Archive for January, 2014

Precious Metals Take a Beating After the Fed Tapers

by Christopher Lemieuxon January 30, 2014 9:15 pm GMT
Gold and silver fell over 1.5 percent today on overall dollar strength and higher risk appetite after the Federal Reserve tapers an additional $10 billion, leaving only $65 billion in monthly bond purchases. Although some analysts were thinking the December’s mixed economic data would reduce the likelihood of a taper, “there is no surprise in […]

Intervention Needs to Prop Up the Ruble

by Christopher Lemieuxon January 30, 2014 6:10 pm GMT
The Bank Rossii, only a month ago, was talking about the ruble reaching a point where it would not see central bank intervention and have a market created exchange-rate. However, the massive sell-off in emerging market currencies took the ruble to the woodshed. The Russian central bank bought the most rubles since 2012 and plan […]

Erdogan to Give Rate Hikes a Chance

by Christopher Lemieuxon January 30, 2014 5:50 pm GMT
The boisterous Turkish Prime Minister Recep Tayyip Erdogan said he would give the interest rate hikes a change before changing course to a contingency plan. The rate increase in Turkey’s “main” rates strengthened the lira, but it has weakened since than as the dollar continues to strengthen. Erdogan will be patient only as the lira […]

USDCHF Technicals: 1/30

by Christopher Lemieuxon January 30, 2014 5:33 pm GMT
The dollar has surged above 81 as solid data, combined with another $10 billion taper from the Federal Reserve, as increased sentiment for the greenback. The USDCHF has become a high correlation proxy for the US dollar index, so this can give forex traders an insight to where the dollar may go. The 4H chart […]