The BBC reporters are speechless when interviewing this Trader and he says exactly what is on his mind:
“The Collapse Is Coming…And Goldman Rules The World”.
Are you following the what the trader says, taking advantage of the possible Euro and stock market crashes, and see this an opportunity to invest in the more stable currencies or are you waiting for this to go away?
After losing ground for 13 months in a row, USD is about to break out and gain momentum against both euro (EUR) and sterling pound (GBP), according to technical analysts.
Why is USD gaining ground?
Many European countries economy is weak, with Portugal getting downgraded by Moody’s and Greece are having big problems paying their debt. Italian stock market fell almost 9 % previous week over yield spread concerns.
In fear of rising inflation, ECB increased the interest rates last week, without any positive effect on the exchange rates.
Both USA and British economies remains week, but not as bad as the Eurozone.
What do you think about EUR, GBP and USD? Will USD gain significant against sterling and the single currency?
IMF recently told the press they fail to see any underlying fundamental factors giving the Yen any strength. According to International Monetary Fund, the current value of the Yen reflects long-term fundamentals. So basically, they mean that the Yen is still overvalued against USD and rest of the G7 countries.
Surprising G7 intervention against Yen
Last week, seven central banks from the G7 countries joined together in an effort to weaken the Yen. After the earthquake, the Japanese Yen has been traded stronger, in contrast to what you would expect.
Currency traders also claim that the Yen strengths is partly due to corporations, insurance firms and private people sending money back to Japan.
What do investors buy in Japan right now?
It seems like Japanese investors mainly focus on the (more…)
As we previously predicted it became inevitable for Bank of Japan (BOJ) to hold back its plans for intervention. JPY/USD went from 83 yen per dollar to 85.47 shortly after the intervention.
Strong yen – harmful for Japanese economy says Noda
Early this morning (9:30 ET) Yen reached a new 15-year high. This time, Bank of Japan was quick to intervene in the currency markets, selling yen in exchange for us dollars, after a week of possible intervention warnings. This intervention was made to counter the adverse impact of the strong yen, and was the first official intervention in the currency market since 2004.
“We conducted the intervention in order to avoid excessive movement in the currency market. The Bank of Japan will continue to (more…)
The outlook for US Dollar have been going down, down and down against the Yen. Is it time for a turn-around soon?
New Economic Slowdown?
After the latest key U.S economic data was released, investors was first seriously concerned about the US economy showing, when July showed 27 % slowdown of previously owned U.S homes. But later, many forex investors insted became worried about the world economy instead and dollar started to rise again against many major currencies.
At the same time, Nikkei 225 rose to a 15-month low, while the Japanese currency become even stronger – 84 yen per USD. Yen is currently at its strongest value against USD this decade. Lets see how things move forward in the end of the week.
RBA, The Reserve Bank of Australia, decided on Tuesday to keep the interest rates unchanged for the third month in a row. We continue to see strong numbers for Australian employment and growth, and expect AUD to continue being strong against the USD with many carry traders moving to the pair (USD/AUD).
Strong growth among Australia’s trading partners
Economic data for the June quarter indicate strong growth, around 6 %, for Australia’s major trading partners. China, Japan and Korea had a stronger growth than expected, while the US economy grows less than expected.
Economic conditions in Australia
First, the Australian labour market has continued to show more jobs, while employment increased by over 46 000 jobs in June, growing 3.25 % since (more…)
After reaching 6 month high last week, pound sterling is now falling to it’s lowest lever in more than a week. Reason: Data signals Britain is not recovering as quick as expected.
Housing market slows down
The first decline in property prices appeared in July, showing a slower sales growth then previous months. Sterling fell to $1.5740 in London afternoon trading hours.
Analysts such as John Hydeskov, Danske Bank, believe Sterling is overbought and should have a correction. He suggest buying Norwegian krone instead..
The Canadian Dollar is advancing against it’s major trading partners, in particular USD.
For the first time since April (2010), CAD is heading towards 1.0 in exchange rate with the USD. Rising commodity prices and any unexpected rise in unemployment or inflation can easily make the Canadian Dollar stronger then the American dollar.
So, when Do you think the Canadian dollar will be stronger then the American counterpart, if ever?
After a few days of discussions, many observers believe Tories and Liberal Democrats are forming a coalition government in United Kingdom. Currency analysts are now relieved that Gordon Brown seems to step down as Labours leader from September this year.
The new government are likely to cut borrowing sooner then a Labour government would and in general, it should do well for the economy and the british currency. Forex analysts already predict a hung parliment between conservatives and liberal democrats and they seem to like it – pound sterling rose by almost 1 % today. Interest rates (more…)
Today we cover two interesting currencies which seen increased volume in the last 6 months – Australian dollar against the U.S. Dollar. Here is a brief currency forecast from a technical analyst point of view.
AUD/USD – Short-term
Over the next 48 hours, make sure to keep track of the following resistance and support levels:
-Resistance to AUD/USD: 0.9190-06, 0.9228, 0.9276-90 and 0.9404
-Support for AUD/USD: 0.9136, 0.9118, 0.9050-75 and 0.8997
Although there is support for the currency pair around 0.9118, the possibility for a break through the resistance at 0.9228 remains. In the short term, most of the leading forex analysts believe in a bullish move, ie. Australian to U.S. dollars strengthened against the USD.
The Dollar ended the week with monthly records against its major six rivals, indicating a broad strenght of the US currency.
Major investors and forex analysts expect that recent stronger economic data will prompt FED to higher interest rates sooner the earlier expected.
Stronger data supports the US dollar
The recent series of stronger data are shifting to support the dollar. “At least from an interest-rates perspective,” said Mike Moran, senior forex strategist at Standard Chartered Bank in New York. (more…)
