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RISK AVERSION TRADE CONTINUES TO DRIVE FX PRICES
The trend of risk aversion persists with the dollar weaker against most of the majors. The EurUsd gained a little over 100pips to the low 1.30 price area, while the UsdJpy increased nearly 50 pips to the mid range of 92. The GbpUsd increased nearly 60pips trading through the previous resistance of 1.48. Equities are trading higher in the US, which was consistent with the positive move in European stock indexes. Bond yields are still compressed below normal levels, with the 2yr at .85% and the 10yr at 2.6%. Commodities rallied across the board seeing strong gains in energy and…
10Dec2008 | Advanced Currency Markets | 0 comments | ContinuedUS SESSION: GOVT. BAILOUT PROVIDES SHORT TERM EUPHORIA, STILL ROOM FOR ADDITIONAL MARKET TURBULENCE
The dollar was battered in intraday trading as the market reacts to the announcement of another US Govt. bailout. The EurUsd rose sharply by 190pips to the high range of 1.27, while the UsdJpy is mostly flat slight under 97. The GbpUsd rose over 70 pips finding resistance near 1.50 as risk aversion eases in the marketplace. Equity futures are pointing higher in the US, following the trend of European stock indexes with the FTSE up 175pts or 4.6% and the DAX up 141pts or 3.4%. Commodities are consistent with the bias towards risky assets in early trading, oil is…
24Nov2008 | Advanced Currency Markets | 0 comments | ContinuedGold Price Rebound
Gold: Cheap as Chips…?
The sharp drop in world gold prices starting in late July knocked the cost of physical metal more than 20 percent off its record top of mid-March at last week’s low point.
That level — just above $750 per ounce — also happens to sit right where the uptrend starting in Sept. 2005 now lies. Meaning, for technical analysts at least, either a test (and perhaps collapse) of the bull market…or a screaming opportunity to buy gold on the cheap.
Whichever way prices now move from here, however, it’s worth considering the typical shape of a year in the…
20Aug2008 | Whiskey and Gunpowder | Comments Off | ContinuedPound Sterling Plummets as the Chance for a BOE Rate Cut Improves
The British pound fell to a 22-month low yesterday (Wednesday), after the Bank of England (BOE) offered a gloomy outlook for the U.K. economy and the chance of an interest rate cut increased.
The pound fell to $1.8656 yesterday – its lowest level since October 2006 – from 1.8968 the day prior. The British currency has fallen 5.4% against the dollar so far this year, and 7.6% against the dollar since the end of July. The pound is down 7.5% against the euro this year.
The decline has been prompted by a perceived shift in BOE policy, as many analysts…
14Aug2008 | Money Morning | Comments Off | Continued
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