Archive for May, 2009

Forex Trading Tips: The Mind Games of the Market

The Mind Games of the Market
Imagine you are standing three feet away from the cup. The ball is perfectly aligned and all you have to do is tap it into the cup to close out the hole and win the round against you buddies. You saunter over to the green with a smile on [...]

EUR/USD: Fade Non-Farm Payrolls

Most people know that non-farm payrolls is notoriously difficult to trade. However. I want to point out that in each of the past 4 months, the knee jerk reaction in the EUR/USD was quickly erased. This suggests that the initial move is “fade-able.”
Take a look at the 5 minute charts yourself to [...]

Geithner on How We Tested the Big Banks

Treasury Secretary Geithner is on a roadshow to prepare the markets for the results of the stress test.
Last night, he was on Charlie Rose (PBS) talking about the benefits of the stress tests:

There was also an Op-Ed piece in the NY Times written by Treasury Secretary Tim Geithner on “How We Tested the [...]

What Sets ECB Apart from Fed and BoE?

Both the European Central Bank and the Bank of England announced asset purchases today, but the Euro skyrocketed while the British pound fell, leading many currency traders to wonder What Sets the ECB Apart from Fed and BoE?
Read Boris’ take on the Bank of England Rate Decision
Before talking about why the euro recovered, here are [...]

What are Euro-denominated covered bonds?

Euro denominated covered bonds are securities created from either a pool of private or public sector loans. Covered bonds are similar to mortgage and asset-backed securities in many ways.
The primary difference is that the loans backing a covered bond remain on the balance sheet of the issuing bank. The bonds are therefore obligations [...]

Outlook for the Canadian Dollar

I was on the Business News Network this afternoon talking about the outlook for the Canadian dollar. Click on the image to access the video:

More Evidence Non-Farm Payrolls Could Beat

Speculation that Bank of American may need USD$34bn of capital has triggered fresh concern about the results of the stress tests on banks, which are due for release on Thursday. However despite these fears, there is growing evidence that job losses may have tempered with non-farm payrolls likely to see the smallest decline in [...]

3 New Features on FX360

As I have previously promised, we are continuing to add new and exciting features to FX360.com
Here are two features that we launched today:
Trade Recommendations Tab (right side of homepage)
Don’t just believe us when we say that our Technical Analysts are good at picking trades. See for yourself. We have launched a tab for Trades [...]

Canadian Dollar: How Much Further Can it Rise?

The Canadian dollar has been on a tear. Over the past week, the currency has rallied more than 5 percent against the U.S. dollar and is up more than 10 percent since the beginning of March. On Tuesday, the loonie even hit a 6 month intraday high against the greenback. So far [...]

Why Non-Farm Payrolls Could Beat Expectations

Non-farm payrolls are due for release on Friday and there is a very strong chance that job losses were less than 600k. I am going to be doing a thorough preview of NFPs later this week, but here is one of the PRIMARY reasons why payrolls could beat expectations. The employment component of [...]