Good afternoon Dear Traders. Today at 16:00 (CET) we will see the consumer confidence and optimism index from the U.S. (IBD/TIPP). This index provides an assessment of economic policy, financial stability and business conditions in the light of consumer perception. The index is based on a survey of 900 respondents and that is why it … “USD/JPY squeezed in a triangle – potential upside break”
Month: March 2014
Aussie Slows Rally After RBA, Gets Help from Housing Data
The Australian dollar was rising yesterday, but slowed its rally against the US dollar and the euro after Australia’s central bank left the cash rate at the record low and said that the exchange rate is still high. The Aussie continued to rise against the Japanese yen. The Reserve Bank of Australia left its main interest rate at 2.5 percent. The RBA commented on the exchange rate: The decline in the exchange rate seen to date will … “Aussie Slows Rally After RBA, Gets Help from Housing Data”
Euro Drops as Political Stand-Off in Ukraine Persists
The euro was falling yesterday and maintained its losses today as the mounting tensions between Russia and Ukraine and threat of involvement of Western countries in the conflict made Forex trades stick to safer currencies. The euro declined against the US dollar, but was able to outperform the Great Britain pound. The shared European currency managed to erase losses versus the Japanese yen. It looks like Russia is growing the size of its military troops … “Euro Drops as Political Stand-Off in Ukraine Persists”
AUD/USD: Trading the Australian GDP Mar 2014
Australian GDP is the primary gauge of the production and growth of the economy. It is considered by analysts as one the most important indicators of economic activity. A reading which is higher than expected is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published on Wednesday at … “AUD/USD: Trading the Australian GDP Mar 2014”
Greenback Gets Boost from Ukraine Crisis
Risk aversion is running high right now, thanks in large part to concerns about what’s happening in Ukraine. Protests in Ukraine have led to the ouster of its president, and now Russian troops are moving in for “war games.” With concern that the region could explode, some Forex traders and investors are playing it safe. US dollar is gaining against its high beta counterparts right now, thanks … “Greenback Gets Boost from Ukraine Crisis”
Yen Profits from Geopolitical Risks
The Japanese yen advanced today as the escalating tensions between Russian and Ukraine threaten the global geopolitical stability, making investors to flee from riskier assets and seek a safe haven for their capital. The yen often profits from fears and uncertainty. And there is definitely a reason to be afraid now as some experts say that the political tension in the Eastern Europe may spark a new Cold War. Unsurprisingly, the ruble was down, while … “Yen Profits from Geopolitical Risks”
Bank of Russia Unable to Prevent Ruble’s Drop
The Russian ruble dropped today despite the surprise interest rate hike from Russia’s central bank as the country’s involvement in the conflict with Ukraine threatens to worse its international relations. The Central Bank of the Russian Federation announced today: The Bank of Russia Board of Directors decided to temporarily increase the Bank of Russia key rate to 7.00% effective from 11:00 Moscow time 3 March 2014. The decision is aimed at preventing the risks for inflation … “Bank of Russia Unable to Prevent Ruble’s Drop”
Currency wars could return as deflation threats loom
The spectre of deflation is making the rounds again and could become a major driver of forex activity and even spark a repeat of currency wars should policy makers decide to fight back with reflation programmes. Japan lived with consistent mild deflation for years until the government of Prime Minister Shinzo Abe decided that enough was enough. … “Currency wars could return as deflation threats loom”
Who are the Smart Money and what do they do?
All too often in my newsletter Market Tea Leaves I use and mention the term “Smart Money” and many times subscribers will ask what do you mean by this? Therefore I feel it is appropriate that I define this better. The Smart Money is for lack of a better term the institutional investors. They are … “Who are the Smart Money and what do they do?”
Forex Crunch Key Metrics February 2014
After a strong January, February was somewhat disappointing. Only a small rise over February 2013 was recorded in February 2014. Perhaps somewhat lower volatility after the big breakouts in January had an impact. Hopefully Yellen’s first decision and other market moving events will contribute to a strong March. Here are the numbers: Website; Page Views: … “Forex Crunch Key Metrics February 2014”