News, remarks, commentary, analysis of Forex markets
The U.S. Dollar Index is a geometrically average of six currencies weighted against the U.S. dollar. The Federal Reserve created it in 1973, and the ICE USDX index is the trading vehicle. The index contains six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The euro replaced five European…
Trading with Elliott wave analysis (Here are Part 1 and Part 2 of this article.) Think of Investing as a Trip Here’s my advice: View the Elliott wave Principle as your road map to the market and your investment idea as a trip. You start the trip with a specific plan in mind, but conditions…
Trading with Elliott wave analysis (Part 1 of this article is posted here.) A Quick Road Map of Wave Analysis For this overview of wave analysis, I have borrowed from the “Cliffs Notes” version that we provide for free to anyone interested in learning about wave analysis. It’s called Discovering How To Use the Elliott…
Trading with Elliott wave analysis Some of the best stories about global positioning systems (GPS’s) are the weird detours they sometimes recommend to drivers. Just like some of the weird detours that financial markets can make you take when you think they would be better off going in a straight line either up or down,…
The US economy has been on a tepid recovery after the biggest recession since World War II. Lack of strong fiscal policy response due to the divided US government has put most of the burden on the monetary policy. Federal Reserve under Chairman Ben Bernanke has taken various steps to ameliorate the economy. Recently, in…
Dollar index monthly-chart: USD/JPY monthly chart: EUR/USD monthly chart:
The financial crisis in Europe is leading the global slowdown putting renewed pressure on the sovereigns around the world, many of them facing high debt-to-GDP ratio. Searching for a way to stimulate their economies many are running their mints at full capacity. But, every currency cannot depreciate against every other currency. This is throwing up…
According to Stock Trader’s Almanac, British pound has a tendency to form a seasonal bottom in the month of March with respect to the US dollar. This phenomenon is due to the financial adjustments that multi-national companies make at the end of United Kingdom’s fiscal year, which ends in March. Companies delay making money transfer…
European crisis has been raging for some time and last few weeks have been very hectic. It has been quite bearish for EUR/USD generally. However, some recent weekends have been much better for the currency pair. In the last few weekends there were some significant events or meetings or announcements, which had positive impact on…
Last month the Reserve Bank of Australia (RBA) cut rates by 50 basis points. If it cuts rates again in its June meeting on Tuesday, Australian banks may still not pass on the full difference to borrowers like last time. The market, on the other hand is rooting for a big cut. Financial markets, however, are already raising their bets that…
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