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FX Madness
Blog chronicles my trading in Forex market, with focus on currency pairs outside the US Dollar!
490 articles
What is Next for CAD-CHF'
From FX Madness, 7 month ago, Read 0 times. Similar articles
It has been a long time since I discussed the CAD-CHF on these pages. A quick look at the CAD-CHF as it is on the daily chart, where this pair is at a possible support point. After the huge rally to 0.9047, the CAD-CHF pulled back to 0.87 handle. This also happens to be right at already established bullish trendline. Prices often experience reactions under such circumstances and this situation could be similar.
The stochastic indicator is oversold, which suggests an advance soon, in principle...
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Another EU Rift.
From FX Madness, 7 month ago, Read 0 times. Similar articles
After showing brave faces and more or less united front on the Greek bailout for some time now, a new disagreement developed among the EU members. Some of the countries, seven by last count, now want the private sector to carry a greater burden of the bailout than previously agreed. In other words, countries like Germany and the Netherlands want banks holding Greek debt to absorb a larger chunk of the losses associated with operation. This proposal is running into heavy opposition from other...
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Currency Funds Underperforming in 2011.
From FX Madness, 8 month ago, Read 0 times. Similar articles
This year to date is proving to be difficult for large currency funds and given it is almost October, significant improvement is unlikely. The Barclay Currency Traders Index, a weighted composite of managed programs that trade currency futures and/or cash forwards in the spot market is negative so far this year. The 117 currency trading programs included in the index are down 0.29% through August, and chances are that the performance will get much worse before the end of 2011.
Most of large...
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Strange Twist in Real.
From FX Madness, 8 month ago, Read 0 times. Similar articles
Huge currency moves of the past few days brought some very interesting developments on the fundamental level. The meltdown in emerging markets caused a change of heart in some countries' policies. For example, Brazil, which had been complaining about the strength of the Real, all of a sudden found its currency too weak. During past couple of years, that Brazilian policy was to buy dollars, raise taxes on bond investors and impose trading restrictions. Few of days ago, though, their central bank...
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The G-20 Pledge.
From FX Madness, 8 month ago, Read 0 times. Similar articles
The Group of 20 developed and developing nations committed Thursday to “strong and coordinated” action to stabilize the financial system and shore up growth. In a statement issued after a dinner of finance officials in Washington late Thursday, the group committed to take all “necessary actions to preserve the stability of banking systems and financial markets as required.”
The group said it will ensure that banks are adequately capitalized and have sufficient access to...
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Trading Operation Twist.
From FX Madness, 8 month ago, Read 0 times. Similar articles
Busy day on Wednesday. Following heated speculation about what he might do, the FED's Chief Bernanke announced that the central bank will be extending the average maturity by buying treasuries with 6-y to 30-y remaining maturity and sell an equal amount of Treasury securities with remaining maturities of 3 years or less. This action has been dubbed “Operation Twist” (Operation Desperation), in recognition of similar steps taken back in the 60′s. The FED will commit $400...
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What Steps Will FED Take'
From FX Madness, 8 month ago, Read 0 times. Similar articles
There is considerable pressure mounting on the FED to do something about the ailing economy. This means that tomorrow, at the conclusion of the FOMC policy meeting, expectations will be high for some steps to be announced. The question is what steps' According to some observers, the interest rates could be lowered from the target of 0.0%-0.25% to flat 0.0%. Of course, this would be such small, symbolic change, that such course of action is unlikely. In order to
make a stronger statement, many...
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Another Weekend, Another Meeting'
From FX Madness, 8 month ago, Read 0 times. Similar articles
It seems like a deja vu ? another weekend and another meeting of EU finance ministers dealing with the Euro crisis. Last week in France, this time in Poland, as it they were on some traveling party circuit. If in a few days they gather again on Majorca or Capri, well, we will know what is behind it' The meeting in Poland was spoiled by a party crusher ? Tim Geithner showed up to lecture them. He brought a blueprint for how to create even more debt and ever widening budget gap.
EU finance...
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Euro Crisis is Alive and Well.
From FX Madness, 8 month ago, Read 0 times. Similar articles
The common currency is in the news again and not from a flattering angle. Just one day after a group of 5 central banks moved in to provide stability to the European banking system through liquidity, more concerns emerged. This time Germany’s ruling coalition government delayed discussing the European Stability Mechanism in cabinet, meaning that legislation on the euro-zone’s permanent rescue fund will not likely be in place by the end of this year as hoped.
The ESM is seen as...
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Not Enough Liquidity'
From FX Madness, 8 month ago, Read 0 times. Similar articles
In an unexpected move the ECB’s Governing Council has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These new dollar operations will be conducted in addition to the bank’s current weekly dollar swaps, according to ECB.
One would think that with all major central banks already...
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