A new government came into power in the last days of 2011. Prime Minister Rajoy announced new taxes and fresh cuts. Europe’s fourth largest economy has a much lower debt pile than Italy and enjoys lower yields. Yet Spain faces a recession. It will be hit hard during the winter which is low season in … “European Cliff Hanger – Spain”
Category: Opinions
Dollar Is Headed Even Lower In Coming Weeks
A sharp fall from 81.80 area seen in the past few weeks is impulsive, which means that we have a temporary top in place, likely of a wave I, which was an expanding diagonal. That is type of a motive wave, where structure allows overlap between waves four and one. With this being said, at … “Dollar Is Headed Even Lower In Coming Weeks”
NZD/USD: Trading the New Zealand Building Consents
The New Zealand Building Consents indicator, released monthly, measures the change in the number of new building approvals issued. It is one of the most important indicators for the construction sector. A reading which is higher than the market prediction is bullish for the New Zealand dollar. Here are all the details, and 5 possible outcomes for NZD/USD. Published on Monday at 21:45 … “NZD/USD: Trading the New Zealand Building Consents”
European Cliff Hanger – Italy
Italy is becoming too similar to Greece: unsustainable debt, a technocrat government run by an ex-banker and slow moves on reforms. Yet contrary to Greece, Italy is too big to bail. And contrary to Greece, Italy’s problem is mostly a liquidity problem rather than a solvency problem. Italy can certainly avoid PSI, IMF intervention and … “European Cliff Hanger – Italy”
European Cliff Hanger – Greece
Europe certainly remains in the limelight during Q1 2012. The Greek debt crisis began at the end of 2009 and has spread to other countries. Apart from countries, European banks are also on the edge. Nothing is secure and trust is hard to find. How long can this leg dragging continue? Perhaps we will see … “European Cliff Hanger – Greece”
EUR/USD:Trading the US GDP
The United States GDP, released quarterly, is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity, and a reading which is better than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at … “EUR/USD:Trading the US GDP”
US Primaries Season and the Dollar
The United States entered an election year. I’ll try to keep the debate focused on the impact on the economy and the dollar, without diving too deep into American politics. The question for the dollar is the level of uncertainty. If the picture will clear up, this will help the dollar, while high uncertainty will … “US Primaries Season and the Dollar”
USD/JPY: Trading US New Home Sales
The New Home Sales Report is released towards the end of every month. A leading economic indicator, it is considered by analysts as an important measure of consumer spending. A higher reading than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for JPY/USD. Published on Thursday at 15:00 GMT. Indicator Background … “USD/JPY: Trading US New Home Sales”
Robust US Recovery to Keep Fed Doves Low
The composition of the Federal Reserve has undoubtedly changed in favor of the doves. However, the strong recovery in the US, and the already loose monetary policy will likely remain unchanged. David Song of DailyFX discusses the Fed, China’s landing, Spain’s edge over Italy, Britain’s safe haven status and one currency which still has a … “Robust US Recovery to Keep Fed Doves Low”
American Reverse Decoupling
The US managed to continue growing throughout 2011 while the rest of the world slowed down. The 2008 financial crisis gave birth to the “decoupling” theory where China continued growing rapidly while the West was sinking. Indeed, while China and other Asian countries were slowing down during the end of 2011, and while Europe most … “American Reverse Decoupling”