ForexTribe is a french website mainly created to share graphic analysis and trade ideas on the Forex Forum.
ConcernTitle:
Safe haven currencies lose ground
Safe havens lost their advance seen over the past couple of weeks as the Swiss franc dropped after the SNB unexpected cut to interest rate, the yen fell on expected further easing in monetary policy to halt the currency's appreciation, and the dollar slipped after Moody's warned that the U.S. top rating is still at risk of a downgrade.
First, the Swiss franc, which has been the biggest winner last year as it benefited from the escalating European debt crisis which triggered haven demand, dropped sharply against majors following the unpredicted cut in the three-month Libor interbank rate to a range between 0.00-0.25 percent compared with the prior 0.00-0.75 percent range.
In addition, the SNB said it would increase the supply of francs in the market over the next few days to halt the ...
Title:
Emerging world buys $10 billion in gold as West wobbles
Central banks of emerging market countries such as Korea and Thailand have added more than $10 billion of gold to their reserves this year in a sign of waning faith in the West's benchmark bonds and currencies like the dollar and the euro.
International Monetary Fund data for June on Wednesday showed Thailand bought gold for the second time this year, raising its reserves by nearly 19 tonnes to over 127 tonnes, while Russia bought another 5.85 tonnes, bringing its reserves to 836.7 tonnes, the world's eighth largest official stash of the metal.
So far in 2011, emerging market central banks have bought nearly 180 tonnes of gold, more than double the roughly 73 tonnes purchased by central banks globally in the whole of 2010.
The spot price of gold has risen by more than 17 percent this ...
Title:
Forex - SNB Moves in to Weaken the CHF
Forex News and Events:
Risk is clearing off across the board. Asian equity indices follow the US market lower as the Nikkei fell -2.10%. Europe seemed happy to follow as well with the FTSE comfortably down -0.98 as commodities (baring the safe-haven precious metals) take a hit. EURUSD was down to 1.4144 before the SNB decision to begin QE in an attempt to weaken the CHF. CHF was the big mover dropping to 1.11057 and 0.7788 against the EUR and USD respectively. Global growth fears continue to be the key driver of asset pricing as yesterday’s US data looked seriously weak. US private spending went into negative territory indicating that the US consumer was getting hit hard by the lack of employment and general economic downturn. With the US consumer making up roughly 70% of GDP, no ...
Title:
European services slow in July, while U.K. services expansion increase
European services sector slowed its expansion in July to add to worries after the ease of manufacturing, which raised concerns European growth would continue the sluggish growth in the third quarter.
European services and manufacturing growth expanded at the slowest pace in nearly two years. Services expansion slowed to 51.6 in July compared with 53.7 in June, while manufacturing showed further drop in July where it recorded 50.4 in July from 52.0.
The drop was buoyed by the decline in German reading to 52.9 from 56.7, French PMI which retreated to 54.2 from 56.1, while Italian services rose to 48.6 from 47.40, yet a reading below 50 means contraction.
Meanwhile, the euro is traded at 1.4254 against the dollar compared with the day's starting level of 1.4201.
Eyes will be on the ECB on ...
Title:
Gold hits record as debt worries mount
Gold hit a second successive record high on Wednesday, driven by deepening fears over the spread of the European debt crisis and its impact on regional growth, while data showed a number of central banks including Thailand bought gold in June.
The United States managed to avert an unprecedented debt default on Tuesday after lawmakers agreed to raise the country's borrowing limit. But, the focus turned to credit ratings agencies, which have warned the country could lose its top-notch rating as its finances remain fragile.
The nervousness over the U.S. economy was compounded by the latest developments in Europe, where Italian bond yields rose to their highest in over a decade above 6 percent, a level widely viewed as unsustainable, adding to the lure of gold as a safe-haven investment.
...
Title:
Oil slips on U.S. deficit, ratings worries
Crude oil prices fell on Wednesday after ratings agency Moody's assigned a negative outlook to the United States, stoking concern that demand may fall as the world's top oil user faces longer-term fiscal and economic challenges.
Worries are growing that major economies may slip back into recession as Europe's debt crisis deepens and after global manufacturing data proved disappointing. The slowdown is having a direct impact on U.S. oil demand as consumer spending and gasoline use crumble.
Brent slid 81 cents to $115.65 a barrel by 0832 GMT, almost $12 below this year's peak above $127. U.S. crude fell 44 cents to $93.35 a barrel, the lowest intraday price since June 29.
The passing of a deal saving the U.S. from default triggered fleeting relief amid investors, but focus remained to the ...
Title:
Japan vows to stem yen gains as BOJ meeting nears
Japan kept markets on guard for currency intervention and central bank monetary easing as the finance minister vowed to stem the yen's rise and the prime minister voiced concern over economic recovery on Wednesday .
The yen held broadly steady against the dollar as recent repeated jawboning by Japanese authorities kept markets wary of intervention to weaken the currency, while a deal to raise the U.S. debt limit eased pressure on the U.S. currency.
The pause in the yen was tentative, given lingering worries that the United States faces a ratings downgrade and that Europe's debt crisis will spread further. These concerns could push the yen higher again, forcing Japan to sell its currency for the third time in about a year.
"I don't think currency markets are reflecting economic ...
Title:
SunBirdFX Daily Market Analysis : 03/08/2011
Wall Street keeps sliding as concerns from going back to recession are increasing. The agreement on the debt ceiling did not encourage the investors and the main indices broke important supports and closed yesterday on the bottom.
The S&P 500 is about to break the strong support at 1250 points, and that would be a powerful bearish sign for the US stock markets. If the index continues diving it might fall to 1200 and even to the level of 1150 points.
As we mentioned few times before, the Gold and the Swiss currency are investors' safe shore when the markets are crashing. Therefore, you should try to find trade-ideas in those instruments, since their direction is clearer than others are these days. That is what we did when we brought up the idea of selling GBP/CHF on Friday- a trade ...
Title:
Dukascopy Morning Forex Overview: 03/08/2011
Previous session overview
The dollar rose against the yen on Wednesday in Asia as investors took a cue from weakness in the Japanese currency against the euro on the back of firm Chinese share prices.
The Shanghai Composite Index was up 0.1% as of 0450 GMT, and that prompted investors to cut holdings of the safe-haven yen and increase the euro instead.
Part of the reason why the yen didn't rise during Asia hours was investors were awaiting for comments from Japanese officials including Finance Minister Yoshihiko Noda and Prime Minister Naoto Kan as well as Bank of Japan Gov. Masaaki Shirakawa who were meeting around the noon to discuss economic conditions including the yen.
After-meeting comments were far from satisfying and unlikely to persuade investors to sell the yen for fear ...
|