Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Thursday, August 23, 2012
A History of Exchange-rate Regimes Infographic / Currencies / Fiat Currency
It’s almost as if currencies are designed to confuse you. In fact, sometimes they even lie to you. Take the pound sterling for example; each 5, 10, 20 and 50 pound note assures you, the esteemed owner, the gracious right to redeem it for… 5, 10, 20 and 50 pounds respectively. Either there’s an awkward “I-give-it-to-you-so-that-you-can-give-it-back-to-me” manoeuvre involved here or somebody’s lying. Well, this quirk and much more is cleared up when recounting the evolution of currency systems over the past two centuries; and as it turns out this history is far more exciting than is usually let on (think political thriller as opposed to economic textbook!). So without further ado here we present a history of exchange-rate regimes from 1821 to the present day.
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Wednesday, August 22, 2012
Four of the Best Currencies to Invest in for 2012 / Currencies / Forex Trading
Larry D. Spears writes: If you had to pick one word to describe the outlook for the world's major currencies heading into 2013, it would have to be "inconclusive."
Since late May, none of the leading currencies has managed to establish a prolonged trend, with choppy action being driven by continued economic instability in Europe, a sluggish recovery in the United States and slowing growth in the Far East.
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Tuesday, August 07, 2012
U.S. Dollar Debasement, The 100 Year Bust / Currencies / Fiat Currency
A Matter Of Trust – Part Two
This is Part 2 of my three part series on trust. Part 1 addressed the history of bubbles and busts and the role trust plays in these episodes. In the end, truth is what matters.
“Trust starts with truth and ends with truth.” - Santosh Kalwar
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Wednesday, August 01, 2012
Mario Draghi Cannot Save the Euro / Currencies / Eurozone Debt Crisis
Martin Hutchinson writes: Of all the pyramid schemes that governments and banks have perpetrated in the last decade, the Eurozone debt crisis is the most damaging.
No amount of posturing by European Central Bank President Mario Draghi can change that fact.
The market may like what Draghi has to say about the fate of the euro, but tomorrow's big ECB meeting will change little.
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Monday, July 30, 2012
The Inevitable Death of the Euro / Currencies / Euro
On Thursday the European Central Bank’s Mario Draghi was moved to defend the euro, after Spain’s government bond yields rose dramatically through the 7% level. And when Valencia asked the central government for a bailout, followed by indications that other cities and regions have similar problems, it became clear that Spain is in deep trouble. We have got used to the concept of too-big-to-fail; now we have too-big-to-rescue.
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Sunday, July 29, 2012
Euro-zone Crisis, What Germany is Doing Wrong / Currencies / Eurozone Debt Crisis
John Taylor, founder and CEO of the world's largest currency hedge fund FX Concepts, spoke with Bloomberg TV's Sara Eisen and said that Draghi's promise to do what's needed to preserve the euro will result in a weaker currency as the ECB prints more money than its counterparts. He said that Europe's crisis is in the "second or third inning...it's in the beginning. You've got a long way to go."
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Wednesday, July 25, 2012
The Currency Debasement Fallacy / Currencies / Fiat Currency
In Frédéric Bastiat’s 1850 essay Ce qu'on voit et ce qu'on ne voit pas, the famous economist introduced the parable of the broken window. He illustrated the principle that intentionally breaking a window just so that someone can subsequently fix it did not actually represent an increase in the net wealth of an economy. Today we will examine a similarly misguided fallacy that has been the foundation of an equally disastrous pattern of economic policy. We will call this the fallacy of the debased currency.
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Monday, July 23, 2012
Rising U.S. Dollar Forces Bernanke’s Hand / Currencies / US Dollar
Could it be that world governments and central banks are now taking drastic measures to re-inflate their economies because they don’t believe their own economic statistics? For example, China reported that GDP growth came in at 7.6% last quarter. That’s slower growth, but still not so bad. However, China’s electricity consumption has slowed much faster than growth in official GDP (electricity generation was unchanged in June from a year earlier at 393.4 billion kilowatt-hours), when they normally move in tandem. Turning to the U.S., the Labor Department announced last week that initial jobless claims fell 26k to 350k. Sounds great…but wait. Digging into the unadjusted data, there was actually an increase of 69,971 claims for the week—an increase of 19% from the week prior. Now that’s some seasonal adjustment!Read full article... Read full article...
Monday, July 23, 2012
Euro Shorts Smell Blood / Currencies / Euro
Within the eurozone there are great stresses. At one extreme there are punitive costs of borrowing for Greece, Cyprus, Portugal, Ireland, Spain and Italy; at the other there is zero or negative interest rates for Germany, the Netherlands and Finland. Doubtless the first group begets the second, as captive investors in euros have to buy government bonds, and this requirement is being funnelled away from risk into safety.
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Friday, July 20, 2012
Forex Trading Event - See Today's Top 5 FX Opportunities / Currencies / Forex Trading
You're invited to a free forex trading event hosted by our friends at Elliott Wave International!
How to Trade the Top 5 Forex Opportunities Right Now
Now through July 26, EWI Senior Currency Strategist Jim Martens will walk you through some of his best opportunities in key forex markets and show you how to act on them using the Elliott Wave Principle.
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Friday, July 20, 2012
Why is the Austrailian Dollar Still Surging? / Currencies / Forex Trading
Picture this. It's late May. You're in Australia. You have an interest in the currency markets: Maybe you speculate in forex; maybe your business depends on the exchange rates.
Every morning, you scan the headlines. This is what you see regarding the Australian dollar during the last week of May:
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Thursday, July 19, 2012
Germany Leaving the Euro as Germans Are Already Using Deutschemarks Again! / Currencies / Eurozone Debt Crisis
Since November 2011, I’ve been saying that Germany will leave the Euro, but NOT necessarily the EU. The reason? Well, for one thing Germany laid out legislation that would allow this happen. Then of course you have the following comments from Germany’s finance minister Wolfgang Schauble:
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Tuesday, July 17, 2012
Today's Top 5 Forex Trading Opportunities / Currencies / Forex Trading
Dear Trader,
On July 6, the EUR/USD fell to a new 2-year low.
The reason for the drop?
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Wednesday, July 11, 2012
Gold to Outshine U.S. Dollar? / Currencies / US Dollar
As the price of gold has gone up fivefold over the past 10 years, why would one buy it at today's prices? For the same reason an investor would buy any other asset: if one believed it would be a good investment now, that is if one believed it may appreciate in value and add portfolio diversification benefits. A key reason to hold gold today might be to prepare for the crisis tomorrow.
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Thursday, July 05, 2012
A Rare Forex Trading Opportunity in the Australian Dollar / Currencies / Forex Trading
Dr. Steve Sjuggerud writes: Right now, the Australian dollar is a perfect example of what I look for in my True Wealth newsletter...
It is cheap, hated, and in an uptrend.
It is time to buy Aussie dollars.
Thursday, June 28, 2012
US Dollar: Wave Counts, Flight-to-Safety? / Currencies / US Dollar
In light of how political systems have so utterly ruined the purpose and utility of the modern worlds essential and fungible units of exchange, and despite the oxymoron in our alluding to a flight-to-safety, we shall nonetheless endeavor to add a meaningful level of clarity to the disposition of the US dollar.
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Monday, June 25, 2012
Faith, Confidence, and Sound Money / Currencies / Fiat Currency
A recent study about high, long-term government budget deficits published by the Washington Post indicates that such situations can be statistically linked to significantly lower future growth levels.The National Bureau of Economic Research looked at 26 past examples of when the level of government was running over 90 percent for a five year period or longer.
Wednesday, June 13, 2012
How to Save the Euro / Currencies / Euro
The management of the Eurozone debt crisis is dysfunctional. In our assessment, to save the Euro, policy makers must focus on competitiveness, common sense and communication. If policy makers strived to achieve just one of these principles, the Euro might outshine the U.S. dollar.
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Friday, June 08, 2012
Strong U.S. Dollar Fallacy / Currencies / US Dollar
After a shocking upset in Greece’s parliamentary elections, the US dollar surged dramatically. Soaring 5.4% in May alone, the world’s reserve currency won legions of fans among traders. “King Dollar” was universally lauded, with everyone jumping on the strong-dollar bandwagon. But this dazzling strength was merely a short-term phenomenon. Zoom out a little, and today’s “strong dollar” is a fallacy.
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Friday, June 08, 2012
What Is Money, The Greatest Invention Ever? / Currencies / Fiat Currency
Today, we're accustomed to thinking of small greenish paper rectangles as the definition of money, and we think of the US government as the only source of money. To honestly discuss sound money, we need to realize where our current money customs came from.
At first, it was every man for himself. You ate or wore what you could pick or catch.
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