Fiscal Cliff Deal, A Perfect Start For The New Year… and Risk Sentimenthttp://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/fiscal-cliff-deal.jpg
January 2, The Fiscal Cliff deal allowed a temporary relieve of two months by kicking the issue down the road, which effectively provided a solution for the January 1 automatic tax hike. With that being said, it does not take a genius to predict how the market will react; my prediction is that we’ll see some more weakness in the JPY and USD as traders shift their focuses to other issues.
Nonfarm Payroll May Boost Risk Sentiment For The New Yearhttp://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/NFP-hiring.jpg
January 3, With Nonfarm Payroll scheduled before the ISM Non-Manufacturing PMI, a leading indicator that encompasses about 72% of the working force, it is difficult to make an accurate prediction as to what the Nonfarm Payroll figure will be on Friday. However, with the surprisingly positive release out of ADP, which beat market expectation by roughly 100K, I believe we are more likely to get a positive than a negative surprise...
Feds To End Quantitative Easing (QE) By 2013?http://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/stree-fighter-Fed.jpg
January 7, With all three Fed officials calling for the potential end of Quantitative Easing (QE3 and QE4) and the fact that Bernanke and other doves have not responded, it is increasingly likely that the market may be repositioning itself for a USD breakout. Although the reality may be different from market perception, I do believe that because of this “unexpected twist of events”...
ECB Draghi Press Conference Signals Improvementshttp://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/ecb-draghi-press-conference.jpg
January 11, The very fact that Draghi used the phrase “significant improvements” is enough to drive the market up, not considering the fact that he spent a better part of 5 minutes discussing the payback of LTRO, which in essence is a strong sign that the Euro market has improved, to say the least. Moving forward, because of this new revelation and the new tone that our dear Chief have adopted, I believe EUR may now...
Japanese Yen Strength May Be A Blessing In Disguise?http://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/yen-strength.jpg
January 15, The question is: Is this the end of Yen weakness as traders scramble to get out of their short positions? My opinion: Hardly. I believe the market is driven by speculators. With USDJPY risen from the low 80s to 89 based on nothing but speculation, it is not a surprise to see traders looking for a reason to take profit, and what better reason do you need...
Fed Chief Bernanke Downplays Inflation Concerns…http://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/bernanke-qe3-notover.jpg
January 15, Fed Chief Bernanke downplayed the potential for inflation during his speech on Monday, possibly signaling the market that the majority of Fed officials do not agree the stance of Plosser, Bullard, and Lacker on the view that Fed may end QE3 by the end of 2013. Here are some of the highlights of his speech...
Here Comes The Yen Correction!http://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/yen-correction-1.jpg
January 17, Once again, JPY is correcting from its sharp rise as results of market jitteriness over the comments by none other than the Japanese Economic Minister Amari himself on the excessive Yen weakness… And as you know, earlier on today Amari backtracked his comments and the market was all too happy to short the Yen again, doing the exact same thing I predicted...
Bank Of Japan (BOJ) Joins the QE Infinity Club!http://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/boj-welcome-to-qe.jpg
January 22, Bank of Japan decided to keep an open ended Asset Purchase program, with the explicit target of 2% inflation, joining the likes of Federal Reserve in an ultra-easing monetary policy, and officially makes BOJ the card-carrying member of the Infinity (and beyond?) QE Club! Here are the highlights of this BOJ meeting...
Post January FOMC Statement Analysishttp://www.currencynewstrading.com/wp-content/uploads/slideshow-gallery/post-fomc-rate-decision1.jpg
January 31, With US Q4 GDP released earlier at a -0.1%, or the first negative reading since when the financial crisis began in 2008, there is really no possibility for the Feds to even mention ending QE3. Therefore, we’ve got a statement that’s mostly a copy from the previous statement, with some positive tweaks in the language. Which means that the Feds are seeing results of the ultra-easing policy and will continue to do so...
Month In Motion – January 2013
February 4, 2013 by Leave a Comment