What To Look At In The Market
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Tuesday, August 9th, 2011With global markets in turmoil, the intervention that the BOJ took to attempt to weaken the Yen last week was ineffective. Looking at the chart, USD/JPY is right back to where it started in less than a week. As the flight to safety trade persists, old habits die hard and money is pouring into the [...]
Forex Outlook 8/9/11
Tuesday, August 9th, 2011The markets appear to be “stabilizing” for the time being after yesterday’s massive sell-off, the 6th largest down move for stocks in the history of the markets. Oil has pulled back as well, though gold is sky-rocketing to new daily highs, reaching just under $1780. There is obvious fear in the marketplace, and what started [...]
Euro Tests Resistance At 1.44!
Monday, August 8th, 2011The immediate reaction at the open of the currency markets yesterday was to sell US dollars in response to the S&P downgrade of US credit. This proved to be short-lived, however as this induced risk aversion which prompted teh flight to safety trade which, ironically, means buying US dollars. In addition to this counter-intuitive logic, [...]
Forex Outlook 8/8/11
Monday, August 8th, 2011This morning the markets are responding reasonably well after Friday’s S&P downgrade of the US. The beleaguered ratings agency, who some say was largely responsibly for the banking crisis of 2008 dropped the US from AAA to AA as they forewarned if serious deficit reduction wasn’t agreed to in the debt ceiling debate. While stocks [...]
Non-Farm Payrolls Better Than Expected!
Friday, August 5th, 2011Well folks, it loos like we have dodged a bullet this morning with the release of teh US NFP report which showed a gain of 117K jobs vs. an expectation of 85K. As I have been saying all week, the bar had been lowered so it was not as great a hurdle to clear. If [...]
Currency Outlook 8/4/11
Thursday, August 4th, 2011The moment the market had been waiting for arrived last night in the form of Bank of Japan monetary easing and intervention. This comes a day after the SNB eased rates in Switzerland in an attempt to weaken the Swiss franc. As a result, the US dollar has been strengthening, despite the weak economic picture [...]
Bank of Japan Intervenes–Finally!
Thursday, August 4th, 2011As I wrote on Tuesday, the Bank of Japan could intervene on Thursday, and sure enough they did! Yen weakened overnight vs. all of the majors as the BOJ eased monetary policy. Recent Yen strength due to risk aversion in the markets has made it more difficlut for Japanese exports, so any relief they can [...]
Forex Outlook 8/4/11
Thursday, August 4th, 2011The moment the market had been waiting for arrived last night in the form of Bank of Japan monetary easing and intervention. This comes a day after the SNB eased rates in Switzerland in an attempt to weaken the Swiss franc. As a result, the US dollar has been strengthening, despite the weak economic [...]
SNB Surprise Rate Cut!
Wednesday, August 3rd, 2011The Swiss National Bank (SNB), tired of recent Swiss franc strength dut to safe-haven demand popped a surprise rate cut on the markets in an attempt to weaken the franc as discourage speculators from buying. This is essentially a “warning shot”, trying to send the message that the SNB will intervene further if necessary. It [...]
Forex Outlook 8/3/11
Wednesday, August 3rd, 2011Talk about a disappointment! Yesterday, the markets tanked after the US Senate approved the debt-ceiling deal in a sign that once again, Washington can’t do anything right. All that was accomplished was essentially kicking the can down the road (yeah I said it) so that we can resume this debate in a few months. [...]
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