Blog

Foreign exchange, the world’s biggest market, is shrinking

By The Trader | 12 February 2016

 LONDON The foreign exchange market’s status as the world’s largest, built up over decades of rampant globalization, deregulation and growth in financial services, is unlikely to be relinquished any time soon. But the glory days are over. Overall market volume and employment levels at the biggest banks trading currencies are shrinking, as tighter bank regulation, the fading emerging market boom and a secular slowdown in world growth and trade take their toll. Industry figures show the number of traders employed in Europe at the top 10 foreign exchange banks is down 30 percent over the last three years. Figures from…

Read More

Iran Says No Thanks To Dollars; Demands Euro Payment For Oil Sales

By The Trader | 08 February 2016

Iran enjoys trolling the United States. In fact, it’s something of hobby for the Ayatollah, who has maintained the country’s semi-official “death to America” slogan even as President Rouhani plays good cop with Obama and Kerry. The ink was barely dry on the nuclear accord when Tehran test-fired a next-gen surface-to-surface ballistic missile with the range to hit archrival Israel, a move that most certainly violated the spirit of the deal if not the letter. Two months later, the IRGC conducted live rocket drills in close proximity to an American aircraft carrier and then, on the eve of President Obama’s…

Read More

Emerging Currencies Rally as Dollar Selloff Buoys Risk Appetite

By The Trader | 05 February 2016

Emerging-market currencies rose to the strongest level against the dollar in a month as a slowdown in U.S. services expansion spurred speculation that the Federal Reserve will delay raising interest rates. Malaysia’s ringgit and South Korea’s won strengthened at least 1.4 percent against the dollar. Turkey’s lira erased this year’s losses. Brazil’s real gained for a second day as the weaker dollar boosted some raw-material prices. Developing-market equities rose after oil rebounded on Wednesday. Hong Kong-listed Cnooc Ltd. and South Africa’s Sasol Ltd jumped more than 5 percent. Anglogold Ashanti Ltd. jumped to a 16-month high in Johannesburg. A two-day…

Read More

The Incredibly Simple Reason to Bail on the Canadian Dollar

By The Trader | 01 February 2016

By Gaurav S. Iyer, IFC Published : January 31, 2016 A Little Hope for the CAD to USD? Is there any hope for a recovery in the Canadian dollar? Well, as unsatisfying as it seems, the fate of the CAD to USD has been tied to several other questions. Only by answering all of them can we figure out how to make huge returns off the sinking Canadian economy. I know most people like to get a quick recommendation and be on their way. Those articles won’t help you make money. They only seem credible because of all the numbers,…

Read More

Insiders Issue Dramatic Warning For Canadian Dollar

By The Trader | 26 January 2016

By Robert Baillieul, B.Comm. Published : January 25, 2016 Could the Canadian Dollar Hit $0.60? If you own Canadian dollars, picture this… You stop in the grocery store after work. CA$7.99 for a carton of milk? CA$9.95 for a small box of cereal? CA$21.00 for two pounds of grapes? Your small bag of groceries rings up for CA$55.00. While leaving the store, you chat with a nice couple from the States. More Americans seem to be visiting these days. In fact, the parking lot is filled with cars sporting U.S. plates. Later that night, you are checking out travel deals…

Read More

Oil Bottoms, Currencies Reverse Course

By The Trader | 25 January 2016

EUR/USD Current Price: 1.0796 View Live Chart for the EUR/USD Market’s reversed course on Friday, as crude oil prices recovered sharply from sub $30.00 a barrel, the lowest in 12 years, to close the week above $32.00 after flirting with $26.00 a barrel  earlier in the week. The movement came one day after the ECB’s announced is willing to add more stimulus in the Euro area, and that they will review their economic policy as soon as next March. The American dollar surged against most of its rivals, helped also by a better-than-expected January prelim manufacturing PMI, up to 52.7…

Read More

China Woes Continue Into The Year Of The Monkey

By The Trader | 07 January 2016

China burned through $108 billion in December China burned through $108 billion in December, according to China’s central bank, as the country tried to stabilize the yuan as it depreciated against the dollar. That works out at to about $3.5 billion per day. That effort didn’t stop the yuan from ending the year down 4.5% against the dollar. And it hasn’t stopped the currency from continuing to decline in the first days of 2016. That said, it has allowed the currency to glide down more gently than it would if the government weren’t propping it up by buying it. The Chinese…

Read More

Asian Markets Reeling On First Trading Day Of 2016

By The Trader | 04 January 2016

So a very Happy New Year to all and let’s hope 2016 shines a little bit brighter than 2015. Well, that’s the theory at least. In reality it looks like a rather gloomy start to the year with markets in China and Japan in free-fall and tensions rising in the Middle East after the Saudi Arabia – Iran episodes over the week-end. On a more cheerful note, things can only get better from here on in – or so we hope.   LONDON, Jan 3 (Reuters) – With crude prices at 11-year lows, the world’s biggest oil and gas producers…

Read More

Japanese Yen Looks For Gains On Investor Swing

By The Trader | 28 December 2015

With the holiday season done for another 12 months (apart from Eastern Europe of course) markets and currencies get back to the daily business of ups and downs. Some currencies will be winners and some will be losers but one thing’s for sure. Whichever way a currency is heading – we can trade it the move. JPY to benefit as investors will turn to IIP surplus currencies FXStreet (Delhi) – Chris Turner, Global Head of Strategy at ING, suggests that the return of Japan’s current account to a large surplus is a timely reminder of Japan’s large Net International Investment…

Read More

2015 Winds Down With A Bang

By The Trader | 27 December 2015

Christmas came and went and some of the markets that never sleep, well, let’s just say they dozed for a couple of days and leave it at that. End of year results coming in and it looks like a being a tight end to 2015. Not long to go now and we kiss goodbye to another year of ups and downs across all the major boards. US Dollar Retreats as Post-FOMC Correction Continues DailyFX – Dec 24, 2015 The US Dollar resumed its post-FOMC downward correction in overnight trade after brief respite in yesterday’s session, falling to the lowest level…

Read More