The G20 summit is due on Thursday. The US and the UK tend to call for a global stimulus plan while Germany wants to slow down. Will money be spent? Who will spend? And how will the forex market move? Heads of state from the top 20 industrialized nations are getting together in London, on … “G20 Summit – To Spend Or Not To Spend?”
Category: Opinions
Top 5 Dollar Downers
Here are 5 major macro economic reasons that weigh heavily on the US dollar: Obama’s stimulus package – spilling lots of money into the economy – devaluation of the dollar. FOMC Statement – Printing $1 trillion dollars instantly – dollar devaluation yet again. Toxic Asset Plan – Geithner’s plan will come mostly from the public … “Top 5 Dollar Downers”
Cable Should Go Down
GBP/USD had a nice rally in the past week. It happened despite bad fundamentals. It seemed to have reached the ceiling but still hasn’t fallen. It should go down. The British economy saw lots of bad figures lately. Clairmount Count Change was very disappointing last week. It recorded 138,000, much more than early expectations. This … “Cable Should Go Down”
FOMC Statement Impact – One Week After
A week ago, the FOMC released a stunning statement, that meant printing $1 trillion dollars. This shocked the forex markets, and sent the dollar down. Some called it a death sentence for the greenback. One week after, let’s review where the buck is going. On Wednesday, Match 18th, the Federal Open Market Committee released its … “FOMC Statement Impact – One Week After”
Aussie Settling Above 0.7000
AUD/USD encountered short term resistance on the psychological 0.70 level, but with the help of Philip Lowe, RBA assistant governor, it now trades above this level, looking up to major resistance. AUD/USD, one of my favorite currency pairs, began the forex trading week with a weekend gap of about 60 pips. During the Asian and European … “Aussie Settling Above 0.7000”
American Housing Is Above The Bottom
Existing Home Sales in the US were better than expected, and better than last month. This adds to last week’s housing data that also gave some hope. Is there a house at the end of the tunnel? American Existing Home Sales in the US stood on 4.72 million in February. Early expectations were for a … “American Housing Is Above The Bottom”
Toxic Asset Plan – Toxic for the Dollar
Timothy Geithner is due to present the plan to relieve US banks from toxic assets. While this is intended to be a Public-Private plan, funding this scheme may, yet again, result in printing US dollars – sending the greenback down. It already happens now, before the announcement. US Secretary of Treasury, Timothy Geithner, is due … “Toxic Asset Plan – Toxic for the Dollar”
Forex War – Will Europe Join?
In this deep economic crisis, everyone wants a weak currency. Europe’s export-oriented economy is suffering from a strong currency, especially after the moves from Switzerland and from America. Will they stay on the sidelines or intervene? The Japanese economy is export based, and has significantly suffered from the global economic crisis. A strong currency is … “Forex War – Will Europe Join?”
EUR/GBP Bounced on Resistance Line
EUR/GBP tested the 0.95 resistance line and bounced back down. This came on the background of falling Industrial Production in Europe and stablization of the dollar selling. EUR/GBP tried breaching the 0.95 resistance line, which was the high point in the end of December. The EUR/GBP reached a high of 0.9475 before retracting significantly back to … “EUR/GBP Bounced on Resistance Line”
Aussie Reached Initial Target – Resting Before Next Move
AUD/USD continues it’s march upwards, breaking the 0.68 resistance line. It rose on the wave of massive dollar selling that began with the shocking FOMC statement yesterday. The next resistance line is much stronger for the Aussie. AUD/USD was trading in a narrowing channel for a very long time. Downtrend resistance and uptrend support were … “Aussie Reached Initial Target – Resting Before Next Move”