Archive for euro

Portugal: The Third Domino to Fall

What does this mean for the euro? Any rally should be seen as an opportunity to sell at a higher level.

The big story in the financial market today is Portugal - the next domino expected to fall. According to a poll conducted by Reuters, 85% of dealers expect Portugal to receive a bailout. [...]

Euro - Down Baby, Down

Down baby, down. Who said 1.30 is not possible (Not me - Bearish euro calls)? Trouble begets more trouble. As I said on my twitter feed twitter.com/kathyliefx no one wants to own euros. Irish, Portuguese and Spanish 5 year CDS spreads have all widened (What are Credit Default Swaps?). I expect more [...]

Update on Bearish EUR, AUD and CAD Calls

I have received alot of notes on my bearish AUD, EUR and CAD calls, so here is a quick update. If you missed the call, I’ve copied all the info below. Updates in RED.
1) Short EUR - Looking good. Would be smart to take off half here, still looking for [...]

Bearish AUD, CAD and EUR

Fresh back from vacation in the Sunny Caribbean - here are some trades that I like off the bat:
1) Short AUD - After last week’s disappointing GDP, retail sales, service and manufacturing PMI reports, there is no chance the RBA will be talking about another rate hike this evening. The last time we heard [...]

Vietnam More Credit Worthy than Portugal and Spain?

You may have read that European bond spreads have widenend to record levels but how bad is that really? To put everything into perspective, investors are demanding more premium to lend to Ireland, Portugal and Spain than to emerging countries in Europe and Asia. To be more specific, these 3 European countries that [...]

Ireland Accepts Aid - Euro Stabilizes

Over what has surely been a long weekend for Irish policymakers, the government finally caved - accepting aid from the EU and IMF. The announcement stabilized the euro and caused the currency to gap higher against the U.S. dollar on Sunday. Foreign exchange traders have been counting down the hours to an Irish [...]

Why is Euro Pulling Back?

I was on the Business News Network this morning talking about why the euro pulled back after touching 1.40 and the fundamentals behind the trade. Click on the image to access the video:

European Stress Tests: Could the Publicity Stunt Backfire?

The European sovereign debt crisis has come back to haunt the euro. In the beginning of the year, European debt problems drove the EUR/USD from 1.45 down to 1.1877. When the fears receded, the euro climbed back above 1.33. However now that the fears that have gripped the currency for most of the year [...]

Euro: Continuation or Consolidation?

The euro has sold off aggressively over the past 24 hours, breaking below at least 3 big figures in the process. After such a strong move, many currency traders wonder if there will be consolidation or continuation. Today’s sell-off in the EUR/USD was the strongest since January 5, 2009 and taking a look [...]

Fed: Changes to the June FOMC Statement

After the FOMC announcement yesterday, I posted this comparison of the FOMC statement on FX360.com. I am posting it again in case you want to understand exactly what parts of the statement has been changed. EUR/USD did not follow through on its post FOMC rally is now trading below 1.30. That is [...]