Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Monday, September 27, 2010
Short Term EUR/GBP Gains Delay Medium Term Bears / Currencies / Futures Trading
The earlier fall in the EUR/GBP cross came to a temporary halt in June, and the market has been reluctant to resume its medium term bear path. Recent strength is not yet seen as the precursor to any major trend turnaround, but it still delays lower values.
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Sunday, September 26, 2010
Indian Rupee Currency Forecast to Fall Towards $36-38 / Currencies / India
Currency movement decides the direction of the economy. In normal times, opposite statement would have been proved right. But, this time is different. Every nation is ready to wage war against their trade partners and other exporting destinations to ensure that country can continue to boast their exports and cheap currency can help them to inflate out their debt loads.
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Saturday, September 25, 2010
How to Put a Stronger China Yuan Currency to Work for You / Currencies / China Currency Yuan
Jeff Manera writes: China has perpetually managed its currency, the yuan, to be undervalued. Estimates range from 30 percent to 40 percent on the amount the currency would appreciate if it was allowed to freely float with market forces.
This “management” has given China’s exporters an unfair advantage over other export-driven countries, such as Japan and South Korea, and has provided much of the rocket fuel that made China’s incredible expansion and growth possible.
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Friday, September 24, 2010
China Yuan Currency Revaluation Not All Good for the U.S. / Currencies / China Currency Yuan
The Obama administration and many in congress have been aggressively calling for a revaluation of the Chinese yuan vs. the United States dollar. As of September 22, the yuan has climbed for nine straight days setting fresh records against the dollar as the Chinese central bank changed the parity rate of the yuan to the dollar. As with any change, there are winners and there are losers because of the action by the Chinese government.
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Wednesday, September 22, 2010
Fiat Currency Wars, Competitive Devaluations Fuel Gold’s Rally to $1,300/oz / Currencies / Fiat Currency
With the price of gold zeroing in on yet another major milestone, - $1,300 /oz, some heavy hitters in the marketplace are beginning to wonder if the yellow metal’s rally, is getting a bit too frothy, or even worse, whether a speculative bubble is brewing, that might ultimately deflate under its own weight, and lead to a sharp correction. On Sept 15th, famed hedge fund trader George Soros said that gold prices might continue to rise, but warned that that gold is the “ultimate bubble.”
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Wednesday, September 22, 2010
Top Building Period for Euro / Currencies / Euro
We are long U.S. dollars against the euro now, to go along with our long dollar model portfolio position against the yen, which is a toe-dipping expedition ahead of what I think is an approaching period of lower gold prices, falling oil prices, and correcting equity prices...or in other words, a respite for the "risk-on" trade.
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Wednesday, September 22, 2010
Euro nears $1.34 following Fed meeting announcements / Currencies / Euro
Central Bank leaders elected to leave interest rates alone following their monetary policy meeting on Tuesday (September 21). The move extended weakness in the dollar and helped push the euro and pound higher.
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Wednesday, September 22, 2010
U.S. Dollar Falls below USD 80, the Currency Crisis Has Begun / Currencies / US Dollar
It's been my position for a while that Bernanke's monetary policy would eventually create a currency crisis in the world’s reserve currency.I warned that crisis would begin as soon as it became apparent the dollar was caught in the grip of the 3 year cycle decline.
Wednesday, September 22, 2010
Currency Exchange Rates Can Hurt Your Stocks Investment Portfolios / Currencies / Risk Analysis
Shah Gilani writes: You may be facing immense foreign-currency risks in your investment portfolio - and not even realize it. If that's the case, don't feel bad: You're not alone.
The reality is that most American investors have no idea that currency exchange rates directly affect U.S. corporate earnings, this country's stock market, or the growth rate of our economy.
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Tuesday, September 21, 2010
U.S. and China Playing Currency Manipulation Kabuki / Currencies / Market Manipulation
In his testimony before the U.S. Congress last Thursday, Treasury Secretary Tim Geithner accused China of "very substantial" currency intervention, and the U.S. will use every available tool to urge China to let the yuan rise more quickly, including taking it up in front of the G20 Summit and WTO. President Obama quickly followed up with some more tough rhetoric on Monday, while U.S. lawmakers are weighing new legislation against China.
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Monday, September 20, 2010
For a Clear View of the Dollar’s Pressure Watch the Swiss Franc / Currencies / US Dollar
The Swiss Franc has enjoyed a strong rally against the Dollar spread over many years with a brief correction around the turn of the millennia. Although a small economy compared to the US, it is well known how strong the Swiss economy is and the standard of living is among the highest in the World.
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Monday, September 20, 2010
EUR/JPY Once More Attempts Recovery Off 76.4% / Currencies / Forex Trading
Weakness in the EUR/JPY cross this year saw a test of a long term 76.4% retracement. It hasn’t worked perfectly as support, but still seems to be having a deterrent effect on the bears. Following a s/term recovery we look again at the next signals required to provide bulls with hope.
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Sunday, September 19, 2010
United States versus China, Currency and Trade Wars / Currencies / Market Manipulation
The Chinese government, in an effort to maximize exports and minimize US imports prints their yuan to buy dollars. This prevents their currency from rising and the dollar from falling. Then it loans those same dollars back to America by buying US debt.
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Sunday, September 19, 2010
Biggest Ever Yen Intervention, 25% Over Valued Agains the Dollar / Currencies / Japanese Yen
Last week, I pointed to the challenges facing Switzerland and Japan’s currencies. As for the yen, I said that nothing short of actual intervention would relieve the pressure on its exporters. I also said that I expected it to happen.
And it did.
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Saturday, September 18, 2010
Japan Currency Intervenention to Bail Out America / Currencies / US Dollar
This week, after the Japanese yen had surged to a fifteen-year high against the US dollar, the Japanese government decided to intervene in the foreign exchange market. To great fanfare, the Bank of Japan initiated a vigorous campaign to buy US dollars, thereby stemming the rise of the yen and pulling up the greenback. The effects were immediate, with the yen falling an astonishing 3% on the day of the announcement. At a time when American politicians are growing increasingly vocal about China's currency manipulations, Washington was strangely silent on the Japanese move. This was completely overlooked by the hawkeyed media.
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Friday, September 17, 2010
Can the U.S. Afford to Call China a Currency Manipulator? / Currencies / Fiat Currency
Jason Simpkins writes: It seems like every six months the debate over China's currency, the yuan, reaches a fevered pitch: The Washington bureaucrats threaten to label China a "currency manipulator" and Beijing threatens to dump its U.S. debt holdings.
Then, with the imminent approach of a major inflection point - be it a key international summit or major financial report - both sides grudgingly agree that a modest appreciation of the yuan would be mutually beneficial.
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Thursday, September 16, 2010
China Japan Forex Battle / Currencies / Fiat Currency
While many have assessed Japan's powerful intervention (JPY 2 trillion worth of currency selling) via the lens of the US dollar, the operation could be a loud warning shot to Beijing, given the record buying of Japanese Government Bonds by China. Cynics (possibly realists) could reason that China seeks to hamper Japan's recovery by keeping the yen excessively strong, while profiting along the way (via accumulating appreciating yen and gradually reducing exposure to depreciating US dollars). After all, the race for the 2nd biggest economy remains in close contention between China and Japan.
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Thursday, September 16, 2010
Euro Moves Higher Against U.S. Dollar / Currencies / Euro
The euro traded as high as $1.3038 earlier Wednesday (September 15) and currently sits at $1.3011 after upbeat US data this week has cause some speculators to move away from the dollar and into more high risk investments.
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Wednesday, September 15, 2010
Who Owns the U.S. Dollar? / Currencies / US Dollar
At first glance, this would seem like a rather silly, stupid and pointless question. Why, the average person would answer, the American people own it. Or rather, if one had to get more technical, the American government, which is in turn, being a Republic, owned by the people, one in the same.
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Wednesday, September 15, 2010
Dueling Fiat Currencies / Currencies / Fiat Currency
My daughter, for some reason, decided that breakfast is the best time of day to tell me that she needs me to give her a wad of money, more money than I earned in a freaking month when I was her age, and for some stupid "back to school supplies" or to "have the sutures removed," or something, I can't remember the stupid details, but whatever it was, I remember that did not want to pay for it.
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