Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Friday, March 18, 2011
Japanese Banking Crisis is Inevitable Despite G7 Currency Market Intervention / Currencies / Japanese Yen
Keith Fitz-Gerald writes: The United States and Canada today (Friday) joined other Group of Seven (G-7) nations to intervene as a means of weakening the Japanese yen in an effort to help Japan deal with last week's catastrophic earthquake and tsunami.
This G-7 intervention is a substantial development, although there are precious few details, since none of the world's central bankers (a list that includes the U.S. Federal Reserve) have commented on exactly what "intervention" entails. Nor have they identified what currencies will be involved.
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Friday, March 18, 2011
Gains in EUR/GBP Nearing Key Resistance / Currencies / Forex Trading
Following an earlier medium term bear signal in the EUR/GBP cross the next stage in downward development has been reluctant to get underway. While bears’ hopes are not yet threatened, shorter term focus has turned to certain overhead resistance levels.
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Thursday, March 17, 2011
Why the Yen Should Become Stronger, Not Weaker, Japan Government Faces Debt Crisis / Currencies / Japanese Yen
Renate van Ginderen writes: Japan’s Economics Minister Kaoru Yosano stressed that damage from last week's devastating earth quake and tsunami to the country's economy would be limited. However, what he did not mention was that the adverse effects from damaged nuclear plants are likely to be much bigger.
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Wednesday, March 16, 2011
ECB Peripheral Divergence and EUR/USD / Currencies / Euro
The primary reason for the currency's stabilization earlier this year and the subsequent 10% rally from early Jan was the ECB's hawkish rhetoric in the face of rising inflation. 2.4% annual inflation was a sufficiently good reason for the ECB to make a hawkish twist, especially as it underwent the awkward task of having to buy Irish and Portuguese bonds, while preaching monetary discipline and price stability. Bernanke's constant reiterations to maintain QE2 into June did not help the US dollar and neither did the low-volume surge in global equities to fresh 2 ½ year highs.
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Wednesday, March 16, 2011
How to Play the Japan Post-Disaster Currency Moves / Currencies / Forex Trading
Keith Fitz-Gerald writes: According to Biriniyi Associates, investors threw more than $1 billion into Japanese exchange-traded funds (ETFs) last month - second only to U.S. energy funds and more than agriculture, large-caps and mid-cap stocks combined.
They couldn't have placed their bets at a worse time.
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Sunday, March 13, 2011
Time to Bet on a RISING U.S. Dollar? / Currencies / US Dollar
Dr. Steve Sjuggerud writes: You hear it over and over...
"Because of all the debts and the deficits, the dollar is about to crash."
Friday, March 11, 2011
Currency Investing: Where to Turn When the Dollar, Euro and British Pound Let You Down / Currencies / Investing 2011
Martin Hutchinson writes: Currency investing is something of hustler's shell game right now. No matter which of the Big Three developed-market currencies you choose, you're setting yourself up to be swindled.
Here's how it works.
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Thursday, March 10, 2011
The U.S. Dollar’s Double Decline / Currencies / US Dollar
Even silver and gold bears realize that the dollar is in decline, but few realize the extent of such a decline and how massive shifts in capital flows in 2008 will affect the dollar in 2011.
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Tuesday, March 08, 2011
Underestimating Lots of Money / Currencies / Fiat Currency
According to Harper's Index, the "estimated value of Chinese household income that goes unreported is $1.4 trillion."
To put it in perspective, the follow-up item is "Portion of China's GDP this represents: 1/3."
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Tuesday, March 08, 2011
U.S. Dollar Long-term Chart / Currencies / US Dollar
The weakness with this US Dollar DX index is that it is highly weighted to the developed economies of Europe and Japan. As such it may not reflect erosion of dollar purchasing power vis a vis the BRICs, and external measures such as gold, oil, and silver. It may be masked by the mutual weakness of central banks all inflating their currencies in unison.
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Tuesday, March 08, 2011
Currency Risk in South America – Brazil and Argentina Inflation / Currencies / Inflation
Inflation is beginning to rear its head globally. Demand for commodities worldwide is on the rise causing shortages and riots as countries attempt to deal with the problems associated with population growth and a rising, educated middle class. Regime changes across the MENA region are adding additional risk factors to the equation.
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Tuesday, March 08, 2011
Crude Oil and Gold Prices Surge as Speculators Bet Billions Shorting the U.S. Dollar / Currencies / US Dollar
Kerri Shannon writes: Oil reached a 29-month high (yesterday) Monday morning in London and gold hit an intraday record as investors sought to hedge against inflation and traders bet billions shorting the dollar.
Brent crude futures contracts in London gained 0.1% yesterday to close at $116.11 a barrel, pushed higher by the Middle East crisis disrupting the oil supply. Crude for April delivery was up 0.9% to $105.36 in Monday afternoon trading on the New York Mercantile Exchange (NYMEX).
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Monday, March 07, 2011
U.S. Dollar Index at High Risk of Unraveling / Currencies / US Dollar
I am sure that you are aware that the Dollar Index can't get a bid. This isn't news but a fact. The Dollar Index is in a down trend, and the question to ponder is: how low can it go? Looking at the price patterns, I believe the Dollar is at significant risk of unraveling.
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Thursday, March 03, 2011
Euro Nears $1.40 as Global Tensions Soften / Currencies / Euro
Major financial markets are reacting early Thursday (March 3) morning to word from the Arab League that it is seeking ways to end the crisis in Libya.
Heightened revolution and political tension in the Middle East has dominated global news during the last few months. It has also impacted speculation in many investment markets.
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Wednesday, March 02, 2011
Taps for the Dollar / Currencies / US Dollar
It now appears that the United States has finally succeeded in its efforts to destroy confidence in the U.S. dollar. Given the currency's reserve status, its ubiquity in financial markets, and the economic power and political position of the United States, this was no easy task. However, to get the job done Washington chose the right man: Fed Chairman Ben Bernanke. Thanks to Bernanke's herculean efforts, investors across the globe have now been fully weaned from their infantile belief that the U.S. dollar will remain the ultimate safe haven currency.
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Tuesday, March 01, 2011
Disasters Rocking U.S. Dollar? / Currencies / US Dollar
From earthquakes in New Zealand to revolutions in the Middle East, natural and man-made disasters are rocking the world. We are all too often made to believe that in times of crisis there’s a flight to the U.S. dollar. However, the U.S. dollar has instead had a rocky ride of its own thus allowing the crisis-ridden Eurozone to shine. What’s going on? Is there no crisis, or has the U.S. dollar lost its appeal as a safe haven?
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Tuesday, March 01, 2011
Did You Notice This Change in the U.S. Dollar? / Currencies / US Dollar
Dr. Steve Sjuggerud writes: Did you notice the U.S. dollar changed in the last few weeks?
I don't mean that it changed colors, has new security features, or has different words.
Tuesday, March 01, 2011
Is the U.S. Dollar on the Brink? / Currencies / US Dollar
Just take a look at the chart of the U.S. dollar Index and you see a frightening sight. If it sinks any further its support will have evaporated. We have watched all this week the gold price rise and look good in the dollar. But in the euro it has barely moved. Against the Swiss Franc the dollar looks so weak. With the Technical picture looking so poor, one turns to the fundamentals to see if they conflict or support a downturn for the dollar.
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Friday, February 25, 2011
NZD/USD Forex Bears Begin to Stir / Currencies / Forex Trading
After a good recovery last year, which still fell short of the major 2008 peak, the chart turned indecisive. One or two clues are appearing that suggest a period of weakness could now be seen.
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Wednesday, February 23, 2011
What's Behind the Currency War? / Currencies / Fiat Currency
Antony P. Mueller writes: In September 2010, a short time before the international financial summit of the Group of Twenty (G20) took place in South Korea, Brazilian finance minister Guido Mantega declared that the world is experiencing a "currency war" where "devaluing currencies artificially is a global strategy."
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