Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Thursday, April 04, 2013
The Money-ness of Bitcoins / Currencies / Bitcoin
Bitcoins have been much in the news lately. Against the background of renewed concerns about the integrity of the euro zone and the imposition of capital controls in Cyprus, the price of a bitcoin has tripled over the last month and reached more than $141 for 1 BTC. Are we witnessing the spontaneous emergence of an alternative virtual medium of exchange, as some would put it? This article offers an answer to this question by considering three aspects of the economy of bitcoins: their production process, their demand factors, and their capacity to compete with physical media of exchange.
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Friday, March 29, 2013
Bitcoin: The Digital Kill Switch / Currencies / Bitcoin
Bitcoin is the first peer-to-peer (P2P) digital currency and payment system to gain significant interest. This month its marketcap surpassed $1 billion.
P2P currencies promise some differences from credit cards, such as increased privacy, no control by authorities, instant signup, lower fees for the merchant, and no chargebacks (buyer at the mercy of the merchant to issue refund if dispute).
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Tuesday, March 26, 2013
Say Goodbye to the Purchasing Power of the Dollar - Bernanke Goes to Crazytown / Currencies / US Dollar
On a long solo car trip last week, I listened to several podcasts to pass the time. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.
The podcast is an effective reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does.
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Tuesday, March 26, 2013
World's First Bitcoin ATM to be located in Cyprus / Currencies / Fiat Currency
While European politicos negotiate in Brussels, deciding the fate of other people's money in Cyprus, the free market has already moved in to help Cypriots get access to their money via other means...
Banks have been closed for the last week in Cyprus and if they do re-open on Tuesday, it has now been announced that daily withdrawal limits at ATMs will be 100 euros per day.
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Monday, March 25, 2013
The U.S. Dollar and the Real Inflation Story / Currencies / US Dollar
I can’t tell you how many talking heads I've watched in the media recently touting the strong dollar. Sometimes I really wonder whether Homo sapiens are an intelligent life form. Remember, this is the same species that created the Tulip mania … and the tech, and real estate bubble.
Folks, in the real world it just isn't possible to have a strong dollar if you are counterfeiting 85 billion of them a month. That’s just basic common sense, which seems to be an extremely rare commodity in the world today.
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Saturday, March 23, 2013
U.S. Dollar Fiat Cliff / Currencies / US Dollar
I would like to start this piece by recommending a rather thorough and viable chart study of the US dollar by an analyst writing under the pseudonym Rambus, titled Dollar Bears Prepare to Hibernate. Rambus has produced some excellent charts in this piece along with sound analysis, and in my view, provided readers with valuable information and insights.
It is my hope that Rambus and the readership at large will not mind if I attempt to add another layer to his cogent work.
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Tuesday, March 19, 2013
Buy or Sell the Euro? Chaos Investing Unplugged / Currencies / Euro
When we called the euro the potential “rock star of 2013”, we knew it might be a rocky ride. Are we underestimating the incompetence of policy makers? The Europe that is shaping up is much like the old Europe, with implications for the dollar, the euro, and investors’ portfolios.
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Monday, March 18, 2013
U.S. Dollar Bears Prepare to Hibernate / Currencies / US Dollar
Today I would like to show you the Chartology of the US Dollar based on charts from the short term to the very long term that are painting a positive picture for the US Dollar. What I’m seeing on the charts is not going to be just a short term event type thing but a longer multi year positive change for the dollar. Understanding the movements in the dollar can help us understand other movements in other areas of the markets which is very important to getting the big picture right. If you can get the big picture and trend right that goes along way in knowing which side of the market to be on. In a bull market you want to trade with the uptrend and when your in a bear market you want to trade with the downtrend. This is simple to understand but much harder to do in practice. So with that said lets take a good long hard look at the US dollar and see what the charts are telling us.
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Friday, March 15, 2013
Fiat Currency Ultimate Value at Risk / Currencies / Fiat Currency
The currency by which one measures value will be the ultimate way of measuring risk. Furthermore, the recent increase in currency dilution due to rampant money printing has and will continue to result in currency debasement.
This process is happening to virtually every major currency, but it is often not readily observable because the devaluations occur relative to one another since all currencies are traded in pairs in the forex market.
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Monday, March 04, 2013
The Best Way to Trade the Currency Wars / Currencies / Forex Trading
Shah Gilani writes: The world may not be engaged in a currency war yet, but it is engaged in a growth war.
With domestic demand in most home countries anemic to moderate, the universal objective is growth by exports.
Unfortunately, countries doing battle in the growth-by-exports wars end up skirmishing in the foreign exchange markets. That's because every country that wants to export its goods and services wants them to be relatively cheap compared to its global competitors.
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Tuesday, February 26, 2013
Buyer’s Remorse at the Fed: Investor Implications / Currencies / Fiat Currency
A couple trillion dollars ago the Federal Reserve (Fed) decided quantitative easing (QE) is what the U.S. economy needed. Now, as an increasing number of Federal Reserve Open Market Committee (FOMC) members caution about the dangers of QE, are we seeing a classic case of buyer’s remorse? More importantly, will it return its merchandise and what are implications for the economy and the U.S. dollar?
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Monday, February 25, 2013
How to Make a Fortune If the Currency Wars Go Atomic / Currencies / Fiat Currency
Shah Gilani writes: There's a lot of talk about currency wars these days, but very little understanding about what that means for specific countries, economic growth, inflation, and your pocketbook.
Let's fix that.
First of all, there has been no declaration of any currency war. And there likely won't be.
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Sunday, February 24, 2013
Orwellian Currencies - This Is the Worst Trading Situation I Have Ever Seen / Currencies / Fiat Currency
Taking inspiration from George Orwell's "1984," renowned BMO advisor Don Coxe has coined the expression "Weakness is Strength" to describe the current economic situation. In a far-ranging interview with The Gold Report, Coxe explains how an international regime of weak currencies has set the scene for a upsurge in the price of gold shares and believes that gold will return as a preferred hedge against loss of value because inflation is inevitable.
The Gold Report: Your investors' report last week was entitled, "Orwellian Currencies: Weakness is Strength." Could you please explain?
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Thursday, February 21, 2013
How You Can Make Money Shorting the British Pound / Currencies / British Pound
Ben Gersten writes: Shorting the yen has earned George Soros more than $1 billion in profits since November.
Now Soros has set his sights on the second-most-shorted currency in the world - the British pound.
And he may have company, as the Financial Times reports: Along with Soros Fund Management, Tudor Investment Corp., Caxton Associates and Moore Capital - some of the best global macro traders - "see similarities in UK's predicament to that of Japan" and are interested in shorting the pound.
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Thursday, February 21, 2013
Fiat U.S. Dollar Approaching Resistance In Middle Of Trading Range / Currencies / US Dollar
The best thing about reading developing market activity is that it leads you to a logical conclusion, and when things are not clear, that too, is a logical conclusion, saying: No edge, stay away. Because charts are the visual form of final decisions made by all participants, we are getting the best source for collective thinking about a market's direction. What we get to do is read what message the market is sending.
It is always important to put the market into a context. Many traders are eager to "catch the next move," often based upon a myopic view of price behavior. Most who look at charts view the daily and intra day, looking for the next winner, often getting another loser. Here is a current daily:
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Wednesday, February 20, 2013
Are You About to Lose Your Savings in the Global Currency War? / Currencies / Fiat Currency
Peter Krauth writes: You may not have even noticed, but the first shots have already been fired in the next World War.
Only this time there are no tanks, fighter jets, nuclear subs, or missiles. And it's not the North against South, or even East against West.
It's war by other means and it pits fiat currency against fiat currency in a multi-trillion dollar knock-down drag out between the world's central bankers.
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Wednesday, February 20, 2013
U.S. Winning the Currency Wars / Currencies / Fiat Currency
Currency Wars will most importantly play out at the heart of investors’ portfolios rather than in the blogosphere or on TV. While the focus may currently be on Japan’s efforts to weaken the yen, U.S. investors might be particularly vulnerable. Let me explain.
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Wednesday, February 20, 2013
Currency Wars - Race to the Bottom / Currencies / Fiat Currency
The alarmist media always seeks to sell papers or broadcast ratings, built on the unswerving fear that followed the financial meltdown, the banking establishment profits from the debt liquidation panic. The lack of stability in fiscal confidence certainly abounds, but the schemes to paper over the mountain of liability obligations, develop at even a more rapid pace. The implied result of a real currency war is that nations are acting or defending their own national interests. The truth is that fiat currencies, designed to depreciate, benefits the moneychangers as the loss of purchasing power penalizes taxpayers and consumers.
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Wednesday, February 20, 2013
Euro Signs Of Caution For Upside Move / Currencies / Euro
Oftentimes, first impressions are the best because the perceived information strikes the mind unfiltered by second and third impressions that may begin to second-guess the first. The weekly and daily charts of the Mar Euro are first impression expressions.
Many will look at this weekly chart, well, maybe not so many, but of those who do, they will see that the recent high rallied above the February 2012 swing high and conclude the Euro is acting well. We would disagree, and here is why.
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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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