Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Wednesday, February 06, 2008
Win-Win Economics February 2008 - Alternative Money and Recession Relief / Currencies / US Dollar
In This Issue:
In the News: Alternative Money
February Feature: Fourth Corner Exchange Bellingham, Washington
Quote of the month: Charles Mackey, 19th century Scottish journalist - “Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”
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Sunday, February 03, 2008
Ben Bernanke Declares War on the US Dollar! / Currencies / US Dollar
Jack Crooks writes: It's hard to believe that the greenback could get any worse off than it already is, but the Federal Reserve looks dead set on doing everything in its power to punish the buck even more.
Witness the Fed's latest actions ...
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Sunday, February 03, 2008
Gold to Soar in EURO's, as ECB Set to Track US Dollar Lower to Avoid Recession / Currencies / Euro
All markets, in their search for a reliable formula that satisfies the scientific and mathematical belief that market relationships are precisely measurable in something else, believe that gold is responding in an opposite way to the $. The corollary to that is, therefore it must be moving in synch with the €? In fact, in the € it has been rising. It is important to look a little more closely at this formula and the realities behind it.Read full article... Read full article...
Friday, February 01, 2008
Remaking the US Dollar from the Bottom Up / Currencies / US Dollar
Marco Saba, a researcher at the Italian Center for Monetary Studies and author of a critical book about banking titled "Bankenstein" (2006) took the time to write me about the dollar at the beginning of last year. Mr. Saba?s field of expertise is seignorage (monetary rent), macroeconomic evaluations and central banking.
For those of you unfamiliar with Mr. Saba, his work has led him to the belief that the current monetary system is in need of reform. In fact, the sheer radical-ness of the idea is akin to throwing the baby out with the bath water.
Wednesday, January 30, 2008
Central Bank Hypocrisy - Fighting Inflation AND Debasing the Dollar / Currencies / Central Banks
Inflation targeting is yet to be formally adopted by the Federal Reserve (Fed), but recent market and Fed actions already prove that it is a failure. At the whim of trouble in the markets, Fed Chairman Bernanke has made it clear that he is inclined to flood the markets with liquidity at any cost; he said: “We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.”Read full article... Read full article...
Wednesday, January 30, 2008
Stock and Financial Market Forecasts 2008 - Currencies - Part 3 / Currencies / Global Financial System
Introduction
This is the master thread to which all economic analysis must be held up due to the fiat monetary systems practiced UNIVERSALLY around the world. Just like a game of musical chairs, or rearranging the deck chairs on the titanic everyone will go down sooner or later. The central reality is that Currencies don't float, they just sink at different rates .
Currencies are no longer backed by gold or silver and are no one else's liability; they are all now IOU's and are the liability of the central bank and country that issues them. The principle reserves of the world's central banks consist of other country's promises to pay (currency and bonds). As we all know, public servants rarely deliver on their promises, and their “promises to pay” are made of the same timber.
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Monday, January 28, 2008
US Dollar Continuing Rally or Fresh Lows? / Currencies / US Dollar
Jack Crooks writes: Forecasting market tops and bottoms is a mug's game. In reality, the best we can do is trade with confidence when the time is right.
In fact, I've learned the key to long-term market success isn't just about winning trades ... it's about limiting what you lose during the times you are wrong. And I think the single best way to control your risk is by holding two opposing views of the market in your mind at the same time.
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Saturday, January 19, 2008
Housing Bubble Bursts, Subprime Loans Implode, Recession Coming - Buy the YEN! / Currencies / Japanese Yen
Jack Crooks writes: I wish I had a dollar, or maybe a euro, for every time an analyst equated the current subprime mortgage crisis to the Asian financial crisis, and every time the housing bubble was likened to the tech bubble.
With the "R" word threatening in 2008, analysts and economists find themselves turning to earlier events for guidance.
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Wednesday, January 16, 2008
Fed Plays Russian Roulette with US Dollar - Stoking the Fires of Stagflation / Currencies / US Dollar
In an age where governments of every political stripe distort data to promote their own self interests, it's hardly surprising that they present inflation data in a manner that is best suited to their particular needs. By the same token, it's entirely natural for official inflation data to be wildly at odds with the reality that is faced by consumers and businesses, and to be regarded with utter disbelief.So it wasn't shocking to hear Federal Reserve officials insist last week, that inflation in the United States is under control, before telegraphing another tidal wave of liquidity injections into the US economy in the months ahead. “Stable inflation expectations give the Fed a lot of room for maneuver. If the evidence suggests that substantial policy easing is appropriate, I don't think we're going to face a risk of adverse inflation consequences,” said St Louis Fed chief William Poole on Jan 9th.
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Sunday, January 13, 2008
US Dollar and British Pound Both Heading Down! / Currencies / US Dollar
The housing market in the United States is collapsing. It's no longer a secret. Nor do you have to be an economist to see how the real estate contagion is taking its toll on the broader American economy.
Heck, the evidence of an economic slowdown was already piled high, and last Friday's jobs report was the cherry on top of the whipped cream!
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Friday, January 11, 2008
Israeli Shekel Currency Forecast 2008 / Currencies / Israel
Dear Readers ( especially Israeli Readers ), Since Dec 2006? our target for SHEKEL was 3.78 Dollars Per Shekel . Congrats, we have arrived. As I write this post Shekel Stands Exactly at 3.78! Now, we expect the SHEKEL to have some more strength and TOP at 3.50 - 370 area within two weeks of JEWISH PASSOVER April 21 2008 . This was the time aimed initially as well. Shekel will decline for 2-3 years thereafter with inital target 4.50(2009) and 4.80(2012) . TA-100 will suffer considerably as foreigners start taking their money home, but could be helped later by weak SHEKEL.Read full article... Read full article...
Thursday, January 10, 2008
Currency Forecasts 2008 - Protracted Selling of the British Pound / Currencies / US Dollar
A likely major FX theme of 2008 is already being playing out; Protracted selling in the British Pound, broad strength in the Australian dollar and continued rally in gold. We had described the British pound as the likely "dollar of 2008" and so far it hasn't disappointed. GBP drops to new all time lows against the euro, 8-month lows against the dollar, and 10-year lows against the Australian dollar. The latest catalyst to sterling's gloom is a decline in consumer confidence a 13-month low, decline in job placements to a 54-month low, and 2.2% decline in like for like Christmas sales from major retailer Marks & Spencer.Read full article... Read full article...
Thursday, January 10, 2008
Impact of US Dollar Inflation and Devaluation - ILLUSION, MYTH AND MAGIC / Currencies / US Dollar
THE DOLLAR HAS LOST OVER 97% OF ITS PURCHASING POWER SINCE 1913 (THE FOUNDING OF THE FEDERAL RESERVE 94 YRS. AGO).
What does it look like when we convert U.S. benchmarks of value to other THINGS over the past 8 years?
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Sunday, January 06, 2008
US Dollar Stealth Devaluation Leading to Hyper Inflation / Currencies / US Dollar
Wow, what a start to 2008! So far in 2008, both the Wilshire 5000 (which is essentially the entire U.S. stock market) and the S&P 500 have lost all their gains from the entire year of 2007 in just the first three trading days of 2008. Gold set a new record high , Thursday intraday and closing, at 872.90 and 869.10 respectively. Oil hit $100 a barrel for a moment intraday Wednesday, for the first time ever . The HUI Amex Gold Bugs Index enjoyed an 11.83 percent pop the first three trading days of 2008. Sweet. Treasury Bonds rose 2 points , closing inches from 118.00. The Dollar got carved up , falling into the 75's.Read full article... Read full article...
Sunday, January 06, 2008
US Recession - Friday Unemployment Bombshell and How to Trade The Dollar / Currencies / US Dollar
Jack Crooks writes: Recession is the operative word for the U.S. economy right now. The housing market is already there. And various other economic indicators are pointing straight down. Just look at the latest data that came out this week ...
The ISM Manufacturing Index report showed that 10 straight months of expansion came to a screeching halt in December. The measure contracted the most since 2003, and was much weaker than everyone expected.
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Monday, December 31, 2007
British Pound Currency Forecast 2008 - GBP Headed Sharply Lower Against Strong Japanese Yen / Currencies / British Pound
Jack Crooks writes: First, and most importantly, I hope you're closing out a happy, healthy and prosperous year. And I wish you the best in everything that 2008 brings.
When the markets are as exciting and nerve-racking as they've been this past year, it becomes increasingly difficult for us to look beyond the headlines. But if we are to profit, we must persist.
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Friday, December 28, 2007
US Dollar Forecast 2008 - Determines Trend for Stocks, Bonds and Commodities / Currencies / US Dollar
It's all about the Dollar (again)
Even to the casual observer it's now apparent that the financial world is one giant see-saw. On the one side of swing is the once Almighty Dollar and on the other side is every other investable asset class.
Wherever the Dollar goes in 08, stocks, bonds and commodities will head the other way.
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Sunday, December 23, 2007
British Currency Ready for a Pounding! / Currencies / British Pound
Throughout the year, we've told you why the U.S. dollar was weakening. The reasons are many, and most of them are still relevant.
But as 2007 winds down, I want to tell you what could be next year's biggest trend: Some other currencies feeling similar pressures. You see, the credit crunch is expanding, and so is the list of vulnerable parties.
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Thursday, December 20, 2007
British Pound Plunges on Record Trade Deficit / Currencies / British Pound
Sterling already reeling from the credit crunch hitting the financial sector hard, tumbled again today on news of the biggest trade deficit since the aftermath of Nigel Lawson's late 1980's boom which was followed by early 1990's bust. The trade deficit soared to £20billions for the third quarter, in large part the credit crunch is to blame as investment income flows out of the worlds financial centre in London, whereas usually the case is for a healthy surplus. The deficit as a proportion of GDP amounts to 5.7%, and is way ahead of city estimates of 3%.Read full article... Read full article...
Wednesday, December 19, 2007
US Dollar Rally to Terminate Under Weight of Inflation / Currencies / US Dollar
Old man winter definitely arrived last night (for the second time this year, dumping around 6 inches of snow on the Peg. Each snowflake by itself is nothing in weight, but collectively represent a significant amount of weight that can pack down and form glaciers that may not move mountains, but definitely carve a path. Think of each USD as a snowflake, which by itself is nothing. Collectively though, the trillions of USD similar to the snowflakes blanketing a city are instead blanketing the globe. This creates a real slippery situation that causes accidents left and right, even for those that are conservative drivers. Snowploughs (AKA Central Bankers) can clean up and move the snow, but it merely is removed. Allow for a strong wind and the snowflakes are blown all over the place, creating huge drifts in areas where there once was nothing.Read full article... Read full article...