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Loonie and Aussie Share Downward Bond 1 Jul 2011 | 03:15 am
In yesterday’s post (Tide is Turning for the Aussie), I explained how a prevailing sense of uncertainty in the markets has manifested itself in the form of a declining Australian Dollar. With today’s ...
Tide is Turning for the Aussie 30 Jun 2011 | 04:40 am
“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 fast...
Emerging Market Currencies Brace for Correction 28 Jun 2011 | 08:42 pm
“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 earthqua...
NO QE3: What are the Implications for the Dollar? 26 Jun 2011 | 01:28 am
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 ...
Swiss Franc is the Only Safe Haven Currency 24 Jun 2011 | 04:11 am
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,...
Is it Possible to Trade Forex Part-time? 23 Jun 2011 | 04:17 am
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 for...
Japanese Yen In “No Man’s Land” 21 Jun 2011 | 02:52 am
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 governmen...
Forex Volatility Continues Rising 18 Jun 2011 | 03:38 am
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...
Euro Nears Breaking Point 17 Jun 2011 | 02:33 am
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 ...
S&P 500 Decouples from Euro? 15 Jun 2011 | 03:58 am
While I have written quite about forex correlations in recent posts, the focus has primarily been on correlations that exist between currencies. In this post, I would like to address a correlation tha...