In this section we explain how economic fundamentals indicators, such as interest rates, influence FX rates.
It has been a tough couple of weeks for FX strategists out there. Just when it looked like the risk trade was back on- it was back off again! Read more >>
I’ve been wanting to write about the Chinese Renminbi for some time but each week I ultimately figure what’s the point? With its pegged structure it’s as good as untradeable! Read more >>
As the lyrics say in Yazz’s famous song “The Only Way is Up” many an economist would have you believe the same is true of US bond yields. Money printing leads to inflation which leads to higher interest rates they will tell you. Read more >>
The EURO, which has been batted against other major cross currencies, has been given a reprieve after the European Union announced it was going to bail out the Greek economy for the second time. The second bailout is again expected to top 100 Billion EUROs. Read more >>
There have been lots of articles doing the rounds this week about Central Banks diversifying away for the US dollar. Read more >>
As markets have gotten increasingly volatile in recent weeks and talk of Global Financial Crisis (GFC) Mark II gets louder once again with a default by Greece being likened to Lehman Brothers collapse in 2008, I ponder whether the safe haven status which the USA enjoyed back in 2008 and 2009 would be repeated a second time around. Read more >>
Last week I pondered Europe’s multitude of troubles and the effects it would have on the Euro currency and further whether this may offer the possibility of a profitable trade in shorting the Euro. Read more >>
As the famous German mathematician Carl Jacobi used to say “Invert, always invert”. And so this week I ponder the somewhat rhetorical question of what’s stopping me from an all out bet against the Euro? Read more >>
By: Friday Fundamentalist My inspiration for this week’s article is thanks to Jeremy Gratham’s April 2011 Letter which carried the title “Time to wake up: Days of abundant resources and falling prices are over forever.” Read more >>
You won’t find out by reading Berkshire Hathaway’s 2010 Annual Report that Bueffet made $100M from FX trading, however, if you happened to be lucky enough to attend the recent Warren Buffett talk fest in Omaha Nebraska Read more >>
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