Gerald writes: Chances are you've heard about the so-called "race to the bottom" in which various industrialized nations are gradually allowing their currencies to depreciate in an attempt to maintain competitive parity.
Forget about it...the real risk right now is an all-out 1930s-style currency war. I know it's not front-page news yet, but I have a sneaking suspicion it will be shortly.
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Tuesday, February 12, 2013
Why Currency Wars Are Evil / Currencies / Fiat Currency
Real people may die when countries engage in “currency wars.” Countries debasing their currencies risk, amongst others:
•Loss of competitiveness
•Social unrest
•War
Monday, February 11, 2013
Forex Fiat U.S. Dollar Index – Charting Imagination / Currencies / US Dollar
Federal Reserves Notes, [FRNs], are not "dollars," despite the purposefully deceptive mislabeling of them, [mis]using that noun. FRNs are commercial debt instruments, issued by the privately owned Federal Reserve Bank whose owners are responsible for the largest Ponzi scheme [un]known to man. Some get it, the vast majority do not.
[For those incapable of dealing with facts that shake their reality, you can skip to the charts, below, or just skip this commentary in its entirety. The Rothschild Formula, what we call the Great Ponzi Scheme, is unraveling.]
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Friday, February 08, 2013
Why the Euro is Headed Higher / Currencies / Euro
Jeff Uscher writes: European Central Bank President Mario Draghi warned about excessive euro strength at a press conference today (Thursday) following his announcement that the ECB had left interest rates unchanged, as expected.
In response to a reporter's question on whether there was a currency war in progress, Draghi said, "I think we should have in mind one thing: changes in the exchange rates that we see today are not really deliberate competitive devaluations. They are more the effect of macroeconomic policies that are meant to revamp the economies - for example, very low interest rates, promises to stay low for a very long time.
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Friday, February 08, 2013
Shock Year 2013 - Pitched Currency War Among Central Banks / Currencies / Fiat Currency
Friend of gold Jim Sinclair, and executive to a mining firm with interests in Tanzania, put it so well. He captures the theme of this article when he said, "It is the constant drop in the dollar's usage as a contract mechanism internationally. No one sees this but it is the Hammer of Thor on the head of the dollar." The rejection of the USDollar in global trade will mean the end of the abused privilege in a currency turned toxic. Its rejection is the marquee event in the financial world for 2013, following isolation. It is unstoppable and all-encompassing, certain to have geopolitical consequences, as it alters the economic and financial landscape in harsh ways much like a band of violent marauders brandishing machetes alter the neckline of their victims. See the Tonton Macoute in Haiti. The greenback is cornered; it is done!
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Tuesday, February 05, 2013
Euro Currency, Rock Star of 2013? / Currencies / Euro
After we referred to "Draghi's Genius" last August we received pity and ridicule as feedback. It is no longer taboo to be bullish on the euro, but in our 2013 outlook we took it a step further, predicting the euro will be a "rock star." Despite the recent run-up, we may not have seen anything yet. Let me explain.
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Tuesday, February 05, 2013
Value of the Iranian Rial Hits an All Time Low / Currencies / Iran
For months, I have kept careful tabs on the black-market exchange rate between the Iranian rial and the U.S. dollar. This is the metric I used to determine that Iran underwent a brief period of hyperinflation, in October 2012. And, using these data, I calculated that Iran ended 2012 with a year-end annual inflation rate of 110%.
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Monday, February 04, 2013
Why Sterling Crisis May Be Looming In 2013: The Black Snake / Currencies / British Pound
It is now common knowledge that the global financial markets have begun betting against sterling in 2013, the Chinese year of the "Black Water Snake." The Black Snake is supposed to bring unexpected changes, instability and changeability. That is why it is so important in the year of the Snake to plan everything beforehand, and to evaluate adequately before taking any actions. One needs to be more careful and cautious than ever this year! It is in this spirit that the ATCA Research & Analysis Wing and the mi2g Intelligence Unit have been evaluating the situation in regard to the British pound in 2013.
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Friday, February 01, 2013
Wake-Up Call for America: China’s Currency Growing Worldwide / Currencies / China Currency Yuan
Sasha Cekerevac writes: While many people are aware that the Chinese economy is now the second-largest in the world, China’s currency, the yuan or renminbi, is also moving upward in the world rankings in terms of global transactions.
According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the world’s global payment system, the yuan has moved up from 20th in the rankings in January 2012 to 14th position in December 2012. The Chinese yuan is now above the Danish kroner in terms of global payments. (Source: “RMB Tracker: January 2013,” Society for Worldwide Interbank Financial Telecommunication web site, January 24, 2013.)
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Tuesday, January 29, 2013
Is the Fed Doping the Greenback? / Currencies / US Dollar
For seven years Ben Bernanke has played Master of the Universe, that is, has been Chairman of the Federal Reserve (Fed). Bernanke vehemently denies his actions put the US economy at risk. Au contraire, having prevented the US economy's collapse, the Fed's actions have yielded profits to taxpayers. Naysayers lament money doesn't grow on trees, value can't be created through the printing press.
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Monday, January 28, 2013
Surprising Winner of the Currency Wars / Currencies / Forex Trading
Martin Hutchinson writes: It's war by other means. With the Bank of Japan now buying government bonds and targeting an inflation rate of 2%, a global race to the bottom is on again.
Along with the Fed's commitment to "quantitative easing" and the ECB's promise to buy dodgy Mediterranean economies' bonds, Japan's latest move has sparked new fears of a currency war.
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Monday, January 28, 2013
Has 2013 Currency Crisis Begun? / Currencies / Japanese Yen
As many of you who have read my work in the past know, I expect the eventual endgame to this whole Keynesian monetary experiment that has been going on ever since World War II to finally terminate in a global currency crisis. I'm starting to wonder if we aren't seeing the first domino start to topple.
I'm talking about the Japanese Yen of course.
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Saturday, January 26, 2013
Currency Wars and ECB's Shrinking Balance Sheet / Currencies / Forex Trading
Are the euro's gains just starting as the ECB balance sheet shrinks further from LTRO repayment?
278 European banks have repaid €137 bn in the first LTRO operation, which raised € 489 bn in December 2012. LTRO-2 from February 2012 now receive a repayment of about €250 bn.On today's announcement, Spanish 10-year yield saw its biggest decline of all Eurozone bonds, losing 15 bps versus a mere 3 bps for its Italian counterpart. This is partly explained by the fact that Spanish banks were the biggest borrowers in LTRO-1 lending, accounting for 41% of total take-up, compared to 25% from Italian banks.
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Friday, January 25, 2013
The Best Currencies to Invest in for 2013 / Currencies / Forex Trading
Larry D. Spears writes: The best currencies to invest in for 2013 come from Asia, South America, Australia - but not the United States.
The Federal Reserve's misguided insistence on a loose monetary policy, ongoing resistance to government spending cuts, and another increase in the U.S. debt ceiling will all conspire to boost inflationary pressures and restrain the value of the U.S. dollar.
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Tuesday, January 22, 2013
Is the Japanese Yen FINALLY Ready for a Pullback? / Currencies / Japanese Yen
Many of us here on InformedTrades have been waiting for a pullback in the Yen, under the belief that the Yen is headed much lower. Our infographic on Japan as well as this video from ShortJapanDebt, explains all the rationale for the belief in a sustained devaluation of the yen; to summarize, here are the key reasons:
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