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USD falls like a stone vs €UR and most Asian Currencies fall vs USD


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Finance is all Greek to me but suspect may be a case of euro gaining more than dollar falling? But do not closely follow the news of the world anymore so without your somewhat less than detailed report would not have had to worry about it. facepalm.gif

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I dunno. The Dollar is still higher against the Euro than it was a year ago and in fact than it was just a couple of months ago. Could it be just a normal correction, the $ having gone up so much?

As for Asia, it's really weak with worries on the horizon so I don't know...

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i can't see any tangible reason why the €UR is suddenly strengthening. no special good news from the €URo-zone except the expected [only temporary] bail-out of Greece. nothing has changed fundamentally.

interesting in Asia is that the Chinese currency holds up quite well whereas Baht, Rupiah, Rupee, Ringgit and even SingDollar are weak. especially the Ringgit suffered minus 11% in just 15 trading days. i wonder when Mahathir comes out from his corner and blames (as he did in 1997) the Jews for the Ringgit's weakness.

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I dunno. The Dollar is still higher against the Euro than it was a year ago and in fact than it was just a couple of months ago. Could it be just a normal correction, the $ having gone up so much?

As for Asia, it's really weak with worries on the horizon so I don't know...

a correction could be one of the reasons that the eggsburts of GoldmanSucks, JPMorgan and a bunch of other multinational bank "@nals" are standing now "stark nekkid" with their forecasts "parity with € soon and then 0.80-0.85 smile.png

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I dunno. The Dollar is still higher against the Euro than it was a year ago and in fact than it was just a couple of months ago. Could it be just a normal correction, the $ having gone up so much?

As for Asia, it's really weak with worries on the horizon so I don't know...

a correction could be one of the reasons that the eggsburts of GoldmanSucks, JPMorgan and a bunch of other multinational bank "@nals" are standing now "stark nekkid" with their forecasts "parity with € soon and then 0.80-0.85 smile.png

I got out of the markets when the Dow was about to hit 18,000 not because I'm smart but because I'm a coward, LOL. Other than personal belongings I'm 100% cash (USD), and some real estate especially my home.

I am 100% USD because that's what I buy and sell in and it protects me from currency value swings. I stopped "investing" (gambling in rigged games) some time ago because I have better things to do with my energy.

Cheers.

Edit. Oops, I do have some baht in a bank in Thailand but only for convenience and not enough to worry about. That has been a loss by percentage of value but not in the big picture.

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I got out of the markets when the Dow was about to hit 18,000 not because I'm smart but because I'm a coward, LOL. Other than personal belongings I'm 100% cash (USD), and some real estate especially my home.

I am 100% USD because that's what I buy and sell in and it protects me from currency value swings. I stopped "investing" (gambling in rigged games) some time ago because I have better things to do with my energy.

Cheers.

i'm "only" laugh.png 96% in Dollars and quite happy with it albeit only 48% is in cash. just can't refrain from making a fistful of bucks (dog food and vets are rather expensive) in high yield / high risk assets ermm.gif

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$ weakness is driven mainly by a change in FED interest rate expectations due to weak Global economy.

no matter what Yellen says, most @nals keep on repeating the mantra "FED ups in September!".

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Dog food stocks. That's what I'm missing, LOL.

Was reading recently about a woman who set up a business providing home kitchen cooked gourmet food for dogs and has watched her business boom.

I bet a few people thought she was barking mad when she started.

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The rise of the euro as a safe haven

The euro has been a beneficiary of emerging market currency woes and fears of a Federal Reserve rate hike. The single currency rallied to a six month high against the US dollar, hitting $1.1499 today, a level not seen since February.

Both the euro and the yen are the beneficiaries of "risk aversion caused by China’s surprise move this month on the yuan and from falling expectations that the Fed will hike interest rates,” said Mansoor Mohi-uddin, senior markets strategies at RBS.

"In a world where central banks appear to be losing control, the BoJ and ECB are still considered to hold sway and offer defensive qualities", says Nick Lawson at Deutsche Bank.

http://www.telegraph.co.uk/finance/markets/11819812/Markets-Black-Monday-China-panic-grips-investors-rouble-collapses-and-stocks-undergo-selling-bloodbath-live.html

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$ weakness is driven mainly by a change in FED interest rate expectations due to weak Global economy.

no matter what Yellen says, most @nals keep on repeating the mantra "FED ups in September!".

market expectation is Dec earliest. Not many economists still believe Sep
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$ weakness is driven mainly by a change in FED interest rate expectations due to weak Global economy.

no matter what Yellen says, most @nals keep on repeating the mantra "FED ups in September!".

market expectation is Dec earliest. Not many economists still believe Sep

because they changed their mind last friday evening after supper.

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Overview: August 24, 2015
New week, new lows for the U.S. currency. America’s buck crashed to fresh multimonth lows against its biggest peers as intensifying worries about global growth suggested the last thing on the Fed’s mind right now was a rate hike. The dollar of late has tended to flock with the higher-yielding crowd as the improving U.S. economy has the Fed on track to raise interest rates. With global worries on the rise, it suggests the Fed may opt to wait longer to raise rates, which has diminished a major source of strength for the greenback. The wild, profit-impacting swings in market volatility have been heightened by thinner summer markets when many participants take vacation. A big test of dollar sentiment will arrive late next week when America releases its next monthly jobs report. Expect uncertainty to remain high, however, with panicky markets seemingly more interested in capital preservation than with positive U.S. fundamentals.
EUR
The euro has found a big positive in the latest market upheaval that has prompted many to exit profitable trades in the U.S. dollar to cover losses elsewhere. The euro soared to six-month highs against the greenback as heightened worries about global growth sparked a stampede out of risky assets, like carry trades, which were funded using the low-yielding single currency. As long as market turmoil persists, the euro could continue its recent ascent.

From an XE daily "Currency Market Analysis" mailer - for what it is worth...........

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$ weakness is driven mainly by a change in FED interest rate expectations due to weak Global economy.

no matter what Yellen says, most @nals keep on repeating the mantra "FED ups in September!".

market expectation is Dec earliest. Not many economists still believe Sep

because they changed their mind last friday evening after supper.

I don't know what you are referring to about last Friday. Economists changed their minds after the minutes from the last FED meeting were published. This was on Wednesday, August 19. 3 weeks after the last FED meeting as per common practice of the FED.

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market expectation is Dec earliest. Not many economists still believe Sep

because they changed their mind last friday evening after supper.

I don't know what you are referring to about last Friday. Economists changed their minds after the minutes from the last FED meeting were published. This was on Wednesday, August 19. 3 weeks after the last FED meeting as per common practice of the FED.

the "esteemed guru" Bill Gross (from Pimco to Janus) is still preaching FED hikes rates in september after the minutes were published. "last friday" was a joke.

Bill Gross: Fed will hike rates in Sept as financial conditions a priority

http://www.reuters.com/article/2015/08/19/us-janus-fed-gross-idUSKCN0QO1N020150819

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Was it just me or did anyone else see what I saw this morning, very briefly, on the Yahoo Currency Converter where I was monitoring the GBP against the THB.

In the space of a minute or two, the pound plummeted from just over 56bt to 49bt. I checked the USD immediately and it went from around 35bt to 29bt.

I think it must have been a temporary glitch on Yahoo because minutes later both GBP and USD went back up to their 'pre-plummet' levels.

I can't think it was a real 'market adjustment' to have happened so suddenly and dramatically.

Quick as it was, it was still enough time to almost give me a bloody heart attack!

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Change 1: With the market recovery today, the Fed just might raise rates. They like to be seen as addressing the real economy, not the stock market. I now imagine the chances as 60% for the raise and 40% for no raise. Maybe 75 basis points.

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because they changed their mind last friday evening after supper.

I don't know what you are referring to about last Friday. Economists changed their minds after the minutes from the last FED meeting were published. This was on Wednesday, August 19. 3 weeks after the last FED meeting as per common practice of the FED.

the "esteemed guru" Bill Gross (from Pimco to Janus) is still preaching FED hikes rates in september after the minutes were published. "last friday" was a joke.

Bill Gross: Fed will hike rates in Sept as financial conditions a priority

http://www.reuters.com/article/2015/08/19/us-janus-fed-gross-idUSKCN0QO1N020150819

I agree with Gross which I know is not the consensus opinion. My reasoning is the Fed needs to start reloading their gun for worse economic conditions because their interest rate policy ammunition is spent. I think the correction the markets have experienced has more to do with Fed expectations than it does China, and if that's so, the reaction is already happening so why not begin to raise rates and stop being reactive to the tantrum throwing equity markets? OTOH, they don't seem happy enough with inflation numbers.

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Was it just me or did anyone else see what I saw this morning, very briefly, on the Yahoo Currency Converter where I was monitoring the GBP against the THB.

In the space of a minute or two, the pound plummeted from just over 56bt to 49bt. I checked the USD immediately and it went from around 35bt to 29bt.

I think it must have been a temporary glitch on Yahoo because minutes later both GBP and USD went back up to their 'pre-plummet' levels.

I can't think it was a real 'market adjustment' to have happened so suddenly and dramatically.

Quick as it was, it was still enough time to almost give me a bloody heart attack!

It depends on what you are looking at, or I should say what Yahoo are using as a data source. Tick charts can show very significant short term movements which you would not see on a standard time based, say one hour chart.

If it is something that you are interested in then use one of the established forex websites rather than a currency converter.

"Data-based chart intervals allow traders to view price action from various data intervals instead of just time. Tick, volume and range bar charts are examples of data based chart intervals. These charts print a bar at the close of a specified data interval, regardless of how much time has passed. Tick charts show a certain number of transactions. Volume charts indicate when a certain number of shares or contracts have traded. Range bar charts represent when a certain amount of price movement has occurred. Let's take a closer look at these data-based chart intervals and how we can use them to our advantage."

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