Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.
Monday, October 13, 2008
Currencies and Cotton Candy Interest Rate Cuts / Currencies / Financial Crash
By: Money_and_Markets
Jack Crooks writes: I understand that the lending system is in bad shape. Or more specifically, that it's barely functioning at all. We're well past the point when central banks and governments around the globe inexplicitly declared it their duty to save their economies. But they really unleashed their helping hands this week. Read full article... Read full article...
Wednesday, October 08, 2008
Interest Rate Cuts, Recapitalisation's, Japanese Yen becomes Hard Currency / Currencies / Credit Crisis Bailouts
By: Axel_Merk
Europe was all but written off on Tuesday when Gordon Brown, the UK prime minister announced late in the day that £50 billion (about $85 billion) may be injected into several of the biggest banks. The details known so far are that eligible banks can issue preference shares to the government; the Bank of England makes another £200 billion of liquidity available in the short-term markets; and a further £250 billion of government guarantees are issued to help banks in their funding needs. We have been arguing that recapitalizing banks is the most effective way to support financial institutions ( see our analysis of the $700 billion bailout package ). Read full article... Read full article...
Tuesday, October 07, 2008
Global Financial Crisis Safe Havens / Currencies / Credit Crisis 2008
By: Axel_Merk
We have been warning for some time that “there is no such thing as a safe asset anymore, you have to take a diversified approach to something as mundane as cash.” Unfortunately, the current crisis shows that we may be right. Physical gold is attractive to many investors because of its lack of counter party risk. The only counter party risk with gold held in your personal vault is that someone may break in and steal it. However, even staunch gold bugs rarely hold all their net worth in gold, but diversify if for no other reason that it is impractical to have essentially all your net worth in gold. And while gold is currently fulfilling its role as sound money, it often trades in tandem with other commodities; this can result in stomach-twisting volatility. As a result, many hold gold as insurance, but few truly live on their personal gold standard. Read full article... Read full article...
Monday, October 06, 2008
Credit Crisis Actions Risk Collapse of European Monetary Union / Currencies / Euro
By: John_Mauldin
Many of us in the US are focused on our own woes. But this is a global credit crisis. In today's Outside the Box, we take a look at the currency markets, which are in an historic upheaval and also look at what is going on in Europe. I suspect that Europe is in for a period of much distress, as the world begins to deleverage That is why one government after another will back the deposits of banks within their countries, for otherwise capital will flee to countries like Ireland and Germany which ARE guaranteeing the deposits for all banks in their borders. . Many European banks are leveraged 50 to 1 (not a misprint). I suspect that more government will do like Belgium and the Netherlands and inject capital directly into their local banks deemed too big to fail. Read full article... Read full article...
Monday, October 06, 2008
Euro and British Pound Come Crashing Down to Earth / Currencies / Credit Crisis 2008
By: Money_and_Markets
Jack Crooks writes: Don't look now, but the Eurozone and England are in big trouble.
Actually, you do need to look now because there's no point in turning your head away from what's driving global financial markets and more importantly ... currencies.
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Monday, October 06, 2008
European Banking Crisis Deepens as Germany Guarantees Savings / Currencies / Credit Crisis 2008
By: Mike_Shedlock
I am sure glad Paulson says the global financial system is sound. Otherwise I might be worried when I see reports like this: Financial Crisis: Germany guarantees all private savings; UK 'must follow'
The move to protect private bank account deposits in Europe's largest national economy came after similar moves in Ireland and Greece were widely criticised.
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Friday, October 03, 2008
US Dollar Doomed as Credit Crisis Turning into a Currency Crisis / Currencies / US Dollar
By: Jennifer_Barry
When the precious metals were smashed out of nowhere and the dollar started climbing this summer I became very worried. I didn't question my conviction that commodities are in a bull market, or that precious metals in particular are undervalued. I felt something sinister was at work. Neither move was justified on a fundamental level. I assumed that something very bad was about to happen and the metals needed to be brought lower in advance of the bad news. Read full article... Read full article...
Friday, October 03, 2008
US Dollar Death Ray Powered by Soaring Federal Reserve Bank Credit / Currencies / US Dollar
By: Ned_W_Schmidt
Dollar Death Ray , powered by the U.S. Treasury and the Federal Reserve, is aimed at the heart of the U.S. dollar. Forget the U.S. Congress debate of the Bank Bail Out and Congressional Reelection Bill of 2008. The Federal Reserve and U.S. Treasury, without a vote of Congress and support of the voters, has given $253 billion to banks in the past week. That is according to the Federal Reserve statement issued yesterday, 2 October. Without any regard for their actions, these two agencies are flooding the U.S. banking system with liquidity in an unprecedented manner. Read full article... Read full article...
Wednesday, October 01, 2008
Terrible ISM Economic Report Won't Prevent Euro and GBP Selling / Currencies / Futures Trading
By: Ashraf_Laidi
An important component in today's terrible August ISM report (plunging to a 6-year low of 43.5) is the tumbling prices paid component to 53.5 from 77.00, which is a wake up call for the Federal Reserve's misplaced inflation preoccupation, especially given the tumble in the employment index to 41.8 from 49.
Today's ISM report is not only recessionary, but also underlines the notion that "rescue packages" are merely confidence builders and by no means solutions to the deepening macroeconmic economic slump and the resulting financial market erosion. USDJPY seen extending losses towards 105.20. Despite these dismal US figures, we maintan our pessimism with the high yielding FX such as AUD, GBP (still seen at $1.76) and NZD. EUR eyes $1.3950.
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Tuesday, September 30, 2008
Don't Miss the Next Big US Dollar Move / Currencies / Forex Trading
By: INO
The US Dollar has been in a long-term bear market since 2001, having bottomed earlier this year in March at USD 71, the Dollar has since attempted to form a bottom up until the most recent price action.
The following video presents my dollar view for several months.
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Friday, September 26, 2008
US Dollar to be Hit by Federal Reserve Bank Credit Death Ray / Currencies / US Dollar
By: Ned_W_Schmidt
Our graph this week is of the Dollar Death Ray , which is aimed directly at the value of the U.S. dollar. This plot is an extension of that which was introduced in last week's Gold Thoughts . In the graph is plotted the year-to-year change in Federal Reserve bank credit. In simplest terms, it is the rate of expansion of the asset side of Federal Reserve's balance sheet. Latest data was released Thursday, 25 September. In this case, it has been adjusted for a circular transaction created by Treasury supplemental financing of the Federal Reserve which was recently done. Federal Reserve bank credit, or U.S. base money, has now been expanded at a record level. Rarely, if ever, has a major central bank intentionally inflated its balance sheet in such an inflationary manner.Read full article... Read full article...
Wednesday, September 24, 2008
Will the US Dollar Drown in an Ocean of Debt? / Currencies / US Dollar
By: Gary_Dorsch
About $3.6 trillion of market value was wiped-out from global stock markets in the three-days between Sept 15-17 th , triggered by the bankruptcy filing by Lehman Brothers, and fireworks in the $62 trillion credit default swap market. The collapse of Bear Stearns, Merrill Lynch's eleventh-hour flight for safety into the arms of Bank of America, and the meltdown at American International Group, were all linked to credit default swaps on mortgages that led to the fall of these titans. Read full article... Read full article...
Monday, September 15, 2008
US Dollar Rally Not Over Yet / Currencies / US Dollar
By: Mike_Shedlock
Those looking for a collapse in the US dollar in the wake of the Lehman bankruptcy did not get it. The US dollar index was down huge last night but has now rallied to even. Read full article... Read full article...
Friday, September 12, 2008
US Dollars Last Gasp of a Doomed Currency / Currencies / US Dollar
By: Peter_Schiff
In the latest example of financial market madness, the recent government “bailout” of Freddie Mac and Fannie Mae has perversely resulted in a sharp rise in the value of the U.S. dollar. If the markets were functioning rationally, the transference of staggering new liabilities to the U.S. Treasury would have been immediately seen as catastrophic for the dollar. Instead the markets have ignored the obviously negative long-term implications and have remained fixated on the more immediate effects. However, rather than solving the problems, the government's actions merely confirm my worst fears, and increase the chances for a hyper-inflationary outcome. Read full article... Read full article...
Thursday, September 11, 2008
Risk Aversion Drives JPY and GBP in Opposite Directions / Currencies / Forex Trading
By: Ashraf_Laidi
Now that US equity indices have erased all of Monday's gains less than 24-hours after the US Treasury's takeover of Fannie Mae and Freddie, we can further better deduce the extent of negative sentiment prevailing in US and overseas markets. We illustrated on Monday how the number of "up" days in US equity indices following the various interventions from the Fed and the Treasury of the past 9 months has declined over time. The Fed-backed takeover of Bear Stearns in mid March produced a rally lasting 2 months. Read full article... Read full article...
Wednesday, September 10, 2008
“Maverick McCain” and the Resurrection of the US Dollar / Currencies / US Dollar
By: Gary_Dorsch
“As soon as you think you've got the key to the stock market, they change the lock,” lamented Joe Granville, who is mostly remembered for his bearish calls on the US stock market during the 1970's, 1980's, and the 1990's. Nowadays, many currency traders are scratching their heads, trying to figure out what's behind the sudden resurrection of the US-dollar, which is flexing its muscles for the first time in two-years, and defying conventional logic, by climbing sharply higher against most foreign currencies, including those that offer much higher rates of interest.Read full article... Read full article...
Wednesday, September 10, 2008
Scared Money Heads for US Dollar and Treasuries / Currencies / US Dollar
By: Adrian_Ash
"...So today we're back where we started, with a collapse in retail investments (then stocks, now housing) and the collapse of the very biggest institutional bets. The US administration's response...?"
EVIL DAYS indeed. Scared and scarred by losses in all other assets, the world's wealth suddenly wants to sit in the safety of US Dollars and US Treasury bonds.
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Wednesday, September 10, 2008
Massive US Dollar Short Opportunity / Currencies / US Dollar
By: Joe_Gelet
One way or another, the dollar is going down. Hold on to your shorts because this will be the short of the decade.
Recent interventions in commodity markets, which has been a combination of short selling in the Gold market, and large institutions taking profit in a multi-year bull market in hard commodities such as Oil, has caused a short uptick in the dollar.
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Monday, September 08, 2008
The Almighty US Dollar and Gold / Currencies / US Dollar
By: Captain_Hook
(WWII), where to the victors go the spoils derived from conflict. In this case, and subsequent to WWII, the US essentially took control of the Japanese and German economies, and more, spreading it's influence around the globe by imposing $ pricing mechanisms that stand to this day. Therein, it's no fluke crude oil and other commodities are primarily priced in $'s you see, which keeps the demand for the ‘almighty dollar' high, allowing for it's continued unmitigated manufacture. What's more, this manufacture has now spread into financial derivatives and other debt related instruments that keep the $ bubble growing at an accelerating pace. Read full article... Read full article...
Monday, September 08, 2008
British Pound Slides Deeper Against US Dollar / Currencies / British Pound
By: Regent_Markets
It was a good week for European equity markets with the FTSE100 finishing the week at 5636, its highest level for nearly two months. US markets didn’t have such a good time of it, with the Dow Jones and S&P500 finishing largely flat on the week and the Nasdaq closing well down after a sell off on Friday. There was better news for the Greenback though, as the Pound fell to its lowest level for two years against the US Dollar. Although the Dollar has undoubtedly been strong over the last month, last week’s move on Cable (USD/ GBP) was largely a factor of the weakening pound. It made a record weekly low against the Euro and fell to its lowest levels since spring against the Japanese Yen.Read full article... Read full article...