I noticed a Reuter’s poll today. All the top banks were asked to provide their guess on just how undervalued the Chinese currency – yuan- was against the US dollar. The average guesstimate was about 20%. That’s about 20% lower than my guess would have been, but no matter. What…
Category Archives: General Forex
USD/JPY Glides Lower Amid Weakness in U.S. Equities
The USD/JPY hovered below our 1st tier uptrend line earlier today as we witness a broad-based selloff in riskier investment vehicles. Investors have indicated a preference for the Yen over the Dollar when heading for safety, meaning the USD/JPY could experience a positive correlation with U.S. equities should present weaknesses…
EUR/USD Pulls Back with U.S. Equities
The EUR/USD briefly traded beneath 11/17 lows before stabilizing as we witness a broad based strengthening of the Dollar in reaction to a dip in the S&P futures below their psychological 1100 level. The wave of disconcerting data points from the past couple weeks appears to finally be taking its…
EURGBP: Corrective Recovery Momentum Intensifies
A third-day of upside strength currently seen continues to propel the pair higher following its break and hold above the 0.8896 level on Thursday. It was seen testing its daily 50 ema as at the time of this writing. This development should set the tone for further upside towards the…
GBP/USD Sells Off Sharply to Psychological 1.65 Zone
The Cable is undergoing an intense pullback today, dropping beneath all of our previous uptrend lines along with 11/12 lows. The Pound is getting hit by a report from Nationwide and an analyst poll from Bloomberg implying Britian’s housing recovery may be overdone and analysts are expecting a pullback in…