Housing Starts and Building Permits were better than expected in the US. The real estate market, that began the crisis with the subprime crisis, might start to stabilize, giving new hope for the greenback. Building Permits rose by 3% to 547K (annually adjusted). This was the first good surprise. Expectations were for 500K. And the … “Has American Housing Reached the Bottom?”
Category: Opinions
Danger for Dollar After Obama Relates to Treasuries
President Barack Obama publicly addressed China’s deep concerns to America’s ability to pay its debt. American debt has become scary to everyone. Chinese Prime Minister Wen Jiabao publicly asked if America could pay back its debt. China is biggest holder of US treasuries, and its hundreds of billion of dollars. With the growing debt, and … “Danger for Dollar After Obama Relates to Treasuries”
AUD/USD In Narrowing Channel – Break is Close
The AUD/USD is trading between an uptrend support line and a downtrend resistance line, and it will soon have to break somewhere. Fundamentals say the direction is up. Technical: As seen in the graph below, the AUD/USD is closed by a downtrend resistance line than began with a high in September, was formed in a … “AUD/USD In Narrowing Channel – Break is Close”
Obama’s Stimulus Bad For Dollar, Good For Economy
The stimulus package delivered by Obama spills a lot of money into the US economy. Printing of money devalues the currency, but I do believe that this pro active and extreme measures will get America out of the crisis quite fast. I’ve written in the past that the stimulus package will weaken the dollar, due … “Obama’s Stimulus Bad For Dollar, Good For Economy”
EUR/GBP Broke Downtrend Resistance
EUR/GBP made a strong move upwards, and broke resistance on the daily chart. Terrible Manufacturing Production in Britain pushed the Pound lower, while other currencies gained against the greenback. Parity now? Yesterday’s bad banking news from Britain pounded the pound. This was especially seen in the GBP/USD currency pair, as the Pound fell below 1.40, … “EUR/GBP Broke Downtrend Resistance”
Forex Getting the Deserved Attention
In the Forex market, there’s always a currency that goes up. That’s why I like this market so much. In these times of crisis, it’s the best market for investing your money. New data shows that more and more money enters the forex market in an amazing speed. This shows that everybody is giving forex … “Forex Getting the Deserved Attention”
Bad British Banking News Risks the Pound
Lloyds TSB, the biggest mortgage bank in Britain, was nationalized this weekend by the British government. This is bad news for the British Pound. HBOS “inherited” the bad assets to Lloyds, and now it pays the price. The British government now guarantees the banks money, but the bank, which was once successful, is now in … “Bad British Banking News Risks the Pound”
NFP Effect Roundup
Non Farm Payrolls were in line with the official expectations – a fall of 651K jobs, but the affects on the forex market were fascinating, and can teach us some things for the next release. Let’s walk through the market alleys and find some precious currency correlations: Official expectations were a drop of 647,000 jobs … “NFP Effect Roundup”
EUR/USD and USD/JPY Breakouts this Week?
Both the EUR/USD and the USD/JPY went in favor of the dollar last week, but didn’t make the big breakouts. This first week of March, with heaps of economic figures, could make them break out. From noon on Thursday, expect 24 hours of wild price action. EUR/USD The most popular pair, EUR/USD, went down last … “EUR/USD and USD/JPY Breakouts this Week?”
Inflation Becoming Irrelevant in Forex
Inflation data, that is published all the time is becoming less and less important in these days of a global economic crisis. It doesn’t ignite price action as it used to up to the last summer. Up to the summer of 2008, Consumer Price Index (CPI) and Producer Price Index (PPI), played a big role … “Inflation Becoming Irrelevant in Forex”