Forex Investment and Currency Trading

In the 1990s, the currency markets grew more sophisticated and faster because money, and how people viewed and used it, was changing. Bankers and merchants have always sought ways to speed up the movement of money. It meant more security, more flexibility, and more profits. A big leap was made with the invention of the telegraph in 1800s, which allowed people to wire money within a vast network. This first instance of electronic transfer, however, was not commonly used.
After World War II, large numbers of America began paying bills with checks rather than with cash. Banks looked for ways to [...]

[Read more →]

FX Update
MBA Mortgage Applications (Actual: 2.5%)
CPI YoY (Survey: 4.0%, Actual: 4.0%)
Core CPI YoY (Survey: 2.4%, Actual 2.4%)
Housing Starts (Survey: 1010K, Actual: 947K)
Building Permits (Survey: 970K, Actual: 927K)
Industrial Production (Survey: 970K)
Upcoming Data: Jobless claims, existing home sales
USD
The USD is broadly weaker this morning on the back of worse than expected housing data released this morning. Housing starts came in well below expectations at 947K versus consensus estimates of 1,010K. Housing continues to remain a key theme in US markets and weakness in here reinforces the case for fundamental USD weakness.
EUR/USD
EUR/USD hit a new record high in the European sessions following stronger [...]

[Read more →]

FX Update
Advance Retail Sales (Survey: 0.0%, Actual: 0.2%)
Retail Sales less auto (Survey: 0.1%, Actual: 0.1%)
Business Inventories (Survey: 0.6%)
Upcoming Data: PPI, Empire Manufacturing, Net long-term TIC flows
USD
The USD is broadly weaker against a number of the majors this morning despite an upside surprise in both Advanced Retail Sales and core Retail sales. The USD weakened significantly after news from Wachovia that the bank had experienced an unexpected loss as a result of sub-prime mortgage holdings. This morning’s news has caused concern that the worst of the credit crisis has yet to pass.
EUR/USD
EUR/USD is higher again this morning on the back of [...]

[Read more →]

The financial market environment over the last 9 months has been turbulent to say the least. We have seen this turbulence reflected across all corners led by credit but also in Equities, Commodities and FX. 
In the recent months the market focus has been particularly focused on the credit scenario, health of financial institutions, ability to raise capital etc. etc. 
This problem has been correctly seen to be primarily a problem for U.S. financial institutions with other pockets of stress overseas (U.K. and Europe in particular). 
One thing financial markets hate… actually 2 things they hate are uncertainty and inaction. We certainly have [...]

[Read more →]