Archive for February, 2010

Forex Trading Tips: Excuses, Excuses

Excuses, Excuses
Last week when I was in the UK, I saw a BBC1 documentary that literally made my eyes pop out. The subject of the show was foreign immigration. Apparently, UK is one of the few EU countries (along with Sweden) that allows complete freedom of access to its labor markets and as [...]

The Euro’s Next Battleground: Spain

Here’s another timely story from the Wall Street Journal. Forex markets are in a doozy today with speculation of another possible ratings downgrade for Greece. A bunch of Greek banks were already downgraded earlier this week. However Spain could be the next straw to break:
Greece set off the crisis rattling the [...]

FT on the Massive Dollar Carry Trade

The Financial Times carried a long article yesterday by Peter Garnham on the fears for the future of the dollar carry trade. The key takeaway from the article is that China estimates the dollar carry trade to be $1.5 trillion compared to an $1 trillion that was put into the Yen carry trade (the [...]

My Favorite Forex Trade: GBP/AUD

My favorite long term forex trade is short GBP/AUD. From both a technical and fundamental basis, the currency should be headed lower.
Based upon the recent trend of economic data including the highest level of unemployment in 12 years and the sharpest decline in retail sales since Feb 2009, the Bank of England should [...]

Climbing to New Heights

Guess who is scaling the wall - Yes! Bet you never imagined that Kathy Lien is not only an avid skier but also a rock climber!
Just to keep you updated, I’ve been super busy starting work on a new book, preparing to launch some exciting bells and whistles for BKForex Advisor, developing new trading strategies [...]

Burger King: Perfect Example of Current Inflation Pressures

Burger King’s decision this week to raise the price of a double cheeseburger from $1 to $1.19 and to remove one slice of cheese from the double cheeseburger on its dollar menu (they now call it the BK Dollar Double) is a perfect example of the dilemma that major U.S. corporations are dealing with in [...]

Forex Trading Tips - Forget Everything I Said

Forget Everything I Said
Last Thursday I put out an article entitled “EUR/USD at 1.3500 – Just a Matter of Time?” It was written before the Fed Funds rate hike announcement so it was far from a foregone conclusion. The article spurred a flurry of responses with some readers agreeing with me and but most [...]

Forex Trading Strategy: Reality Versus Theory

Discount Rate vs. Fed Funds Rate

What is the difference between the Discount Rate and the Fed Funds Rate?
On Thursday February 18th, the Federal Reserve surprised the markets by raising the discount rate by 25bp to 0.75 percent, sending the U.S. dollar sharply higher against all of the major currencies. Although the Fed went out of their way to say [...]

CNBC Interview: What the Fed’s Discount Rate Hike Means for Forex

I was on CNBC Squawk Box Australia this evening talking about the implications of the Fed’s discount rate hike on the forex markets.