News, remarks, commentary, analysis of Forex markets
Reserve Bank of Australia (RBA) Board is set to meet on Tuesday June 5th and the decision will be announced at 2:30 PM local time (12:30 AM EST). This month, the impact of RBA’s cash rate decision and statement will be felt not only by the Australian equity market but also by its currency. RBA’s current cash…
Influential Australian business leaders are urging RBA to cut rates in its June 5th meeting: The chief economist at AMP Capital, Shane Oliver, who is pushing for the cut, said he did not expect it to be fully passed on to borrowers. “That’s one of the reasons the Reserve Bank should and will cut 50 points,” …
The bad news coming out of Europe is keeping euro from recovering part of its sustained decline against the greenback. The pair has been in oversold territory for quite some time. The 9-day RSI is still showing divergence but the pair is reacting more to Spain worries than to any chart pattern. This week, EUR/USD bounced up…
Past few weeks have been quite brutal for the single currency of the eurozone against the greenback. By Memorial Day, EUR/USD had declined everyday in May except for two. Now it seems that the pair may be setting up for a bounce. Since mid-February, EUR/USD has been forming a descending triangle. The lower boundary line…
Despite an economy that is sinking deeper in recession, British Pound has done quite well against the euro. One of the causes is the uncertainty about eurozone due to the Greek crisis. As Greece grapples with her debt and insolvency issues, the number of alternatives available to her is decreasing. One alternative is that she…
USD/JPY was in the midst of a potential saucer – or rounding bottom – pattern. However, the mysterious Yen has struck again in the aftermath of the news that ECB is stopping lending to some Greek banks and its President Mario Draghi signaled the ECB won’t compromise on key principles to keep Greece in the euro…
In recent times, one of the flight-to-safety trade in currency markets has been USD/JPY. When the market uncertainty goes up, JPY goes up against USD. USD made an all time low of 75.57 on October 31, 2011. It again came down to within 50 PIPs of this low in early Feb ’12 before rising up to 84.178…
After making an all time low of 71.05 in April ’08, Dollar Index bounced back up to 89.25 by November ’08, retracing between 78.6% – to -89% of the drop from the previous high of 92.53 reached in November ’05, arguably, driven by the fear trade in the aftermath of ’08 financial crisis. For the…
Van Eck doesn’t really break out the specific debt holdings in its Market Vectors Indian Rupee fund INR (quote), but it’s clear that the portfolio was structured better than India’s currency is faring in the money markets. The other rupee fund, WisdomTree’s ICN (quote), is in an equally impressive position, up 3.83% year to date.…
The RBI’s dramatic step had some effect – the rupee gained against the dollar in early trading – but economists said such stop-gap measures will only work as quick fixes, and without concerted efforts by Delhi toward fiscal consolidation and reform, the rupee is unlikely to recover to a more comfortable Rs50 against the…
You must be logged in to post a comment.