US POLITICAL TURBULENCE HITS DOLLAR January 26, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT DURING times of stress in the markets, the dollar generally rises as risk averse investors flock to the safety of the world’s reserve currency. However, that dynamic could be reversed if the political problems in Washington are not brought under control. Last Friday, news that Fed chairman Ben Bernanke may [...]
Eastern Europe currencies will suffer as Greek crisis unfolds January 26, 2010 OBSERVERS of the Greece’s fiscal crisis might be forgiven for thinking that there has been little impact on other countries. The credit default swap markets – which measure the perceived risk of a sovereign debt default – have been remarkably well behaved, with the unsurprising exception of Greece. But if you look more closely at [...]
FX INVESTORS ANTICIPATE BAD NEWS January 26, 2010 MARTIN ARNOLD SENIOR ANALYST, ETF SECURITIES SENTIMENT in the foreign exchange markets has changed dramatically in recent days as investors increasingly question whether the strong price performance of risk assets in 2009 can be sustained in 2010. Indeed, of the major currencies, only the Japanese yen has appreciated in recent days as investors have unwound [...]
FOREX FLASH January 26, 2010 CHAVEZ ORDERS £93BN SALE OF DOLLARS Venezuelan president Hugo Chavez has ordered the first sale in six years of $93bn of dollar reserves in an attempt to shore up the recently devalued bolivar. Chavez has given the central bank orders “burn the hands” of speculators betting against the currency. Chavez said last week that he [...]
The Tipster January 26, 2010 YESTERDAY’S fourth quarter GDP figure for the UK was uninspiring. The main casualty was sterling. In just two hours following the announcement sterling-US dollar had dropped by 100 points, extending a decline that has been in place for the past week. But sterling could have fallen too far. There are still plenty of events that [...]
Mining and energy stocks drag the FTSE lower for the fourth day in a row January 25, 2010 BRITAIN’S top share index closed lower yesterday for a fourth straight session, dragged down by miners and energy stocks on continued market unease over the uncertain demand outlook. The FTSE 100 closed down 0.8 per cent, or 42.68 points at 5,260.31, having ended 0.6 per cent lower on Friday, pressured by financial issues following President [...]
Wall Street is boosted by support for Bernanke January 25, 2010 US STOCKS snapped a three-day slide yesterday as signs that Federal Reserve Chairman Ben Bernanke would win a US Senate vote for a second term helped ease investors’ concerns. After the closing bell, iPod maker Apple reported sharp gains in quarterly revenue and profit, sending its shares 1.9 per cent higher to $207 in after-hours [...]
Luxury brands sure to suffer as consumers trade down January 25, 2010 THE LUXURY brands sector finished 2009 on a high note. Luxury goods groups including Burberry, Richemont and Swiss watch-maker Swatch all reported strong sales growth in the last three months of the year and stock prices have duly headed north as consumers snapped up handbags, jewellery and watches to beat the recession blues. But there [...]
DON’T FORGET THE IMPACT OF POLITICS January 25, 2010 DAVID MORRISON CFD MARKET STRATEGIST, GFT LAST week equities hit a brick wall. The US fourth quarter earnings season has been a disappointment so far. Companies are finding that a decent result on the bottom line just won’t cut it with investors if revenues haven’t improved. Also, the actions taken by the People’s Bank of [...]
CFD ANALYST PICKS January 25, 2010 TECHNICAL STRATEGIST JOEL KRUGER My pick: Short FTSE at 5,500 Expertise: Technical analysis Average time frame of trades: 5-10 days Explanation: Last week’s recommendation – short FTSE – has worked and we are now fast approaching our objective. But we also realise that markets have been quite choppy, and with the index testing key rising [...]