Browsing All posts tagged under »foreign exchange«

Japanese Central Bank- Throwing good money after bad

November 11, 2011

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The Japanese Yen is the flavor of the day, the week, the month and the year. Whenever there is even a hint of economic and/or political commotion, the Yen is the sought out asset by international investors and speculators.  It is an interesting phenomenon, considering that Japan’s budget deficit is almost twice the size of […]

European Sovereign Debt Crisis: Has China Boarded the Train?

October 28, 2011

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As part of a plan to lower Greece’s debt burden, and to try and contain the two year European Union crisis, it has been reported that euro zone leaders have come to an agreement with private banks and insurers.  The agreement imposes upon those banks and insurers to accept a 50% loss on their holdings […]

Don’t look to China to lead the world out of it’s economic woes

October 14, 2011

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For many years and through many recessions, the United States’ economy was the steam engine for the world. It was joked that when the US caught a cold, the rest of the world got the flu. But what happens when the US economy gets the flu?  With economic globalization, the symptoms for regional recessions and […]

The Never Ending Story of European Sovereign Debt Default & Bank Instability

September 15, 2011

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The spiraling financial downfall towards default began with Greece and has spread to Ireland, Portugal, Italy and Spain.  At first it seemed impossible, then unlikely, and now headlines actually predict that Greece is 98 percent likely to default on its sovereign debt.  If Greece defaults, EU leaders and ECB officials will be trying to come […]

The Japanese Yen – Carry Trade or Safe Haven Currency?

August 31, 2011

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Currency Carry Trade – A strategy in which investors sell a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate and investment opportunities. Safe Haven Currency – A currency that attracts capital investment and speculation flows, in times of uncertainty and disruptive […]

Foreign Exchange Market Roller Coaster

July 8, 2011

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Years ago there was an old adage proclaiming that “Britannia Rules the Waves”.  It referred to the era when The British Empire ruled supreme on the seven seas and thus extended its influence all around the world. Today, when speaking of the world’s financial stability, the adage should be “Uncertainty Rules the Waves”.  The stock, […]

The Foreign Exchange Market’s Economic Uncertainty

June 24, 2011

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The slowdown of the US economic recovery (latest estimates 2.7-2.9% instead of 3.1-3.3%), and the debilitating effects of Greece’s uncertain bailout are the driving and opposing forces creating havoc and volatility in the current foreign exchange markets. The Federal Reserve confirmed that it’s second round of QE2 (“quantitative easing” – a $600 billion bond purchase […]