DOLLAR’S FATE IN THE HANDS OF MR TRICHET May 3, 2011 AT THE start of this week’s trade in the currency market, the much beleaguered dollar received an unexpected lift when President Obama announced that a top notch team of Navy Seals was able to find and kill Osama bin Laden. However by the North American open, most of the patriotic sentiment had faded and the [...]
THE TIPSTER May 3, 2011 THURSDAY’S Bank of England meeting is likely to see the Monetary Policy Committee leave interest rates unchanged, especially in light of yesterday’s April Manufacturing PMI data, which came in below expectations. This has reinforced concerns about the growth potential for the second quarter. This will in turn limit the upside in any sterling strength, especially [...]
Protests, earthquakes, wars and bailouts. But no love for the dollar May 3, 2011 THROUGHOUT 2011, we have had sustained periods of uncertainty in the money markets. In the past, uncertainty and turmoil have given rise to rallies for the greenback as a result of investor flight into the safety and liquidity of this safe haven currency. Continued turmoil in the Middle East, concerns over the ongoing European sovereign [...]
A Conservative win is good for Canada’s dollar May 3, 2011 THE Canadian dollar climbed yesterday as Canada’s Conservative party won an outright majority in the general election. Since 2006, Prime Minister Stephen Harper has led two minority Conservative governments, but yesterday’s victory brings him a majority mandate. Michael Gregory, senior economist for the Bank of Montreal, is buoyant about the result: “This is certainly a [...]
FOREX ANALYST PICKS May 3, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Long euro-sterling, short euro-Canadian dollar Expertise: Fundamental and Technical Analysis with Risk Management Average time frame of trades: 1 day to 1 week My long dollar-yen position from ¥82.50 tripped its stop with a close below ¥80 with the dollar’s pervasive sell off. In the meantime, with the forthcoming [...]
US stocks slip after bin Laden bounce gives way to fears May 2, 2011 US stocks slipped yesterday, as an early bounce on Osama bin Laden’s death gave way to questions around the longevity of the market’s recent rally. The impact of bin Laden’s death by US forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response. The Dow swung 92 points [...]
European stocks at two-month high May 2, 2011 EUROPEAN shares made slight gains in thin holiday trade yesterday, as merger deals and news of Osama bin Laden’s death helped push the market to a two-month closing high. Shares in Demag Cranes rose 24 per cent after US construction machinery maker Terex Corp unveiled a $1.3bn hostile bid for its German rival. Meanwhile Danish [...]
Managing your great trading expectations May 2, 2011 NEW traders often have unrealistic expectations about how much they can make and how quickly it takes to learn to trade. In reaching for the stars, it is easy to crash and burn. Starting off slowly, purposeful risk management and realistic measures of success will all help. Elliott Winner of London Capital Group thinks that [...]
GOLD PRICES ARE IN THE FED’S HANDS May 2, 2011 ODD things can happen to financial markets in shortened holiday weeks – and I’m not only referring to the death of Osama bin Laden. Typically, volumes are light as there are fewer market participants. Often, these quieter periods are used as a cover to push out unpalatable news items. China has often used an extended [...]
What bouncing dead cats can teach traders about markets May 2, 2011 WHEN it comes to free-falling stocks, as the adage goes, if you can keep your head while all around you are losing theirs, you have probably failed to properly grasp the situation. However, when the market starts to dive, you should keep an eye out for stock prices to do what has long been known [...]