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Market WrapIt seemed a bloodbath in the global equities markets as investors sold off risky investments for more secure financial holdings, particularly following FOMC Chairman Bernanke’s pessimistic testimony on Thursday 17 January, and the forex market endured another week of jittery trading. Certain commodities, including gold and oil, eased down from unsustainable record highs with technical [...]
The new year began with a sell-off of global stock markets, entrenching risk aversion, and a new record high on the price of gold. The united central banks’ liquidity measures returned some sensation of normalcy to the money and credit markets, however, the forex trading market remained jittery at best. Numbers for the Australian economy [...]
Credit markets remained tight around the world this week but took a back seat to commodity prices and continued economic turmoil. The prices of oil and gold touched psychological highs then dropped as continued discouraging U.S. fundamental data sparked worries of global economic slowing, hurting primarily the export currencies. Although interest rates remain a major [...]
Carry trades again declined in favour this week as geopolitical turmoil in Pakistan urged investors out of the riskier areas of the financial marketplace despite robust trading in global stock markets. The Australian dollar strengthened against its U.S. counterpart on slightly stronger gold prices. The AUD/USD currency pair on Wednesday entered a trading range between [...]
This week, coordinated central bank auctions and currency injections poured liquidity into the markets and eased pressure on commercial banks. Despite more sub-prime mortgage disasters, this week saw the return of the carry trade as investors’ fears of global recession waned. The Australian dollar was the second best performance among the most actively traded currencies. [...]
A coordinated plan announced Wednesday by multiple European, Australian, and North American central banks to provide international bank liquidity may ease the immediate crunch of the credit crisis and certainly reassured the forex trading market following the FOMC’s disappointing 25bp interest rate cut on Tuesday. Overall, risk aversion continued to dissipate and year-end volatility skewed [...]
With interest rate meetings across the globe this week and next, the forex trading market took a deep breath and currencies consolidated. Fears of a U.S. recession receded with the closing of the year; risk aversion declined with it and the carry trade returned. As expected, the RBA kept rates on hold as a balance [...]
The clear signal from Chairman Bernanke of the Fed’s intention to combat recession through additional interest rate cuts rallied the U.S. dollar against most major currencies during the latter half of this forex trading week. It’s an odd logic that has lower interest rates strengthening the USD; however, emotions in the market remain volatile and [...]
