EUR/USD got into narrow range trading, clinging to the uptrend support but breaking higher.  Will the pair pick a direction? Here’s a quick update on technicals, fundamentals  and community trends. EUR/USD within new uptrend channel, that began last week. Click to enlarge. EUR/USD Technicals Asian session:  EUR/USD bounced from the 1.2665 support line to the 1.2722 resistance line. Current Range is between 1.2665 to 1.2722. Further... 

More than 3 weeks ago, I talked about how USD/JPY has a strong tendency to weaken in the month of August (see post: USD/JPY Falls 10 out of the Last 12 Augusts ). The year 2010 was no different as USD/JPY ends the month down nearly 3 percent. At that time, I said “Although seasonality does not equal a certainty of USD/JPY weakness, it is worth noting that 83 percent of time, USD/JPY has ended the month lower by an average of 2 percent.... 

I was on Fox Business earlier today talking about my outlook for the US Dollar: Watch the latest video at video.foxbusiness.com  Read More →

U.S. DAP Employment Report, ISM Manufacturing Index and Australian GDP are at the top of our market moving events for today. Here is an outlook on the economic activities awaiting us. In the US, Automatic Data Processing Employment Report, a measure of jobs lost or added to the private sector of the economy, also serving as a preliminary estimate for the outcome of the monthly non-farm payrolls expecting a slower jobs creation of up to 20 K jobs... 

Price action on GBP/USD (a 4-hour chart of which is shown) as of Tuesday (8/31/2010) has dropped to approach support in the 1.5350 price region. This occurs within the context of a relatively choppy descent from the 6-month high just under 1.6000 reached in early August. This descent has formed a clear downtrend resistance line. For more technical analysis on this currency pair, please click here for Tuesday’s (8/31/2010) Chart of the... 

Sorry for the lack of posts, but, hopefully, frequency will increase as TMM pack away their beach towels and knotted hankies for another year. But for now we would just like to say that if the rest of peripheral Europe are taking the crisis anywhere near as seriously as Greece is, then the whole place is f%”ked. We have just found …  Read More →

It took the CFTC a lot of time, but they finally finalized their ruling for forex: leverage will be limited to 50:1 on major currencies, and 20:1 on minors. The pressure against the initial 10:1 proposal worked, but the industry will still change. American traders: Will you stay with your American broker? In January, the forex industry was shocked with a proposal to limit leverage in forex trading to 10:1. Apart from traders’ comments, an... 

The frequency of my reports on the Chinese Yuan is admittedly much higher than it used to be. Why? Call it disbelief. More than two months have passed since China revalued its currency, and after a rapid 1% appreciation, the RMB has actually fallen back. Today, it stands only .5% higher against the Dollar compared to June 18. On a trade-weighted basis, it is actually 2.3% lower. What is going on?! It can foremost be attributed to …  Read More →

Guest post by  ForexTraders.com The U.S. Dollar turned in a mixed performance last week without moving much against any of the other major currencies. Traders reported that the primary boost to the Dollar’s fortunes versus the Euro and Pound Sterling was the news out last Tuesday that the Standard and Poor’s rating agency had downgraded Ireland’s sovereign debt from AA+ to AA-. Overall, the U.S. Dollar gained +0.2% versus the Euro, +0.1%... 

I guest hosted CNBC Asia for 2 hours last week. If you missed the videos, the calls are still relevant: Possibility of Yen Intervention I like CHF/JPY Talking about possibility of additional stimulus pre Jackson Hole  Read More →

I am finally back from Singapore and in the office watching rates, quotes and charts today – would be perfect if not for this horrible cold that I caught on the way back. It was such a great pleasure meeting so many of you! Here are some pics from Investfair and the Masterclass that I gave in Singapore Speaking at the GFT Booth – Can you find me? Presentation at Investfair Forex Masterclass at the DBS Auditorium Checking out the... 

Price action on GBP/JPY (a daily chart of which is shown) as of Monday (8/30/2010) has pulled back up to the lower border of the large rising wedge formation that it broke down last week, before reasserting its bearish stance today. The low that was reached on the wedge breakdown before pullback was in the 128.75 price region, around a 3-month low for the pair. For more technical analysis on this currency pair, please click here for Monday’s... 

Guest post from  visionsofaffluence.com In the world of trading there are very few mistakes that can be a costly as the one I am going described to you in this article. This mistake can be so costly that I have personally seen it set traders back years and even end some careers. This is also a very common mistake as pretty much every trader I have ever talked to myself included myself. So then what is this common …  Read More →

The recovery that emerging markets (their economies and financial markets) have staged since the lows of 2008 is impressive. In most corners of the financial markets, all of the losses have been erased, and securities/currencies are trading only slightly below there pre-credit crisis levels. Even compared to twelve months ago, in 2009, the performance of emerging market currencies holds up well. In the year-to-date, however, most of these currencies... 

The Bank of Japan announced an immediate emergency meeting to begin very soon – Monday 00:00 GMT. There are expectations for new easing steps to boost the economy. But there might be more – Will we see a global coordinated intervention to weaken the yen? Yen crosses are already on the rise. The governor of the BOJ, Masaaki Shirakawa, shortened his visit in Jackson Hole, where he met other central bankers, and returned swiftly to Japan....