We noted several weeks ago the Canadian Dollar would become more linked to the price of oil when Oil drops below $95 per barrel. This means the USDCAD could easily fall in price even more as oil falls further. Oil is now trading a remarkable $85 per barrel, and the Canadian Dollar has dropped significantly over the [...]
Oil and the Canadian Dollar, Together Again
May 10, 2012 by · Leave a Comment
Oil and the Canadian Dollar have a well known relationship. When Oil goes up, so does the Canadian Dollar. This correlation has been estimated to be extremely high during some time periods. The FXC shows this relationship very well, as does the USDCAD. Still, this correlation can change in strength - sometimes the Canadian Dollar does not respond as [...]
AUD Carry Trade Unwind To Hit AUDUSD
May 7, 2012 by · 1 Comment
The surprise in the currencies over the last month is the strength in the yen, despite the new 1% inflation target by the Bank of Japan. This inflation target should be a reason for a weaker yen, but instead has strengthened over the last month. The yen is only a few percent from it’s all [...]
One Big Reason the Yen isn’t 10% Weaker Right Now – Forex
May 7, 2012 by · Leave a Comment
The move weaker for the yen was sudden, shocking and happened over just 6 weeks. The Bank of Japan announced an new inflation target of 1%, a startling move because Japan had targeted zero inflation for decades. The yen responded with a huge, one way move. The yen lost almost 1% per week. Then the [...]
EURUSD: Capital In-Flows Vs. Spain Problems
May 2, 2012 by · Leave a Comment
Something strange is happening in the EURUSD. The investment community is freaking out about the debt problems in Europe, but the EURUSD is not falling in price. A few months back, I made the bold claim the solutions would drive the EUR lower - and how the link between Euro problems and the price level of the [...]
Short Covering Rally in the Pound Going on Right Now
April 23, 2012 by · Leave a Comment
The last few days has seen a breakout higher in the British Pound. The GBPUSD broke to higher highs, just over the 1.6050 level to the current price of 1.6106. I think this is big news, particularly because short interest is so high in the Pound. We could easily see a big rally as these [...]
Guide to Mastering the Forex Currency Markets
April 18, 2012 by · Leave a Comment
The first step in mastering the Forex currency market is knowing which currencies to trade… The Best Currencies to Trade The G-7 or “major” currencies are the best currencies to trade. These countries are the largest and most economically advanced in the world — and their currency markets are the most liquid on the planet. [...]
How to Easily Trade Currencies — On Any Budget
April 12, 2012 by · Leave a Comment
One of the most common myths about currency trading is that you need a huge trading account. This might have been true five or 10 years ago. But there are many new foreign exchange products out there that give you access to a lot of currencies… And you don’t have to be a “high roller” [...]
The Best Currency for a New America
April 11, 2012 by · Leave a Comment
(please note: this article is a reprint from an article by Michael Sankowski written for Smart Investing Daily) Commodities: The 21st-Century Currency You don’t have to look far to find terrifying headlines: The U.S. government — the most powerful institution in world history — will default on its debt next week unless the debt ceiling [...]
6 Secrets to Mastering the Forex Market
April 10, 2012 by · Leave a Comment
The first step in mastering the currency market is knowing which currencies to trade. The best currencies to trade The best currencies to trade are those of the countries with the largest and most economically advanced economies in the world. Not only are their currency markets the most liquid on the planet, a vast majority [...]
