http://www.babypips.com/blogs/currency_currents/ With Currency Currents, you can stay tuned-in to our current global-macro view and our analysis of key investment themes driving currency prices. We consistently focus on the key asset classes responsible for the flow of global capital -- including equities, fixed income, commodities and, of course, currencies. Nothing is off limits to us in this free-wheeling look at the markets. Some days you’ll receive ramblings on trading psychology, while other days we may take an academic approach in explaining esoteric economic issues. Ultimately we have one goal in mind: to help you get a handle on the key investment themes driving global capital flow. Because if you know where the money is going, it increases the probability that your position in the market will be a profitable one. en Copyright 2009 Thu, 02 Jul 2009 10:28:33 -0500 http://blogs.law.harvard.edu/tech/rss By the looks of it, traders might actually be respecting the holiday commemorating US Independence. The dollar is positive on the day so far. http://www.babypips.com/blogs/currency_currents/come_on_who_sells_dollars_ahea.html http://www.babypips.com/blogs/currency_currents/come_on_who_sells_dollars_ahea.html Thu, 02 Jul 2009 10:28:33 -0500 A key day reversal is defined by Stockcharts.com as "a one day chart pattern where prices sharply reverse during a trend. In an uptrend, prices open in new highs and then close below the previous day's closing price. http://www.babypips.com/blogs/currency_currents/lot_of_key_days_yesterday_or_j.html http://www.babypips.com/blogs/currency_currents/lot_of_key_days_yesterday_or_j.html Wed, 01 Jul 2009 08:13:51 -0500 We're still getting mixed signals as a consolidation moves continue. But it looks as though some of the currencies are building up steam; the likely resolution (on technical analysis alone) being a sharp breakout in accordance with the trend prior to consolidation. http://www.babypips.com/blogs/currency_currents/aud_and_gbp_the_pressure_is_bu.html http://www.babypips.com/blogs/currency_currents/aud_and_gbp_the_pressure_is_bu.html Tue, 30 Jun 2009 08:50:56 -0500 The mantra from most commodities guys is a simple: Be long or be wrong. This is a secular bull market in commodities. And up until that little upset recently, a 50% haircut triggered by the credit crunch, commodity bulls have been right on the money. http://www.babypips.com/blogs/currency_currents/commodities_sentiment_near_and.html http://www.babypips.com/blogs/currency_currents/commodities_sentiment_near_and.html Mon, 29 Jun 2009 09:16:02 -0500 China knows its symbiotic relationship with the US is over. You remember the one; it was based on US buying likely drunken sailors and China sending its sailors over to drop off container cartons of stuff, http://www.babypips.com/blogs/currency_currents/chinese_train_wreck.html http://www.babypips.com/blogs/currency_currents/chinese_train_wreck.html Fri, 26 Jun 2009 10:01:05 -0500 Wondering why the South African rand rallied sharply against the buck yesterday? Me too. Leading into and following the Federal Reserve announcement yesterday, the dollar was stronger versus the pack of majors. So what prompted such strength from the rand? http://www.babypips.com/blogs/currency_currents/an_opportunity_in_dollarrand.html http://www.babypips.com/blogs/currency_currents/an_opportunity_in_dollarrand.html Thu, 25 Jun 2009 08:51:32 -0500 We were expecting at least one day of follow-through (actually more) on the green shoot to brown weed re-think, thinking it would benefit the dollar as it did on Monday, but no dice. http://www.babypips.com/blogs/currency_currents/bad_day_of_the_dollar.html http://www.babypips.com/blogs/currency_currents/bad_day_of_the_dollar.html Wed, 24 Jun 2009 07:31:04 -0500 The World Bank says contraction will be greater than expected; the global economy will slow by 2.9% rather than 1.7%. http://www.babypips.com/blogs/currency_currents/too_far_too_fast_for_a_highly.html http://www.babypips.com/blogs/currency_currents/too_far_too_fast_for_a_highly.html Tue, 23 Jun 2009 10:11:21 -0500 Some days I struggle for things to rave or rant about in this morning missive. Often, after bleeding at the keyboard for an hour or two, something seemingly worth saying pours on to the screen; but there are those days when only the keyboard is stained. http://www.babypips.com/blogs/currency_currents/being_in_the_market.html http://www.babypips.com/blogs/currency_currents/being_in_the_market.html Mon, 22 Jun 2009 09:41:52 -0500 Since I penned my Comdol falling off a BRIC wall piece the other day, the commodity currencies and oil have of course rallied nicely--they didn't follow the plan. But, hope springs eternal in the world of investing, and hope also usually gets one into trouble ... as we know. http://www.babypips.com/blogs/currency_currents/pointcounterpoint.html http://www.babypips.com/blogs/currency_currents/pointcounterpoint.html Fri, 19 Jun 2009 08:57:40 -0500 The correlation between stocks and currencies is working; risk-appetite at its finest. But say we didn't have this connection ... say a 0.023% rise in the S&P 500 didn't equate to the same 0.023% rise in the Australian dollar or euro or whatever. http://www.babypips.com/blogs/currency_currents/lose_the_correlation.html http://www.babypips.com/blogs/currency_currents/lose_the_correlation.html Thu, 18 Jun 2009 09:58:09 -0500 If you get a chance, we think Martin Wolfe's piece in the FT today is worth the read, as it compares where we are in this global recession relative to where we were this time during the great depression. http://www.babypips.com/blogs/currency_currents/humpty_comdols_sat_on_a_wall.html http://www.babypips.com/blogs/currency_currents/humpty_comdols_sat_on_a_wall.html Wed, 17 Jun 2009 10:53:29 -0500 If I happened to know the German national anthem I'd likely break out in song right now before I finished typing up this piece. Oh, by the way, did you hear that German investor confidence blew past expectations in a sign that the recession is coming to a close? http://www.babypips.com/blogs/currency_currents/the_only_explanation_is_cockey.html http://www.babypips.com/blogs/currency_currents/the_only_explanation_is_cockey.html Tue, 16 Jun 2009 08:28:03 -0500 Soaring unemployment in Europe, with still huge banking exposure, rising political tensions, fiscal concerns among the PIGS, a little country called Latvia that may be the canary in the coal mine for its Eastern European neighbors so similarly afflicted http://www.babypips.com/blogs/currency_currents/euro_uht_oh.html http://www.babypips.com/blogs/currency_currents/euro_uht_oh.html Mon, 15 Jun 2009 08:23:06 -0500 The numbers are staggering...really incomprehensible...it's the kind of stuff that if you made it up no one would believe you...I'm talking about the amount of money both the US and European Union have committed to this crisis: http://www.babypips.com/blogs/currency_currents/the_18100000000_question.html http://www.babypips.com/blogs/currency_currents/the_18100000000_question.html Fri, 12 Jun 2009 08:34:09 -0500