Looking ahead to 2011: some likely winners and laggards December 14, 2010 FROM sovereign debt crises threatening the very future of the euro to currency wars and more quantitative easing, 2010 has been an eventful year in the foreign exchange markets. Currency traders will be pleased to hear that volatility, which has been so characteristic of the FX markets since the crisis, is unlikely to disappear any [...]
EURO’S RALLY IS DEPENDENT ON THE DATA December 14, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT With the euro bears still fixated on sovereign debt problems, Monday’s 200 point rally in euro-dollar caught many currency traders by surprise and created a massive short squeeze. As Ireland appeared to be on its way towards finalising the EU bailout, risk aversion flows abated and credit spreads stabilised, leaving [...]
THE TIPSTER December 14, 2010 EURO-US dollar formed a bullish engulfing candlestick yesterday and in the process made a breakout from its recent downward trend. A break of the $1.3280 level was crucial and led to further buying with the cross back above $1.3400. The strength could continue following this move and in the run up to the meeting of [...]
FOREX ANALYST PICKS December 14, 2010 FOREX STRATEGIST ILYA SPIVAK My pick: Stay long dollar-yen Expertise: Global macro Average time frame of trades: 1 week-6 months I entered long dollar-yen at ¥83.08 in mid-November expecting the pair to rise along with US Treasury yields in the aftermath of QE2 after the $600bn increase in asset purchases matched traders’ expectations and opened [...]
Auditors are not watchdogs, they are bloodhounds on a tight leash December 14, 2010 HEAD OF POLICY, ACCA THERE are two sides to every story. This particular story concerns audit and its value to society. Are you sitting comfortably? “Extraordinarily self-satisfied” is how the former chancellor Lord Lawson described the suggestion by top auditors that there hadn’t been a failure of audit prior to the financial crisis. “You were [...]
Mining firms haul FTSE 100 to highest level in five weeks December 13, 2010 Strong miners pushed Britain’s top share index to a five-week closing high on Monday, buoyed by firmer metals prices on strong economic data from China, while sector consolidation moves gave oil services firms a fillip. The FTSE 100 closed up 47.80 points, or 0.8 per cent, at 5,860.75, its highest close since 9 November, albeit [...]
Chinese cheer fades across Wall Street December 13, 2010 The Nasdaq closed lower and ended eight straight days of gains yesterday while the Dow and S&P 500 ended flat as optimism faded over China’s move to tame its growth. The Dow Jones industrial average gained 18.24 points, or 0.16 per cent, to end at 11,428.56, well off its intraday high of 11,480.03. The Standard [...]
Anticipating the kinks in the road December 13, 2010 1 The Chinese economy has been driving the world’s growth for the last couple of years, but some economists are beginning to worry that it is overheating. Inflation hit 5.1 per cent in November according to the latest figures, with price increases especially intense in coastal cities. The Chinese government has been trying to damp [...]
DESPITE ALL US EQUITIES STILL CLIMB December 13, 2010 CFD MARKET STRATEGIST, GFT THERE has been a mixed reaction to the news that Congressional Republicans and President Obama have reached a deal to extend the Bush tax cuts. While a number of Democrats have expressed outrage that the cuts will continue for everyone, the package should be accepted. This helped lift US equities and [...]
THE TIPSTER December 13, 2010 WTI crude oil rallied some 150 points yesterday morning to highs around $89.40 on the back of relief over China not raising rates and positive demand forecasts. The technical picture is showing signs of crude topping out around this level and it may well be worth taking the short side of the market for this [...]