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 Source: Advanced Currency Markets | G10 Advancers and Decliners vs USDGBP-0.03 EUR-0.13 CHF-0.16 JPY-0.28 Asian markets performance was slightly higher with a slight rebound in risk appetite. Nikkei gained 0.26%, Shanghai SE Composite 0.30% and the ASX 200 0.67%. With Chinese PM Wen reassuring the markets saying that growth remains a priority, the CNY fixed at 6.3116, 93pips lower than Friday’s level and undershooting the 6.3130-75 range of expectations. The JPY weakened overnight against its major...
Source: ForexYard
Facebook IPO Fails to Make a Dent in the Marketplace
Following weeks of speculation regarding how Facebook's debut on the New York Stock Exchange would turn out, investors were mildly disappointed with the social media site's performance on Friday night. Facebook closed out the week at 37.96, slightly below its opening price. What direction Facebook takes from here is a hotly debated topic among market analysts.
 Source: Advanced Currency Markets | G10 Advancers and Decliners vs USDJPY-0.01 GBP-0.27 EUR-0.34 CHF-0.35 Market sentiment is highly bearish across the board as Moody's investor services confirmed the downgrade of 16 Spanish banks, and Fitch downgraded Greece yesterday from B- to CCC. The degradation of the rating should not have impacted because Greece was already considered junk at its previous level. Safe haven USD index continued its climb to a four month high at 81.
Source: ForexYard
EUR Avoids New 4-Month Low
While the euro remained bearish against its main currency rivals throughout yesterday's trading session, it avoided falling to a new four-month low against the US dollar. The marketplace was unusually calm, as a bank holiday in Europe resulted in limited movements among the most traded currency pairs. As we close out the week, traders will want to note that another slow news day may result in low liquidity in the marketplace.
 Source: Advanced Currency Markets | G10 Advancers and Decliners vs USDCHF0.20EUR0.09JPY-0.03 GBP-0.06 Risk appetite returned marginally in the Asian session as the fear driving Greece headlines tampered off. Given the uncertain overhang in Europe, we suspect the recent recovery in FX markets is more a function of consolidation rather than reversal in expectations. EURUSD was range-bound between 1.2736 to 1.2750, while USDJPY fell to 80.26 in light trading. In a subdued session, Asia’s regional...
Source: ForexYard
Higher Yielding Currencies Maintain Bearish Trend
Higher yielding currencies, namely the EUR and AUD, remained bearish during European trading yesterday, as fears that Greece will have to leave the euro-zone led to risk aversion in the marketplace. Investors are now worried about what the possible effects of a Greek exit from the euro-zone would be for other indebted countries, including Spain and Italy.
 Source: Advanced Currency Markets | G10 Advancers and Decliners vs USDGBP-0.20 JPY-0.26 EUR-0.29 CHF-0.30 In reaction to news of the failed talks with president Karolos over the formation of a coalition government for Greece yesterday afternoon, the EUR dipped to its lowest level in four month, the positive economic data out of Germany notwithstanding. The European situation combined with the sharp decline in Japanese Machinery Orders by 2.8% and a stagnation of Australian consumer confidence near...
Source: ForexYard
Greek Political Impasse Leads to Euro Losses
The euro started off yesterday's trading session on a positive note following a better than expected German Prelim GDP figure which caused the EUR/USD to advance to 1.2868. That being said, the common currency came under pressure later in the day following another failed attempt by Greek politicians to form a new government, virtually guaranteeing new elections will take place next month.
 Source: Advanced Currency Markets | G10 Advancers and Decliners vs USDEUR0.19CHF0.18GBP0.09JPY-0.02 The Yuan fell against the USD reaching 6.3181 at 06:00 GMT, as Chinese foreign direct investment declined for a six consecutive month. The falling FDI is compatible with a series of economic data such as last week's worse than expected Fixed Asset Investments and a feeble trade balance missing its import and export targets by a long shot. As can be expected, FDI from the European Union declined...
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Recent News
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Natural Resource-Related Stocks Show Promise: Frank Barbera
The Gold Report: Europe is in the headlines daily: more leftists coming to power, regional banks suffering, renewed recession appearing to take hold. What is your take on Europe?
Frank Barbera: In the headlines, Europe looks like quite the mess. Imagine being a Greek who saved over a lifetime now facing the possibility of devaluation or Greece leaving the euro. If Greece pulls out of the euro and devalues, most of the people will see their life savings collapse in terms of purchasing power.
In my view, there is a pretty good chance that would spark a contagion. When people in Spain or Italy see Greece pull out and return to a devalued drachma, there will be . . . → Read More: Natural Resource-Related Stocks Show Promise: Frank Barbera
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Natural Resource-Related Stocks Show Promise: Frank Barbera
The Gold Report: Europe is in the headlines daily: more leftists coming to power, regional banks suffering, renewed recession appearing to take hold. What is your take on Europe?
Frank Barbera: In the headlines, Europe looks like quite the mess. Imagine being a Greek who saved over a lifetime now facing the possibility of devaluation or Greece leaving the euro. If Greece pulls out of the euro and devalues, most of the people will see their life savings collapse in terms of purchasing power.
In my view, there is a pretty good chance that would spark a contagion. When people in Spain or Italy see Greece pull out and return to a devalued drachma, there will be . . . → Read More: Natural Resource-Related Stocks Show Promise: Frank Barbera
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Dr. Frankenstein’s Europe
"Had I right, for my own benefit, to inflict this curse upon everlasting generations? I had before been moved by the sophisms of the being I had created; I had been struck senseless by his fiendish threats; but now, for the first time, the wickedness of my promise burst upon me; I shuddered to think that future ages might curse me as their pest, whose selfishness had not hesitated to buy its own peace at the price, perhaps, of the existence of the whole human race."
– The musings of Dr. Frankenstein about his creation of a monster, in Mary Shelley’s 1818 novel, Frankenstein
And later the monster answers:
"Shall each man," cried he, "find a wife for his . . . → Read More: Dr. Frankenstein’s Europe
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The People Have Spoken and Precious Metals Will Soar: Leonard Melman
TGR: It seems that economists can plan and recommend, and politicians can negotiate and maneuver, and pundits can analyze and predict all they want, yet when the people don’t want to play along, it can all mean nothing. Of course, we’re talking about the elections in France and Greece. What’s going on?
Leonard Melman: What’s going on is that the monetary authorities in Europe have decided that austerity is the only way out of the financial dilemma, which I find kind of amusing, because it is their Keynesian activities that created those policies in the first place. Their decision now is that austerity, which is cutting back government programs, is the only thing that will work. The problem is . . . → Read More: The People Have Spoken and Precious Metals Will Soar: Leonard Melman
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Are JPMorgan Chase ETNs Safe?
I don’t know about you, but here in Texas I can barely drive a mile without passing a JPMorgan Chase (JPM) branch. They’re even inside the grocery stores.
Simply being everywhere doesn’t make a bank safe, of course. As we learned last week, traders in London just cost JPMorgan $2 BILLION and possibly more! Fitch Ratings downgraded its credit rating one notch to A-plus, and it looks like Moody’s may cut the bank, too.
Weiss Ratings, ahead of the curve as usual, cut JPMorgan Chase to “D” on September 30, 2010. And on October 22, 2010, they issued a special news release advising subscribers that among U.S. banks, JPMorgan was carrying the largest . . . → Read More: Are JPMorgan Chase ETNs Safe?
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