FX Weekly: 5th December 2011

• Oil and Gold remain the most volatile contracts as risk tolerance reversed course. Commodity currencies and Scandies were the pack leaders last week in G20 FX – most strength seen against USD and JPY

• ECB expected to cut interest rates again (Thu) and provide additional liquidity. Political progress also a key focus – full fiscal union would be hugely EUR/USD positive

• Periodic Chinese activity data could be crucial if global economic slowdown is worse than feared

• On the political front, near-term focus is on Italy’s reform agenda to be unveiled today and on the new Spanish government’s program once it takes office on December 22nd

• Multiple central bank meetings coming up: RBA and BoC on Tuesday, followed by RBNZ, BoE and ECB on Thursday. The RBA could be market moving because a cut is fully priced but the bank may not ease so soon after its previous move

Psychology of FX Trading

Webinar held for Alpari (UK) clients in November 2011 discussing the importance of Psychology in Trading.

Economic Games in Political Circles

With the largest financial crisis in living memory behind us, a larger, more pervasive crisis is setting in as governments continue to privatise public gains and nationalise private losses.

Is the US dollar losing its status as the defensive asset of choice?

Resistance is Futile

As nations compete for export-led growth, central banks are facing increasing criticism for manipulating their domestic currencies.

FX: The Ultimate Trading Indicator

As financial markets stutter forward amid growing private and national debt, traditional currencies are in danger of suffering a confidence crisis, but, given their dynamics, can also be a leading indicator for all asset classes.

The Global Economy Post-Crisis: New Problems and Fresh Opportunities

The global economy is returning to pre-crisis norms in terms of volatility and confidence, but with the balance of power shifting towards Emerging Markets and countries that have largely avoided the effects of the credit crisis, can financial markets bear the strain?

Dollar Bears Beware

The Greenback is likely to bounce back, as systematic risk has not yet left the building.

Tough Times, Good Opportunities

As the global recovery falters as a result of mushrooming public debt in the developed world, emerging economies are in a prime position to benefit.

Confidence at a Premium

Bond Yields Are Indicating a Disorderly Recovery

As bad as it gets?

Today, George Osborne produced the most fiscally austere and severe budget in post-WW2 UK history.

Forex trading finding its place in the Middle-East region

Foreign exchange (forex) trading is quickly becoming one of the most popular forms of investment in the Middle East, particularly in the UAE.

The Recovery Story Begins to Dwindle

Since the beginning of the financial crisis in mid-to-late 2007, almost every market participant was wondering where exactly prices would stabilise and in turn, how the recovery would shape up.

A Year of Two Halves

FX in a Brave New World

The nature and breadth of the economic crisis are re-writing the rules of the game for all asset classes and challenging the foundations of accepted economic theory. In an environment where currencies are gaining influence, the opportunities are potentially greater than many realise.

Dollar Crisis or Bearish Dollar?