Research
USD/CAD Forecast: Price Action Signals Bearish Continuation
The rally in USD/CAD remained below the broken triangle, showing that bulls are still in charge. The 1.02 level then failed as support and the market continued lower to test the week’s low at 1.0133. The RSI reading in the 1H chart failed to sustain a break above 60, and is now returning below 40, suggesting bearish continuation momentum…
The Decline of China in the Export Manufacturing Sector
Leading up to the 2008 financial crisis, the Chinese economy would have been characterized primarily by a manufacturing sector that relied on exports as a means for improving its trade surplus. This was aided by the country’s accumulation of foreign exchange reserves as a means for driving down its own currency and making its products cheaper for foreign customers. The credit crisis, however, had drastic effects on the export machine and this is not simply the result of a lack in consumer demand (something typically seen during recessionary periods). There is mounting evidence that China is losing its position as the primary engine in global manufacturing. China’s rise on the global stage has been based on the production of low end goods and cheap labor. This wealth of human resources was multiplied by the Chinese government’s willingness to manipulate its currency despite harsh rhetoric from global leaders to allow the Yuan to appreciate in open markets.
Volatility To Pick up Into Final Session of Week As US Data Digested
Markets have been locked in some consolidation over the past 24 hours, but things could pick up into the final session of the week…
FOREX: G20 in Focus on Rumors IMF Role in EU Crisis Fix to Increase
All eyes are looking ahead to the weekend’s G-20 finance ministers’ meeting amid rumors of plans to use the IMF to deliver emerging-market funds for EU crisis aid.
Friday Headlines Could Start to Weigh on Risk Correlated Assets
Markets have been locked in some consolidation over the past 24 hours, but we could soon start to see a pullback in risk sentiment as we head into the weekend…
Usd/Nok Pullbacks to 5.50 Viewed As Formidable Buy Opportunity
A daily overview of technical developments in the regional currencies. Take a look inside for the latest scoop on the Norwegian Krone and Swedish Krona.
Dollar Slows its Descent, Faces Critical Point for Next Phase
Confidence in the market is completely absent. Rather than seeing the balance in sentiment tip from risk appetite to risk aversion; we see that there simply isn’t conviction in any single bearing for capital placement. This lack of interest will almost always leave the greenback sidelined. When uncertainty overtakes the markets, investors will either park their funds in assets with tolerable yield while avoiding exceptional risks.
Brent Crude Oil Price at Key Technical Level and Wedge Resistance
Oil prices have been riding a bullish run with equities in this last couple of weeks, but is at a key technical level as it hovers above 111.00 and almost hit 130. The daily chart shows several resistance factors at hand. 1) We have a declining wedge resistance near 113. 2) The 200-period simple moving average resides just above 111.00
Japanese Yen Surges as Risk Goes on the Defensive- Loonie Heavy
Weaker than expected Chinese data and renewed concerns about global growth prospects have put a halt to the recent rally in risk. Subsequently the yen and the dollar continue to outperform their counterparts in to afternoon trade in New York.
