Posts Tagged ‘ possibility ’

Intervention Looms as Yen Closes in on Record High

It was only a few weeks ago that I last wrote about the possibility of intervention on behalf of the Japanese Yen, and frankly, not a whole lot has changed since then. On the other hand, the Japanese Yen has continued to appreciate, the Japanese economy has continued to deteriorate, and the Bank of Japan [ READ MORE ]

Could M&A Activity Push Loonie to Parity?

BHP Billiton’s hostile takeover bid for Canadian fertilizer company Potash created a rally in the loonie, pushing USD/CAD from 1.0400 down to a low of 1.0271 over the past 24 hours. The M&A deal valued at $38.5 Billion is expected to be strongly CAD positive if it goes through. So far however, Potash has [ READ MORE ]

Japanese Yen: Intervention is Imminent?

I last mused about the possibility of Japanese Yen intervention in June (Japanese Yen: 90 or 95?): “It seems that anything between 90 and 95 is acceptable, while a drop below 90 is cause for intervention.” Since then, the Japanese Yen has fallen below 86 Yen per Dollar (the USD/JPY pair is now down 7% [ READ MORE ]

Forex Volatility to Remain High

With the onset of the Eurozone sovereign debt crisis this year, volatility levels in forex (as well as in other financial markets), surged to levels not seen since the height of the credit crisis. While volatility has subsided slightly over the last few months, it still remains above its average for the year, and significantly [ READ MORE ]

US Dollar Paradigm Shift

Since the inception of the financial crisis, the Dollar has been treated as a safe haven currency. Simply, when there was a surge in the level of risk-aversion, the Dollar rose proportionally. When risk aversion gave way to risk appetite, the Dollar fell. It was as simple as that. Lately, this notion has manifested itself in [ READ MORE ]

G-20 Fears Send Euro, Cable, Aussie Down

A very choppy night of trade in the currency market with risk FX coming under pressure ahead of the G-20 meeting this weekend as traders warily eyed the possibility of more financial regulation from fiscal authorities. The G-20 meeting in Toronto will likely be marked by greater discord than at any time since the [ READ MORE ]

EUR: Don’t Expect Any Help from ECB

The euro broke below the1.29 level today and even came close to breaching 1.28. Over the past week, the euro has fallen approximately 3 percent against the U.S. dollar and over the past 6 months, it is down close to 14 percent. The Greek Saga seems to be never ending with each chapter [ READ MORE ]

Will RBNZ be the Next CB to Hike Rates?

As expected the RBNZ kept its rates unchanged at 2.5% for eighth consecutive time but left open the possibility that the central bank may raise rates in June. The RBNZ Governor Allan Ballard noted that “we expect to be removing policy stimulus over the coming months, provided the economy continues to evolve as projected.” [ READ MORE ]

Dollar: A Greek Deal Over The Weekend?

The sell-off in U.S. equities forced currencies to give up their earlier gains. Stocks fell steeply after Standard & Poor’s slapped a sell rating on Goldman Sachs as the scrutiny of the investment bank intensifies along with fears that the bank could come under a criminal investigation. Although the problems for Goldman are [ READ MORE ]

No Credit Risk in Forex

The risks in trading forex are manifold. There is interest rate risk (the possibility that interest rates could change adversely), country risk (that a political, economic, or monetary crisis could adversely affect the dynamics of a country’s currency), and obviously there is exchange rate risk (that exchange rates can and often do fluctuate adversely). However, [ READ MORE ]

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