By Ninja Forex – For those of you that make a living (i.e. trade forex) from interest rate differentials, consider that the US Treasury yield curve is now steeper than at any point in recent memory. Short-term rates are still close to zero, while long-term rates just passed 4% and are still rising. The theoretical implication is that one can borrow at a low short-term rate and reinvest at a higher long-term yield. The question is: would you want to?
The meeting this week of the Federal Reserve Bank yielded few surprises, as the Fed voted to hold its benchmark Federal Funds Rate at the current level of nil, and indicated that they would stay “unusually low” for the near-term. According to one analyst, “It was totally as expected. The market doesn’t seem to have reacted that much. Everybody pretty much knew that for sure they wouldn’t raise rates anytime soon and they wouldn’t do anything to withdraw liquidity.” Read More
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By Baby Pips - Another interest rate decision tomorrow – what will Jean-Claude Trichet and the ECB pull out from the monetary policy hat this time? The European Central Bank (ECB) is accountable for the monetary policy of the 16 member countries of the Euro zone. The bank has control of the region’s money supply ... ...
Technical Levels for certain currency pairs EUR/USD: Presently trading at 1.4064 bid Resistance levels at 1.4092 and 1.4150. Support levels at 1.3975 and 1.3920 We favor short EUR/USD positions. USD/JPY: Presently trading at 96.88 bid Resistance levels: 97.15 and 97.60 Support Levels: 96.20 and 95.50 Pair is currently (96.88) right at an inflection...
By Forex District – The Dollar rose sharply across the board after a report by The Conference Board showed consumer sentiment retreat in June. Data was unexpectedly weaker than estimates catching market participants by surprise. U.S. stocks turned lower after the news, damping demand for higher yielding assets. U.S. consumer confidence fell t...
Our detailed commentary from last week both before and after the FOMC statement on Wednesday noted that we believe that the Fed’s comments would lead to USD strength in coming weeks. So far our theory has been tested as USD has fallen to levels that printed before the FOMC statement. EUR/USD is trading at 1.4110, ... ...
We have overlaid the below chart of daily price action in spot Gold with our favorite Bollinger Band (“BB”) settings. Within an overall trend of Gold moving higher, we have noted that recently any break through the midline (currently at 943.50) to the upside has been the start of a strong move higher. Moves through ... ...
By Forex Magnates – Capital Blu investors’ $17M mostly gone, authorities say Investigators have found only a fraction of the $17million that investors poured into a Central Florida-based currency-trading scheme called Capital Blu, according to the company’s court-appointed receiver. Less than $500,000 in cash has been recovered so far fro...
By Jade Gate / Forex District – Just like surfing the ocean waves, there is a right time of day to catch the incoming or outgoing Forex tide waves. When the time comes and “the surf is up”, there is also an exact right moment to harness the maximum power of the individual wave as ... ...
We are nearing the end of a very volatile week in the currency markets. Trying to find a big figure or two has been nearly impossible except for this past Monday. We are sticking with our theory of stronger USD for the coming weeks based on the US Fed’s statement this past Wednesday. (See our ... ...
By Downtown Forex – June 25th – Just launched today! Check out our “Expert Advisor” section for over 2700 indicators, free for download. Check back in the next couple of days for our library of expert advisors. ...