DJ Forex Focus
After a rough ride this month, the Canadian dollar is set to soar again soon. Like other commodity currencies, the Canadian currency has been suffering from worries over sovereign debt and concern about the global recovery.
0 comments Talk of Japanese intervention may soon turn into action. The need to halt the yen's rise is becoming imperative as the euro plumbs new eight-and-half-year lows under Y110 and as the Japanese economy recovers very slowly.
0 comments Like the canary in the coalmine, the Australian dollar has fallen off its perch. A blast of fetid air from the global financial crisis knocked it out.
0 comments The Swiss National Bank should start giving up its intervention battle. The cost, in terms of increased money supply, will soon become more onerous and the need for a weaker Swiss franc will soon become less imperative. All the Same, the SNB will no doubt be reluctant to retire from the battlefield while the risks of another sharp collapse in the euro remain so high. In hindsight, this week could well prove to have been a turning point.
0 comments What are the chances of a sustained euro bounce? Probably fairly small. What are the chances of concerted central bank intervention to trigger such a bounce? Probably about the same.
0 comments In these troubled times, a safe-haven currency rarely does what its label says. Forget the yen, the constant stream of disappointing domestic data and the machinations seen in yen crosses make the Japanese unit too hot to handle of late.
0 comments The euro? Too weak? We're just glad it still exists. That appears to be the message from the European Central Bank and other European bodies right now.
0 comments Yen bears need more patience. Yes, the yen will fall as they hope and expect. Japan's gigantic debt, amounting to 200% of gross domestic product, will eventually become a problem, especially while the government continues to avoid spending cuts and tax rates.
0 comments The European Union may well have thrown the baby out with the bath water. Fears of debt contagion may have receded and global appetite for risk may have improved but the economic costs of the emergency funding package announced last Sunday and the unexpected credit easing engineered by the European Central Bank have inflicted even more damage to the euro's prospects.
0 comments As faith in the top tier fails, it is second tier currencies that will be winners. At the moment, the Norwegian, Swedish, Canadian and Australian currencies are lining up to rally.
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