In this section we explain how economic fundamentals indicators, such as interest rates, influence FX rates.
We haven’t mentioned Mr Eric Sprott yet in our weekly Friday Fundamentalist take on global FX markets however this week we rectify that. For readers who are unaware of Sprott he is a Canadian Hedge Fund Manager with around $10 Billion in funds under management who has been and continues to be a massive bear on the global economic outlook. Read more >>
The always readable and affable Bill Gross from Pimco was back this week with an instalment of no less than 3 new articles hitting the web. One which caught our eye here at FX Strategy was titled ‘The Euro may fall – and take the U.S. recovery with it’. Read more >>
For those of you who are not familiar with the two most famous economists of the 20th century, John Maynard Keynes and Milton Friedman had competing theories about how economies should be managed in times of crisis. Their theories are still at the forefront of almost all major economies in one way or another. Read more >>
Last week exciting murmurings started to hit the airwaves via Reuters and CNBC regarding a change in Chinese authorities FX policy. These rumours were confirmed on Thursday when the China Foreign Exchange Trade System (CFETS) announced that from Monday the 28 November 2011 they would introduce the following currency pairings: CAD:CNY and AUD:CNY. Read more >>
The bond vigilantes have sharpened their knives since my previous article in October “All Eyes on the Euro”. Yields are reaching dangerous levels and investors are dumping Italian and Spanish bonds while previously untouched triple-A countries including France and Belgium have begun to come under pressure too Read more >>
It appears that the risks for the AUD are to the downside and commentators are tipping that the AUD will break below parity with the USD within days with one well known commentator suggesting a year end target for the AUD of USD$0.96. Read more >>
Obviously all things Euro are front and centre for traders at the moment and rightly so. And hopefully FX Strategy members are profiting handsomely from the volatility – keep an eye on the daily video updates for lots of in depth advice. Read more >>
Things have gone real bad in Europe for a very long time. The issues in Greece and Italy are a legacy of bad financial policy over a number of years. But change is in the air. Read more >>
Pairs involving the Euro have remained relatively steady following Silvio Berlusconi’s announcement that he is planning to quit once the austerity plans in Italy have been formalised. Markets are taking their time to digest the news with an initial small rally towards the Euro, followed by a pullback in morning trading in Europe today. Read more >>
Historically, big business has used traditional FX brokers to place such hedging strategies. Brokers have been seen as the only alternative to placing large scale trades in liquid markets. However, more and more companies are now using forex trading platforms Read more >>
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