The expansion of the quantitative easing by the ECB has put a renewed pressure of the greenback to go up. Mind you euro is the biggest component of the dollar basket and the QE has been hugely negative for the euro. When the U.S. dollar goes up then naturally the commodities priced against it will go…
So far the, in June the currency market has seen quite a few high-magnitude events. First was the ECB’s decision to cut the deposit rate to -0.1% from 0.0% on June 5th to counter the deflationary pressures in Euro Zone. No major central bank ever had a negative rate. ECB also reduced the Minimum Bid Rate to…
By reaching a low of 78.915 in the last week of January 2013, the Dollar index made a double bottom – it made the first bottom of 78.725 in early September. The index completed the pattern in late February 2013, by breaking above the intermediate high of 81.515 between the two bottoms made in the…
The U.S. Dollar Index is a geometrically average of six currencies weighted against the U.S. dollar. The Federal Reserve created it in 1973, and the ICE USDX index is the trading vehicle. The index contains six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The euro replaced five European…
The US economy has been on a tepid recovery after the biggest recession since World War II. Lack of strong fiscal policy response due to the divided US government has put most of the burden on the monetary policy. Federal Reserve under Chairman Ben Bernanke has taken various steps to ameliorate the economy. Recently, in…
Weekly Pivots: Dow S&P500 NASDAQ DJTRA R2K FTSE DAX Previous 13,091 1,407 3,067 5,007 812 5,711 6,971 Open 13,092 1,407 3,063 5,007 813 5,711 6,947 High 13,320 1,438 3,140 5,074 844 5,808 7,249 Low 12,977 1,397 3,040 4,939 807 5,635 6,893 Close 13,307 1,438 3,136 5,072 842 5,795 7,215 Change % 1.6% 2.2% 2.3% 1.3%…
Dollar index monthly-chart: USD/JPY monthly chart: EUR/USD monthly chart:
Wednesday’s Recap – Fed To Rescue? Wednesday was the FOMC meeting minutes release day and that kept the markets on tenterhooks for most of the day. The overnight action from Tuesday’s close was stifled by some disappointing news from Japan and Australia along with the apprehension about the FOMC meeting minutes. US futures were under…
Two thirds of August trading days are behind us but the month is not playing up to its reputation so far. Bucking the History: Stock Trader’s Almanac notes that over the past 61 years, August has been 10th best month for Dow Jones Industrial Average and NASDAQ or in other words, third worst. August is 9th best for…
Yesterday’s Actions: Indecision – A Pause or a Turning Point? Monday morning saw S&P futures under pressure since the start of European session. After closing at a four month high, the futures generally drifted upwards overnight and reached a high at around 5:00 AM EDT (9:00 AM GMT) in the early European sessions. The news…
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