I was on CNBC Squawk Box Australia last night talking about the outlook for the Japanese Yen as well as the European currencies:
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This technical video takes a three-year chart of the EUR/GBP pair to analyze the long-term trades. The result may be useful not only for the long-term trades but also can hit for the some short/medium-term perspectives for this currency pair.
Posted on Forex Video Zone.
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My favorite forex trade right now is shorting AUD/NZD.
After hitting a 9 year high of 1.3124 last week, the rally in AUD/NZD is losing steam. I should have posted about this earlier, but I think there is still room for the currency pair to fall.
Last week, the Reserve Bank of Australia raised interest rates by 25bp to 4 percent but hinted that from here on forward, they will begin to slow down their pace of tightening. Having already doled out 80 to 90 percent of their planned rate hikes, the focus will now turn to the RBNZ who has not even started to raise interest rates. Granted, the Australian economy is doing far ...
These two videos describe the concept of the support and resistance price cycles that work in all financial markets. This is an important lesson of the technical analysis for all traders and especially for those who often rely on the levels of support and resistance in their Forex trading.
Posted on Forex Video Zone.
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The U.S. labor market report was released this morning and the data was much better than everyone had anticipated. Following the warning from Larry Summers that the storms in the Northeast could have swelled unemployment rolls, investors were bracing for the worst. However disaster was averted and Larry Summers will probably not be forecasting payrolls again anytime soon having embarrassingly caused a stir in the financial markets (but then again Summers is never one to be embarrassed easily). As I wrote yesterday, Summers did not have the NFP report on hand when he gave the warning which was clearly the case as payrolls fell a mere 36k.
There has been alot of analysis published on the ...
The U.S. labor market report was released this morning and the data was much better than everyone had anticipated. Following the warning from Larry Summers that the storms in the Northeast could have swelled unemployment rolls, investors were bracing for the worst. However disaster was averted and Larry Summers will probably not be forecasting payrolls again anytime soon having embarrassingly caused a stir in the financial markets (but then again Summers is never one to be embarrassed easily). As I wrote yesterday, Summers did not have the NFP report on hand when he gave the warning which was clearly the case as payrolls fell a mere 36k.
There has been alot of analysis published on the ...
Aside from the fact that Lawrence Summers, who is Obama’s Economic Advisor was a former Treasury Secretary, what does he really know about last month’s non-farm payrolls report? On the eve of the February NFP release, we wonder loudly how accurate his prediction of a snow-storm related bulge in unemployment really is.
Earlier this month, Summers came out of no where to warn that “The blizzards that affected much of the country during the last month are likely to distort the statistics.” This prompted economists to jump out and say that the snowstorms could inflate job losses by an extra 150,000 to 220,000.
Caroline Baum of Bloomberg did ...
Earlier this month, Summers came out of no where to warn that “The blizzards that affected much of the country during the last month are likely to distort the statistics.” This prompted economists to jump out and say that the snowstorms could inflate job losses by an extra 150,000 to 220,000.
Caroline Baum of Bloomberg did ...
Aside from the fact that Lawrence Summers, who is Obama’s Economic Advisor was a former Treasury Secretary, what does he really know about last month’s non-farm payrolls report? On the eve of the February NFP release, we wonder loudly how accurate his prediction of a snow-storm related bulge in unemployment really is.
Earlier this month, Summers came out of no where to warn that “The blizzards that affected much of the country during the last month are likely to distort the statistics.” This prompted economists to jump out and say that the snowstorms could inflate job losses by an extra 150,000 to 220,000.
Caroline Baum of Bloomberg did ...
Earlier this month, Summers came out of no where to warn that “The blizzards that affected much of the country during the last month are likely to distort the statistics.” This prompted economists to jump out and say that the snowstorms could inflate job losses by an extra 150,000 to 220,000.
Caroline Baum of Bloomberg did ...
The WSJ and the Financial Times are crediting the drop in the British pound to the upcoming election. Worth a read though I still think that its more than just politics because politics have been in the background for the past few months. If you haven’t read it yet, read my piece on 5 Reasons Why the British Pound is Being Pounded
The political debate has also turned darker now that the quagmire that would be caused by a hung Parliament is considered a realistic possibility after the coming elections. In such a scenario, the winning party still doesn’t have sufficient Parliamentary support to carry out its legislative agenda without help from other parties.
Read entire WSJ Article - ...
Here’s another timely story from the Wall Street Journal. Forex markets are in a doozy today with speculation of another possible ratings downgrade for Greece. A bunch of Greek banks were already downgraded earlier this week. However Spain could be the next straw to break:
Greece set off the crisis rattling the euro zone. Spain could determine whether the 16-nation currency stands or falls.
The euro zone’s No. 4 economy, Spain has an unemployment rate of 19%, a deflating housing bubble, big debts and a gaping budget deficit. Its gross domestic product contracted 3.6% in 2009 and is expected to shrink again this year, leaving Spain in its deepest and longest recession in a half-century. Continue ...
