Blog Entries tagged 'profxi'

Forex and Financial Market Update

veritefx

Typically on Sunday's I do a weekly market outlook, but there's so much happening this week in Forex, equities, commodities, Treasuries, and on the geo-political front, I don't have the time and space to fit everything in. So, for this update I'm going to get us ready for Sunday/Monday trading in addition to hitting some core underlying fundamental factors I feel are imperative we traders need to be mindful [...]

Forex and Financial Market Update

veritefx

Today was a bit of a historic one for the markets... Chrysler finally filed for Chapter 11 and became nationalized, Obama told the markets the US government will select Chrysler's new board of directors, continuing jobless claims hit an all-time high of 6.27M, Trichet scolded his comrades on the ECB governing council for running their mouths, and little Timmy Geithner was selected as one of People magazine's worlds [...]

Forex and Financial Market Update

veritefx

Yet another wild day in the markets... between GDP, FOMC, various central bank rhetoric, Wall St.'s rally, Treasuries getting hammered, the swine flu alert being raised, and Chrysler teetering on bankruptcy, all markets saw strong price action volatility across the board.

How abysmal headline growth data sparks a rally:

I was shocked to see it but I think we actually got some truth this morning with the latest GDP data. The headline number [...]

Forex and Financial Market Update

veritefx

FOMC event on Wednesday:

I haven't heard much talk or speculation in advance of tomorrow's FOMC interest rate meeting which is surprising to me. I suppose market participants think the Fed can't possibly lowerrates, so it's not worth paying much attention to, but I don't necessarily agree with that view.

Fed funds lower?

Although the effective Fed Funds rate is cur [...]

Forex and Financial Market Update

veritefx

ECB interest rate comments hammer euro:

The sharp drop on the EUR/USD on Monday afternoon was a gift from ECB Ewald Nowotny. He wasn't the only ECB member that gave strong rhetoric on interest rates today, there were more and we'll get to those in a moment. But here's what Nowotny said to send the euro plunging against the dollar and yen:

'ECB rates to stay low for a long time. ECB [...]

Forex and Financial Market Weekly Outlook

veritefx

For this week's market outlook I cover a lot of ground and I'm going in all kinds of different directions with all tradeable markets -- Forex, commodities, equities, bonds, but I'm going to finish it off with a few basics we traders need to keep in the forefront of our minds aswe navigate our way through all the fundamentals, geo-politics, and manipulations that effect moves in the markets.

There [...]

Forex and Financial Market Update

veritefx

Bank of America's $52.5 billion guilt trip:

Whether he intended to or not, Bank of America CEO Ken Lewis stole the headlines today with his alarming admission that former Treasury chief Paulson instructed him to hide and withhold the details of BOA's forced deal with Merrill Lynch. According to the NY state attorney general's office, Lewis was instructed by Paulson to hide from shareholders how toxic Merrill's assets were and how worthless Me [...]

Forex and Financial Market Update

veritefx

Wednesday turned out to be another wild day in the Forex and equity markets where the bears got the best of just about everybody. Lets take a look at how it all went down...

Deep issues with UK money supply and credit:

As we talked about in the update from this morning, the markets were hit with abysmal GBP fundamentals which sent the GBP/USD and GBP/JPY plunging. The GBP/JPY was able to reach the support zone I gave at the 141.50 level before [...]

Forex and Financial Market Update

veritefx

Although there weren't many volatile price swings today, there are a few key events worth noting and the first one we're going to focus on is the testimony and rhetoric by our friend little Timmy Geithner...

No-stress test:

This morning Geithner was in DC testifying before another do-nothing committee and he took full advantage of the situation to put on show that would probably make Davi [...]

Forex and Financial Market Update

veritefx

For my first day back of watching the markets in about a week or so it felt like February all over again... fear, panic, and risk aversion were clearly the order of the day in the Forex market along with all other correlated markets as we saw the dollar, yen, gold, and Treasuries make strong gains while crude, the euro, pound sterling, Swiss franc, and Aussie took another beating and round after round of sell-offs. When we have a scenario where gold and the USD Index mov [...]

Forex and Financial Market Update

veritefx

This morning's the first time I've looked at the market since last week and there's obviously been quite a bit of volatility... I think the last time I looked at the FX market the EUR/USD was in the 1.3400s, the EUR/JPY in the 133.00s, GBP/JPY in the 149.00s, AUD/USD in the 73.00s, and the GBP/USD was approaching the 1.5000 level.

While there's been a resurgence in the USD and JPY I also see equities have been fairly well supported. At first [...]

Forex and Financial Market Update

veritefx

As we officially kicked-off the start of earnings season, US equity markets were down for the second day in a row with the S&P 500 dropping 2.4% while the Dow lost 2.3%. And, for the second day in a row the markets were looking for anybody or anything to blame for the losses. On Tuesday the financial media blamed "legendary" investors Marc Faber and George Soros for making comments that spooked Wall St. Once [...]

Forex and Financial Market Update

veritefx

We certainly had an interesting and volatile start to the week... just two-hours after Wall St. opened, the currency had pretty much already exhausted itself as most of the majors and crosses ran up like champs and fell back down like chumps. What does it all mean? Nothing really. The liquidity was severely lacking and as London and NY money-flows hit the FX market everything came right back down... no follow-through at all.

It's been reported a stock a [...]

Forex and Financial Market Update

veritefx

It was a wild day across the board just we expected... we'll get started with Trichet.

ECB:

Defying my forecast and just about all other forecasts, Trichet only cut interest rates by 25bps which obviously was great for the euro. The main event was his press conferencewhich yielded a number of interesting comments and rhetoric.

I have to say that today's press conference with Trichet was one of the more bizarre events [...]

Forex and Financial Market Update

veritefx

The final 48-hours of Q1 started as exciting as we expected with most markets being hit by heavy profit-taking, repatriation of sovereign funds, and plenty of news to suck the euphoria out of the equities markets and cause sharp price swings, especially with crude and the JPY crosses.

Crude took a beating today and to me it looks like money-flows were pouring out of the crude market as hedge funds and other participants were taking profit and squaring their [...]

Forex and Financial Market Weekly Update

veritefx

To start the week, all markets are at critical levels with several major market-moving events on the books, and the end of Q1 to contend with. In this week's outlook I cover some key areas we need to be mindful of and some other issues traders have been asking me about lately.

Where is the EUR/USD going? I would be purely guessing to give an answer. I think 1.3250 is probably a fairly key level on the dow [...]

Forex and Financial Market Update

veritefx

For the most part the markets saw steady rounds of profit-taking across the board in all markets. After Monday's massive gains, market participants were doing as they normally do. Asia may follow suit this evening as well. I wouldn't call today's drop in equities the end to the bear market rally or the bear market...

ECB hints at following Fed:

I'm not sure how much attention this received on the financial networks, but I think [...]

Forex and Financial Market Update

veritefx

Yesterday Wall St. saw it's fifth biggest day in the history of the US equities markets. Apparently traders are still caught by surprise with the volatility and sharp price swings... This is from my 1-March post that forecasted March's bear market rally, "I see these markets are perfectly set-up to make a sharp and vicious snap back up". That's exactly what we saw yesterday, a vicious snap back on the S&P 500 and Dow Jones.

This mo [...]

Forex and Financial Market Weekly Outlook

veritefx

The week ahead is bound to be filled with a heightened tide of geo-politics, anxiety, and uncertainty hitting the markets. That means we need to be at the top of our game and stay one step ahead of these markets and the central banks. No one can predict the future of these markets but being prepared for what may come is the next best thing.

I cover a lot of ground in this week's update but I feel these ar [...]

Forex and Financial Market Update

veritefx

In the first day of the new world we saw global market participants mostly exiting their positions in the equities markets while the USD saw another round of selling against the EUR, GBP, JPY, CHF, and AUD.

Spot gold gained about $30 on the day and spot crude managed to hold its ground above the $50 level. All of those correlated markets helped keep the euro well supported against the dollar despite a sharp sell-off with the S&P 500 futures.