Reading that traders believe that Asian central banks bought dollars in the foreign exchange markets to prevent their currencies from appreciating against the dollar in an attempt to help the domestic exporters. The Japanese have expressed this ...

USDJPY Prediction

New York Fed’s President, William Dudley, said on Monday that US interest rates will remain low for a long time. When you combine this with the Australian interest rate increase, investors can see that the US is still weak, meaning it will take a ...

EURUSD

With inflation contained in Australia at 1.5%, well below the 2-3% target, it appears a little odd that the Australian bank decided to increase interest rates so soon, but apparently the 8% increase in home prices this year was cause for concern. I ...

AUD/USD

Gold continues to rally, hitting a spot record high of $1,043.80, probably less as a hedge against inflation and more as a store of a wealth and protection from the weakening dollar. Gold probably will have trouble breaking $1,050, but once it does, ...

Gold Discussion

Australia unexpectedly raised interest rates, the first G20 nation to do so since the recession began, demonstrating its faith that the Australian economy has successfully turned the corner. The Aussie dollar rallied against all 16 of the most ...

AUD/USD

A bit of volatile movement in the dollar with reports that Gulf states planned to move away from dollar pricing of oil, but now Kuwaiti Oil Minister Sheikh Ahmed Al-Abdullah Al-Sabah said that they have no plans to move away from dollar pricing. ...

EURUSD

Was reading that Deutsche Bank's Macro Strategy Group recommended emerging-market assets, high-yield bonds and gold as likely to benefit from a "global sweet spot" of economic recovery and central-bank liquidity, which it called "the perfect mix for ...

Gold Discussion

Friday’s weekly CFTC update: Speculative long positions outnumbered short positions by 231,386 contracts, down 5,363. Miners, producers, jewelers and other commercial users were net short 275,234, down 12,376 contracts. No huge change, so I ...

Gold Discussion

Japanese Finance Minister Fujii is drawing criticism for originally favoring appreciation in the yen and now stating that the BoJ will intervene in foreign currency markets and will act to restrain the yen if it shows excessive moves in a biased ...

USDJPY Prediction

The language coming out of the G-7 wasn’t especially critical or harsh against the dollar weakness and volatility – as such I’d expect continued dollar weakness. French Finance Minister Lagarde, ECB President Trichet and US Treasury Secretary ...

EURUSD

Euro is still stronger on the day despite a weaker than expected ADP number – private sector job loss was 254k vs. the 240k survey estimate. Possible rationale is the Q2 GDP was revised upwards to a loss of 0.7% vs. the previously stated 1%.

EURUSD

Aussie dollar gained 9% vs. the USD this quarter. With the solid fundamentals now being reported in Australia, it makes sense for the Reserve bank to start withdrawing its easing policies. The growth picture is quite positive and investors expect ...

AUD/USD

Reading speculation that the BoJ comments were a head fake, given to appease exporters and manufacturers and really the BoJ truly wants a stronger yen long term. As soon as next month the BoJ may decide to let its emergency corporate-debt buying ...

USDJPY Prediction

The soft dollar will continue to support gold prices and will be the driving force for further increases in gold. In the event there is an improving economy, then inflation concerns should drive investors into gold. In the event the economy takes a ...

Gold Discussion

The dollar’s share of foreign currency reserves fell to its lowest level since the introduction of the euro in 1999. It share is now 62.8% while the euro gained to 27.5%. The dollar obviously is still the main reserve currency, but we are seeing ...

EURUSD

The US data disappointed yesterday with the consumer confidence number coming in lower than expected causing losses in US equities and a rally in the USD. A breach of the support level in the $1.45 to $1.453 area will be difficult. The employment ...

EURUSD

Point of concern for gold from a demand point of view: Indian imports, the world’s biggest buyer, probably fell for the fifth month in a row during September as the price of gold is keeping jewelers from buying. India has imported less since April ...

Gold Discussion

The Aussie dollar was up against all 16 major currencies as retail sales climbed 0.9% in August after having dropped by the same amount in July, beating estimates of 0.5%. I consider this to be a very strong result and shows the continued strength ...

AUD/USD

Looking at Bloomberg analyst estimates for Japanese interest rates: 14 of 16 analysts expect interest rates to stay the same at 0.1% through the end of 2010. Reports Tuesday showed consumer prices fell a record 2.4%. A strong yen and deflation could ...

USDJPY Prediction

The strengthening dollar is cutting into demand for gold as the dollar reached a two week high against the euro. The correlation between gold and dollars has been very high as of late and will probably continue to follow the movements in the ...

Gold Discussion