It was in November 2010 that I last blogged about the South Korean Won. As a result of the standoff with North Korea and a recent flareup in the Eurozone sovereign debt crisis, the Won had plummeted. Still, I viewed these as temporary problems and concluded that, “Ultimately, both the EU fiscal crisis and the tensions with North Korea will subside, which should cause the Won to resume its rise.” Since then, the Won has indeed risen by more than 8% against the US dollar. Rat
Archive for April, 2011
Outstanding credit debt sounds like a nightmare. No one would like to repay more than he or she owed but it is impossible to avoid with rising interest rates. Such a situation is enough to force people spending excited nights. Fortunately, if one does not think about the amount he or she will have to repay there are credit consolidation services available to all desperate borrowers.
Allocation of debt is a routine in which the debtor and creditor to agree on the volume for an assignment of an existing debt legally. Full post…
Sometimes I wonder if I’m living in the clouds. All of my recent reports on the Canadian dollar were twinged with pessimism, and I argued that it would only be a matter of time before reality caught up with theory. While the continued surge in commodities prices has confounded everyone’s expectations, other economic trends continue to work against Canada. In other words, I think that there is still a strong argument to be made for shorting the loonie.
To be sure, the rally in commodities prices has been incredible- nearly 50% in less than a year! Oil
NEW YORK (MarketWatch) — Treasury prices extended gains and the dollar continued paring losses on Thursday after a report showed manufacturing in the Philadelphia area slumped more than forecast this month. A separate report said home prices fell in February. Yields on 10-year notes /quotes/comstock/31*!ust10y UST10Y 0.00% , which move inversely to prices, fell 3 basis points to 3.38%. The dollar index /quotes/comstock/11j!i:dxy0 DXY +0.09% , which measures the U.S. unit against a basket of major rivals, fell to 74.020, down from 74.384 in late North American action on Wednesday. The euro / Full post…
Over the last year and increasingly over the last few months, Central Banks around the world have taken center stage in currency markets. First, came the ignition of the currency war and the consequent volley of forex interventions. Then came the prospect of monetary tightening and the unwinding of quantitative easing measures. As if that wasn’t enough to keep them busy, Central Banks have been forced to assume more prominent roles in regulating financial markets and drafting economic policy. W
Propelled by economic recovery and the recent Mideast political turmoil, oil prices have firmly shaken off any lingering credit crisis weakness, and are headed towards a record high. Moreover, analysts are warning that due to certain fundamental changes to the global economy, prices will almost certainly remain high for the foreseeable future. The same goes for commodities. Whether directly or indirectly, the implications for forex market will be significant.
First of all, there is a direct impact on trade, and hence on the demand for particular currencies.
Today, we bring you an interview with Mike Kulej of FXMadness. Below, Mike shares his thoughts about the effectiveness of technical analysis, volatility, leverage, and more!
Forex Blog: I am intrigued by the fact that your blog is deliberately focused on “the exciting world of Forex outside the dollar.” Is there a strategic reason for this choice?
At the time when I started the blog, everybody was talking about the Euro, the Pound, the Yen, so there was a lot of information available regarding the so-called “majors”. In princ
DOLLAR INDEX: Pressure Builds On The 74.17 Level.
DOLLAR INDEX: Having invalidated two of its key support levels at the 76.67/12 levels and its 2011 low at 75.24, further downside risk is now developing.In such a case, downside pressure should target the 74.17 level, its 2009 low with a breach aiming at its 2008 low at 71.31. We are likely to see a further decline if that level is taken out. Its daily studies are bearish and pointing lower supporting this view. Alternatively, on pullbacks, the 75.24 level will be targeted at first with cut through that level opening the door for more recovery towards the 76.12 level. Full post…
HONG KONG (MarketWatch) — Chinese Premier Wen Jiabao made renewed calls for price stability over the weekend, saying the central government would take the lead in controlling liquidity as part of efforts to prevent excessive price rises and economic flux, according to state-media reports. Wen said local authorities would shoulder responsibility for property-tightening measures and that supply and prices would affect the health of economic growth and social stability, the official Xinhua news agency reported.
Forex traders have very suddenly tilted their collective focus towards interest rate differentials. Given that the Dollar is once again in a state of free fall, it seems the consensus is that the Fed will be the last among the majors to hike rates. As I’ll explain below, however, there are a number of reasons why this might not be the case.
First of all, the economic recovery is gathering momentum. According to a Bloomberg News poll, “The US economy is forecast to expand at a 3.4 percent rate this quarter and 3.3 percent rate in the second quarter.” More importantly, the unemployment rate has finally begun to tick down, and recently touched an 18-month low. While