Dollar Struggles to Remain Strong!
The dollar has started to weaken against the euro since early Asian session, with the pair finally breaking important 1.4130 at the time of writing and printing yet another weekly high at 1.4160. The dollar has been weak mainly due to the risk appetite which has been seen all across the markets and especially in commodities, as oil has made another multi week high above $73. Stocks have been trading mixed however, with Europe down slightly so far, as UK‘s GDP printed a really negative number
Dollar indecision over good news and bad
It appears that the single most common forex theme is that investors will unwind dollar demand as the need for safety evaporates as and when the U.S. economy shows signs of improvement. This appears to be the gold standard view for currency activity as we see it. When there’s nothing going on, the bias is to sell dollars and wait. This appears to be the case around 90% of the time and one could call this the market’s bias. However, the remaining 10% of the time currency traders are treated to
Deja vu – same old inventory-led economic downturn
Many assumptions about economic and financial market performance have been shattered in the 2 years since the global credit market crisis started. Not least amongst these assumptions was the view that ‘lean production’ methods – including manufacturers keeping stocks to a minimum and producing on demand to customer specification – would reduce the impact of the stock or inventory cycle on economic growth. But this economic downturn has, as always, been led by investment cut backs and falls in
Frequently Asked Questions
There are many questions that new and experienced traders have on a routine basis. Instead of going over two or three questions in lots of detail, I thought I would change things up a big and go through a rapid fire short question and answer piece that offers my opinion which is based on my experience. This is all for educational purposes only and to specifically share my experience with common issues among traders and investors. What markets should I trade if I am new and don’t have the
Cable Testing Multi-month Highs amid Broad Dollar Weakness
Asian Market Update: Equities Extend Gains, Shrugging Decline in Japan Employment Sector and Australia Credit Conditions; Cable Testing Multi-month Highs amid Broad Dollar Weakness – Asian equity markets are trading firmer across the board, led by consumer service and oil names benefiting from weak currency impact in Japan and near multi-month highs seen in front-month crude. Nikkei225 led the advancers with a 1.9% gain going into midday break, while S&P/ASX and Hang Seng closely trailed
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