Currencies
Tide is Turning for the Aussie
2 August 2011 – 11:15 pm PST
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“Australia is about to enter a boom that should last decades…The Australian dollar is unlikely to go back to where it was, and manufacturing will shrink in importance to the economy, perhaps even faster than it has been.” This, according to Martin Parkinson, Treasury Minister of Australia. While 30 years from now, Mr. Parkinson’s prognosis [...]
Continue reading...Emerging Market Currencies Brace for Correction
2 August 2011 – 11:14 pm PST
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“It was the spring of hope, it was the winter of despair,” begins Charles Dickens’ The Tale of Two Cities. In 2011, the winter of despair was followed by the spring of uncertainty. Due to the earthquake/tsunami in Japan, the continued tribulations of Greece, rising commodity prices, and growing concern over the global economic recovery, [...]
Continue reading...NO QE3: What are the Implications for the Dollar?
2 August 2011 – 11:14 pm PST
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The verdict is nearly in; there will be no QE3. The second round of quantitative easing (“QE2”) will expire at the end of this month, and while it will not be unwound for quite some time, the Fed has indicated that it will not be followed by yet another round. The question on the minds [...]
Continue reading...Swiss Franc is the Only Safe Haven Currency
2 August 2011 – 11:13 pm PST
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According to conventional market wisdom, there are three safe haven currencies: the Swiss Franc, Japanese Yen, and US Dollar. It is to these currencies that investors flock whenever there is a crisis, or merely an outbreak of uncertainty, and for much of the period following the collapse of Lehman Brothers, the three were closely correlated. [...]
Continue reading...Is it Possible to Trade Forex Part-time?
2 August 2011 – 11:13 pm PST
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This week, I came across an article in the San Francisco Gate (which, incidentally, has really ramped up its forex coverage over the last year) that addressed this very topic. Given that part-time forex traders probably outnumber those that practice the craft full-time, such an article was long overdue. In sum, the author advises part-time [...]
Continue reading...Japanese Yen In “No Man’s Land”
2 August 2011 – 11:12 pm PST
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This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it [...]
Continue reading...Forex Volatility Continues Rising
2 August 2011 – 11:12 pm PST
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This week witnessed another flareup in the eurozone sovereign debt crisis. As a result, volatility in the EUR/USD pair surged, by some measures to a record high. Even though the Euro rallied yesterday and today, this suggests that investors remain nervous, and that going forward, the euro could embark on a steep decline. There are [...]
Continue reading...Euro Nears Breaking Point
1 August 2011 – 10:06 pm PST
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It’s deja vu all over again in the forex markets as another twist in the sovereign debt crisis has sent the euro tumbling by the greatest margin in nearly a year. It was only last month that I posted “The Euro (Still) has a Greek Problem,” and yet, forex markets are once again reacting to [...]
Continue reading...Pound Stagnates, Lacking Direction
13 June 2011 – 9:23 am PST
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The British Pound has struggled to find direction in 2011. After getting off to a solid start – rising 4% against the US dollar in less than a month -Â the Pound has since stagnated. At 1.625 GBP/USD, it is now at the same level that it was at five months ago. Given the paltry [...]
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2 August 2011 – 11:15 pm PST
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