Forex

T2108 Update – September 1, 2011 (Return of the franc)

(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag.) T2108 Status: 31% VIX Status: 32 General (Short-term) Trading Call: Hold (see below for more details). Commentary The weight … Read more

No Currency Peg Yet for the Swiss Franc As SNB Escalates

Today, the Swiss National Bank (SNB) announced it is taking additional measures to try to weaken its currency and wave off the franc’s many adoring fans. The SNB’s latest statement gets an “A” in rhetoric for amplifying its fighting words and claiming victory in one battle even as the bank warns it is prepared to … Read more

No Relief Rally, but the Dollar Squeaks By the Pound and Franc

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The relief rally for the U.S. dollar that I expected after the S&P downgrade of U.S. government debt did not materialize last week. {snip}…The dollar gained 1.6% over the franc BUT not until after the … Read more

S&P Downgrade of U.S. Debt Sets Up A Potential Dollar Relief Rally

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Nouriel Roubini thinks the S&P downgrade could help lock the U.S. into a recession and Christina Romer wants to “swing for the fences” and respond with a massive jobs bill – Bloomberg Video: “Roubini, Rosner, … Read more

The Swiss National Bank Warns That Strong Currency Threatens Economy

Two nations have the odd combination of near zero interest rates and extremely strong currencies: Japan and Switzerland. Japan has finally moved once again to try weakening its popular currency (click here for a description I gave on how to play the intervention). The Swiss National Bank (SNB), burned by a very unsuccessful attempt to … Read more

How to Play Another Yen Intervention

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Reuters reported yesterday that Japan is getting ready to intervene to weaken its currency. Japanese authorities are getting anxious because the yen is reaching the multi-decade highs versus the U.S. dollar last set in the … Read more

The British Pound’s “Quiet” Sell-Off Continues Nearly Unabated

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Almost a month ago, Bank of England Governor Mervyn King spoke at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House, and I wrote afterward that the … Read more

Governor King Still Gives Me Plenty of Reason for Remaining Bearish on the Pound

On June 15, Bank of England Governor Mervyn King spoke at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House. The speech covered very familiar themes for King and the Bank of England. King first acknowledged the squeeze on the economy in the United Kingdom: “The challenge … Read more