DOLLAR DROP COULD WELL BE OVERDONE October 12, 2010 OVER the past month euro-dollar has been in a near-vertical uptrend, rising more than 1,000 points in just 22 trading days. But now that the pair has reached the psychologically important 1.4000 level, it may be due for a pause as positioning becomes grossly overstretched. The reasons for dollar weakness are well known. The Fed’s [...]
Asia may rise but be careful of the dragon October 12, 2010 The Thai government attempted to pull on the reins of its rapidly appreciating currency yesterday. This should be a warning sign for traders putting their cash into emerging market currencies. Capital controls are one of the few weapons available to governments who need to keep their currency weak to compete with China in the export [...]
FOREX ANALYST PICKS October 12, 2010 FOREX STRATEGIST JOEL KRUGER My pick: Buy dollar-Swiss franc at SFr0.9705 Expertise: Classic technical analysis Average time frame of trades: 1 week-6 months Our buy order from last week never triggered and we will once again look to take a shot. Setbacks have finally stalled out after posting fresh record lows in the SFr0.9500s. Short-term [...]
THE TIPSTER October 12, 2010 While resistance has remained at $1.4000 for euro-dollar, the level was breached this week. The rate dropped off slightly while investors waited for an announcement from the Federal Open Markets Committee with regards to an extension of quantitative easing (QE). But regardless the overall bullish trend remains strong. Cantor Index offers a daily spread of [...]
Hitting all keys at once hides the tune October 12, 2010 ERIC Morecambe famously played all the right notes, but not necessarily in the right order. Narrative reporting – the non-financial context provided alongside financial information in a firm’s annual report – is likewise playing all the right notes, but the result is just as incoherent: it is playing all its notes at the same time. [...]
THIRD BIDDER IN LIVERPOOL FIGHT October 12, 2010 AMERICAN hedge fund Mill Financial has emerged as a third bidder for Liverpool FC as the High Court prepares to rule on the bitter war over the football club’s ownership this morning. Mill Financial’s offer includes the promise to repay the £200m owed by Liverpool owners Tom Hicks and George Gillett to the Royal Bank [...]
Fed hints at more QE in near future October 12, 2010 AMERICA’S Federal Reserve is considering a new round of quantitative easing (QE) “before long”, according to the minutes of the panel’s most recent meeting, released yesterday. The minutes said “many” Fed officials thought a second round of monetary easing might be needed to kickstart America’s flagging recovery, in the strongest signal yet that they are [...]
Further Fed easing is likely October 12, 2010 THE MINUTES of the Federal Reserve’s latest meeting released yesterday showed growing tension between members, as the panel edged towards further quantitative easing to help rouse the American economy. The panel of banking governors took more than five hours to reach an agreement on 21 September – around twice as long as meetings earlier in [...]
Don’t rejoice too soon about US QE2 October 12, 2010 IT now looks as if the US will embark on another round of quantitative easing (QE), sooner rather than later. Last night’s minutes could hardly have been any clearer. While an important minority of Fed decision-makers remains opposed, or (sensibly) wants to wait for additional information, “many participants” think that unless growth accelerates, unemployment fall [...]
BHP and Rio go to EU for tie-up BHP October 12, 2010 Billiton and Rio Tinto will meet EU antitrust regulators by the end of this month to help the European Commission decide whether to clear their proposed joint venture, sources said yesterday. The Commission is examining the miners’ planned $116bn (£73.54bn) iron ore production joint venture in western Australia to determine whether it is anti-competitive. Rio [...]
