We have had two very different trading sessions in the past 24 hours, with the dollar benefiting from continued worries about Greece and Goldman Sachs in yesterday’s US trading session; but Asia saw things a bit differently and started moving money back into ‘risk’ assets. Early trading in Europe mirrors the moves in Asia, so the dollar is heading lower as I turn on the screens this morning.
[Read more...]Greek Spending Cuts Lead to Civil Unrest
March 4, 2010 By Leave a Comment
What a day the currencies had yesterday! The euro (EUR) gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step… Now… There’s two ways to look at this… Either the euro is like a star that’s getting ready to burn out… (It always shines brightest before it burns out), or… It’s like a star that had been covered up by another planet, and is coming back into view!
[Read more...]GDP and Dollar Growth: It’s All Happening in Australia
March 3, 2010 By Leave a Comment
I have to say front and center this morning, that while it may have taken the currency traders half a day to realize that Australia had raised rates, they finally began pushing the Aussie dollar (AUD) higher versus the green/peachback. I was beginning to think that I would have egg all over my face again, when the Aussie dollar didn’t respond right away… But it was all right on the night.
[Read more...]Canadian Economic Growth to Spur Early Rate Hike?
March 2, 2010 By Leave a Comment
Here we go again. The Canadian dollar is rapidly approaching parity with the US variety.
In the last five trading days, Canadians have collectively grown almost 4% richer compared with their slovenly southern neighbors. Over the last 12 months, the loonie is up 22% versus the greenback. At this rate, we won’t be able to tell people when we head off for Vancouver: “Canada, it’s just like the US…only less.”
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US Deficit to Reach 100 Percent of GDP?
The Japanese have a new Prime Minister (Kan), and the currency markets don’t like it! The once so-called “safe haven” of yen (JPY), is getting sand kicked in its face, and rightly so, as the new PM has previously stated his goal of a weaker yen.
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