Well… Friday I took off and I guess the currency traders did too, for the bloodshed in the currency and precious metals on Friday was akin to Custerâ€™s Last Stand at Little Bighorn! I checked in late in the day, and had to turn the screen off, I couldnâ€™t bear to watch it! Iâ€™ve always told you that those kinds of days can be very volatile with wild swings in prices due to the low volume and not everyone being on the trading desks… Well, Friday was one of those days… The selling began when there was discussion that, while Ireland looked as if it could get their aid package/bailout, Portugal or Spain could be next in line… And then the you-know-what hit the fan, and before you could say pass the stuffing one more time, the selling begot more selling…[Read more...]
On November 19, the Peopleâ€™s Bank of China ordered the countryâ€™s banks to increase their reserves by an additional 0.50%. Itâ€™s the second time in two week the Bank has boosted reserve requirements as it tries to keep the value of the yuan down.
But it wonâ€™t be enough. The yuan will continue surging despite these latest efforts, creating a tremendous opportunity for anyone who missed out the last time around â€” even if youâ€™re not a global currency investor.[Read more...]
The currencies are much weaker this morning, after digesting the G-7 decision on Saturday, and all the saber rattling with China… But in the real scheme of things, I would suggest to you that this weakness is nothing more than correcting a â€œtoo far, too fastâ€� move by all the currencies following the FOMC meeting on Sept 21st.[Read more...]