Euro Dollar Give and Take

EUR-USD 4 Hour Chart (click to Enlarge)

In one months time the Euro ran up approx 2300 pips and on Friday gave back over 800! This after the Euro fell from the 1.4800 range from September 22 to make lows around 1.2300 back on October 27 - These are amazing one month moves!

Monthly Charts Show the Picture

Pound Gets Pounded - Falling Hard  

Above: EUR-GBP Monthly (Click to Enlarge) : Euro - Pound Screaming Towards Parity!

Canadian Loonie Analysis Trend Continues 

USD-CAD 30 Min Charts (click to enlarge) The Down Trend Channel continues - Charts from Dec 15, 16, and 19th show the progression

Oil and the Dollar

12:30am (eastern US time) - consolidation seen on almost all majors since the NY close. Extremely tight range.  Dollar is ”assumed” to be under pressure, and I suspect that to be the primary cause of the historic spike in Oil yesterday.

Assumptions with the market can often be wrong - especially in the short term. What you expect to happen may be right - but the market may take the long road getting there.

Hedge Funds may be next major issue as redemption’s are reported to be increasing.

Do you think Paulson and Bernanke have addressed the Hedge Fund Issue within their $700 Billion request?  Bernanke and Paulson are scheduled to be addressing the Senate Banking Commitee Tuesday and Wednesday. Get your popcorn out, this should be good as Barney Frank gets ready to grill. It’s hard to feel sorry for them - they should have seen this coming - alot of people should have seen this mess coming…

All the Central Bankers and the IMF know full well the implications of the hedge funds, and the G-X meetings communiques would almost always have a standard mention addressing hedge funds as a potential “issue”. I sure hope they have a handle on it.

Safe Trading - or standing on the sidelines

What Would You Do With Interest Rates?

The Federal Reserve is scheduled to make an interest rate announcement tomorrow afternoon - and it comes at a time when Ben Bernanke is walking a tight rope of what to do - and say.  The Dow dropped over 500 points on Monday - the worst drop since the NYSE reopened after the attacks of September 11th.

Free Webinar - Tune in to Live Coverage of the FOMC Announcement visit www.ienweb.com to register

Unexpected Consequences - AIG Looks for Billions

AIG has been downgraded by Moody’s as one of the United States largest Insurance companies has been denied access to federal funds and not even access to a “bridge loan” that would give the company time to sell some assets - However, it is being reported that AIG is in need of $75 Billion

Oil Drops well below $100 - Dollar Hangs Tough

The US Dollar has given up some ground - but surprisingly not that much. It appears that the unwinding of several trades and the need for cash transactions may be holding the greenback up as a necessary instrument of trade. Oil positions are likely being liquidated and so all the selling is dropping the price.

Free Webinar - Tune in to Live Coverage of the FOMC Announcement visit www.ienweb.com to register

 US Dollar Stays Steady Despite Bad News

The US Trade Deficit jumped almost 6% and Jobless claims were larger than expected, However the US Dollar stayed stable and gave up little ground. The Fed Funds Futures Rates are pointing to a possible interest rate cut which may cut the Dollars recent gains.

Oil Testing Support at $100

OPEC is threatening production cuts while Hurricane Ike is threatening the Gulf of Mexico’s Oil facilities and shoreline. One would expect the US Dollar to drop with such news - However, this is further proof that the correlation between the US Dollar and Oil is strong.

FX Market Update Video for September 11th 2008 with Fundamental and Technical Analysis

Too Big To Fall - Too Big To Fail?

This morning MSNBC re-broadcast the terror of September 11th as the world was changed by a small group of overgrown adolescents that were in desperate need of finding some virgins….. Meanwhile - CNBC barely mentioned the anniversary - but seems to be delighting in the destruction of other financial firms. Seems as if too big to fail needs to be matched with the Bigger they are the harder they fall.

CNBC Vultures Pick on Lehman Brothers while the world looks on…

The image of a “pitbull” seems to fit the media these days, as certain shows seem to latch onto a story and refuse to let go until the life of the story is completely extinguished.  At CNBC - there seems to be a fixation with seeing Lehman Brothers extinguished - headed by Charlie Gasparino.  But almost the entire staff seems to be feeding a frenzy of fear to anyone that happens to tune in for more than 5 minutes. 

 Jerry Furst is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.