One glance at the 'ticks' surrounding this morning's so-called "fat finger" in EURCHF and it is clear that this was anything but a human trader falling asleep on his keyboard or accidently selling 100 yards and not 100 million CHF... Welcome to the 'unrigged' markets... (in FX also)... where stop-hunting algos rip to a 50-day moving-average in milliseconds to remove all stops before fading back ingloriously to unchanged. As Nanex suggests, this started in the CHF futures market...
This is the key issue for market participants: Is the dollar breaking lower or is it just testing the lower end of its range ? Here is my take.
Chief Economist Of Central Banks' Central Bank: "It's Extremely Dangerous... I See Speculative Bubbles Like In 2007"Submitted by Tyler Durden on 04/11/2014 18:05 -0400
Yet again, it seems, once senior political or economic figures leave their 'public service' the story changes from one of "you have to lie, when it's serious" to a more truthful reflection on reality. As Finanz und Wirtschaft reports in this great interview, Bill White - former chief economist of the Bank for International Settlements (who admittedly has been quite vocal in the past) - warns of grave adverse effects of the ultra loose monetary policy everywhere in the world... "It all feels like 2007, with equity markets overvalued and spreads in the bond markets extremely thin... central banks are making it up as they go along." Some very uncomfortable truths in this crucial fact-based interview.
Outlook for the dollar in the week ahead.
The purpose of Quantitative Easing is to support the balance sheets of a few over-sized banks and to finance the federal budget deficit at an artificially low rate of interest. In other words, QE supports failed banks and federal fiscal irresponsibility. In order to successfully carry off this blatant misuse of public policy, the price of gold, a measure of the dollar’s value, must be suppressed. The Federal Reserve’s lack of integrity speaks volumes about the corruption of the US government.
There’s nothing like a nice cup of reality 'tea' first thing on Monday morning. Periodically, we like to scan headlines for phrases like “record high” or “all time high”... in today's case, the results can often given an interesting big picture perspective of what’s happening in the world.
A look at the price action in the foreign exchange market, within the context of fundamenal developments.
Weekly outlook for the major currencies, from a technical perspective.
An overview of the technical condition of the major currencies.
A near-term outlook for the dollar against the major foreign currencies.
Dispassionate look at next week's calendar.
A weekly technical outlook for the major currencies.
A look at the price action among the major currencies for the week ahead.
The US dollar lost ground against all the major currencies last week. It looks poised for additional near-term weakness.
A technical look at the currencies. The phase that has characterized the first few weeks of the year has ended and a new one has begun.