Forex Investment and Currency Trading

The markets still appear a little groggy after the holiday break and unsure of what to do with the major currencies – yesterday was a “risk on” sort of day on the basis of higher commodity prices and (mainly) higher global equities but the USD did relatively well, the JPY rebounded and the EUR turned in a rather middling performance – not exactly risk on sort of trends. The only thing that seemed to “fit” was a modest outperformance by the commodity bloc. It is notable that the inverse correlation between the USD and equities, which had shown signs of [...]

[Read more →]

The New Year has seen the USD revert to its old ways to some extent; the late year gains in the USD were temporary in nature, and while the slide in EUR/USD extended further than expected, some still do not think the late year rebound in the USD represented a significant turning point. While long term rates in the US have been rising, shorter term rates remain very low; it has been noted before that very steep yield curves are not usually USD-supportive and the exceptionally low levels of short term rates remain a significant restraint on the USD – [...]

[Read more →]