Category: Forex Trading
The analysis published under this category are as follows.
Thursday, November 20, 2008
Seasonal Currency Reversals and Implications of Zero Fed Interest Rates / Currencies / Forex Trading
By: Ashraf_Laidi
Although currencies ended up adopting their usual path of following the swings in risk appetite, it's worth explaining Wednesday's earlier spikes in EURUSD and GBPUSD. The moves were a result of broad dollar selling (also seen in a $25 rally jump in gold) on reports that Iran was pushing ahead with its nuclear program. The International Atomic Energy Agency found stated an increasing build up of enriched uranium stockpiles, which could be converted into weapons-grade material. Read full article... Read full article...
Friday, October 24, 2008
British Pound Biggest Crash Since 1971 and USD/JPY Cycles / Currencies / Forex Trading
By: Ashraf_Laidi
Sterling collapses by over 800 points (8 cents) to $1.5260, posting its biggest intraday decline since exchange rates became freely floated in 1971, reinforced by a bigger than expected 0.5% q/q decline in UK Q3 GDP, and a 0.3% y/y rise, versus expectations of a 0.2% q/q decline and below expectations. EURs decline vs USD is not as pronounced as GBP, hence the prolonged spike in EURGBP to a 2-month high of 81.00 pence from Wednesdays 77.5 pence. World equity markets are in virtual free fall, with trading on S&P500 mini contracts suspended for reaching limit down. Read full article... Read full article...
Friday, October 17, 2008
USD/JPY Strategy and Yield Curve Analysis / Currencies / Forex Trading
By: Ashraf_Laidi
Violent volatility maintains its daily routine of aggressive swings, as US equities close 5% higher after more than a 9% decline yesterday, dragging risk appetite and currencies along with them. Wednesday's trading session saw a short-lived attempt for economic reports to reassert their dominance on financial markets before risk took over on Thursday. Market players were astounded by the fact that neither the 34-year lows in US industrial production, nor 18-year lows in the Philadelphia Fed index nor the record lows in the US National Association of Homebuilders' index dipping managed to bring down US stocks. Read full article... Read full article...
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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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, August 20, 2008
Forex Currency Market Forecasts for US Dollar / Currencies / Forex Trading
By: EWI
There is a reason why more websites talk about trading forex than trading stocks: Online currency trading is quickly becoming a mainstream activity.Forex already is THE largest and most liquid market on the planet. Its daily volume is ten times larger than the combined daily turnover on all of the world's stock exchanges. And it's attracting more currency speculators every day.
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Sunday, August 17, 2008
US Dollar's Dramatic Rise Helps Level Currency Playing Field / Currencies / Forex Trading
By: Money_and_Markets
Jack Crook writes: After a dramatic two weeks in the currency market, I figured now is a good time to run through the recent action. Plus, I'll give you my outlook for the major currencies making the most noise. Let's get started ...
A Good Couple of Weeks for the Buck
I'll keep it simple: The U.S. dollar and the U.S. economy have undergone no structural changes. Their relatively improved status seems to rest mostly on the worsening state of their major competitors — especially the euro.
Sunday, July 27, 2008
Crisis Currencies Poised to Surge as Frightened Capital Flows from Risk to Safety / Currencies / Forex Trading
By: Money_and_Markets
Jack Crooks writes: On various occasions in the past couple months, my editorial has tried to bring to light some of the bright spots, or shall I say "relatively less dark spots", in the U.S. economy.
Ultimately, I've tried to connect it to the dollar and its potential to temporarily buck (pun intended) its long-term bearish trend. Sometimes I've had it right, for a little while anyway, and other times I've had it wrong, or at least the market told me I did.
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Wednesday, July 23, 2008
British Pound, Euro Racing Lower Against a Resurgent US Dollar? / Currencies / Forex Trading
By: Black_Swan
The story so far this week was fired up yesterday via dollar positive comments from Treasury Secretary Hank Paulson (same old stuff) and monetary policy comments from Philadelphia Fed President Charles Plosser.
Bottom line: the US dollar zipped higher and is continuing its rocket-ride today.
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Monday, July 14, 2008
Swiss Franc to Benefit from European Carry Trade Against British Pound / Currencies / Forex Trading
By: Black_Swan
The ramp-up in credit risk in the market is huge. The pound is acting well today on the back of market risk. But, in the recent past the Swiss franc has been the star currency that has acted very well on risk, for two reasons we think:
1) Switzerland still hanging on to some reservoir of safe haven status in times of global trouble (and despite severing its gold link to its currency, it is still has a larger gold backing than any other of the major currencies).
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Monday, July 14, 2008
New Zealand Dollar Runs Out of Steam as Interest Rate Cuts Beckon / Currencies / Forex Trading
By: Money_and_Markets
Jack Crooks writes: Last week I told you the U.K. could see a worse economic downturn than the U.S., and said that would weigh heavily on the British currency.
Meanwhile, one of my readers who resides Down Under recently told me that he's afraid to trade the Australian dollar.
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Friday, July 04, 2008
Three Conditions for Day Trading the Non-Farm Payroll (NFP) / Currencies / Forex Trading
By: Yvonne_L_Marchant
Low Risk - High Reward – Does it exist? My friend who lives in Perth , Australia , has just come back from two weeks surfing in the beautiful blue waters of Sydney . Can you believe it? It is meant to be the middle of winter over that side of the world! Needless to say he hadn't been doing much trading. So to get him back into the swing of things, I was telling him about how I trade the Non-Farm Payroll (NFP). Read full article... Read full article...
Tuesday, July 01, 2008
FX Forecasts: Fundementals Remain Weak for the US Dollar / Currencies / Forex Trading
By: Ashraf_Laidi
What began the month with an unexpected bang in currency markets ended with a not so unexpected whimper. Fed Chairman Bernanke's eventful speech of June 3rd to the International Monetary Conference supporting the dollar was seen as the possible end of Washington's policy of benign neglect towards its currency. But the economic fundamentals wouldn't play along.
US Treasury Secretary urged the Gulf States not to end their pegs to the dollar or not to even revalue their currencies against the greenback. Saudi Arabia conformed to Paulson's requests urging the rest of GCC states to do the same. And in order to make that possible, i.e. to combat the inflationary pressures of pegging their currencies to a falling dollar, Saudi Arabia increased oil supply by 200K barrels per day and even hosted an extraordinary summit in Jeddah where oil producers and consumers could work out their differences.
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Monday, June 30, 2008
Aussie Dollar: A Short Set-up Developing … / Currencies / Forex Trading
By: Black_Swan
Sometimes we like to give you a free glimpse into what types of trade set-ups we watch for and act on in our premium services. Here’s an interesting set-up that’s caught our eye ...
There are a couple things going on that are impacting the price of the Australian dollar versus the US dollar. Among them: interest rates, economic developments and the global risk-taking environment.
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Wednesday, June 18, 2008
US Dollar / Japanese Yen Low Risk Opportunity / Currencies / Forex Trading
By: Black_Swan
We’re wondering: How credible is the Japanese yen risk-aversion play? Stocks have been less than stellar lately yet the yen has pretty much been sliding against the buck. That’s not exactly how it worked when subprime, credit crunch and writedowns were the new buzz words on Wall Street.Read full article... Read full article...
Friday, May 02, 2008
Learn How To Trade Forex / Currency Markets- Video Lesson / InvestorEducation / Forex Trading
By: EWI
Watch Jim Martens, Senior Currency Strategist at Elliott Wave International, the world's largest market forecasting firm, give tips on how to trade forex with Elliott wave analysis – FREE. Read full article... Read full article...
Thursday, February 28, 2008
Forex Currency Market Strategy EURNZD, AUDCAD, EURCAD, CADJPY, USDJPY / Currencies / Forex Trading
By: Ashraf_Laidi
The surging euro hasn't only been a case of broad dollar weakness but also of improving confidence in the Euro zone's biggest economy as the currency posted broad gains even versus the soaring Aussie, Kiwi and loonie.
Our FX Charts strategy yesterday was bullish EURGBP, EURCAD and bearish USDJPY. EURGBP pushed up from 0.7545 to 0.7616, surpassing our 0.7575 objective. EURCAD bounced off its 1.4684 low to 1.4849, exceeding our 1.4780 objective. USDJPY dropped from 107.77 to 106, reaching towards 105.98 and overshooting our 106.80 target.
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Wednesday, February 06, 2008
Currency Market Strategy and Forecasts for February 2008 / Currencies / Forex Trading
By: Ashraf_Laidi
We expect the dollar and the yen to emerge as the broad winners in February, dragging the European and antipodean currencies (AUD, CAD, NZD) lower amid deepening signs of a slowdown in the Eurozone and the UK , and further reduction in global risk appetite. We do not anticipate the Fed to be forced into an inter-meeting rate cut this month partly due to Fed Chairman Bernanke's scheduled Congressional testimony on the economy next Thursday, which will act as the next driver of market interest rates.
Renewed sharp losses in equities will inevitably trigger speculation of an inter-meeting move, but the Fed is expected to hold off as the past 225-bps cuts have yet to take effect into the full economy. We expect another 125-bps in fed funds rate cuts for the year.
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Thursday, June 07, 2007
The Aussie Dollar Revisited / Currencies / Forex Trading
By: Mario_Innecco
Three months ago we wrote about the fact that the Aussie dollar had broken through a key technical level in an article entitled Is the Aussie Dollar Ready to Take a Big Hop? . Today as we write the currency from down under is making a seventeen-year high at $0.8476. The 1990 high was at $0.8405 and the next big target will be the 1989 high at $0.8905.
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Tuesday, May 29, 2007
FX Strategies : Canadian Dollar to Still Prevail over Aussie / Currencies / Forex Trading
By: Ashraf_Laidi
Today's decision from China to raise the stamp tax on securities trading to 0.3% from 0.1% is a more direct attempt to cool its runaway stock market than last week's hike in reserve requirements and interest rates. The news was announced in early afternoon NY trade, causing a retreat in US stocks and the higher yielding pairs of EURJPY, GBPJPY, NZDJPY, NZDUSD and USDJPY. The explanation is that such increased transaction costs on equities would raise the likelihood of the much awaited "China correction", thereby triggering a repeat of the domino effect in global equities seen in late February-early March.Read full article... Read full article...