Forex Playbook: July 18-24 – The Bears are Back

Equities markets closed lower in trading last week, as Friday’s violent selloff knocked nearly 3% off each of the major US indexes. The Dow ended the week lower by 1% while the S&P 500 lost 1.2%. Of primary concern was the earnings release from Bank of America (NYSE: BAC), which warned of massive losses tied… Continue Reading

Forex Playbook: July 11-17 – Swiss Bank Intervention Nears

Riskier assets enjoyed broad gains last week, which we anticipated, as shorts booked profits following the steep declines of weeks prior. The major US indexes each gained around 5%  and are now trading toward the higher end of recent ranges. In the Forex space, the euro continued to post gains against the US dollar, last… Continue Reading

Forex Playbook: July 4-10 – Short Week May Bring Short Covering

A shortened week of trading in the U.S. will commence tomorrow, with investors still on edge over last week’s Jobs Report. Moreover, the selling momentum that has seen the major US indexes decline in 9 of the last 10 trading sessions has certainly served to reduce confidence on both the individual and corporate levels. The… Continue Reading

Forex Playbook: June 27-03 – It’s the jobs, stupid!

Equities markets fell sharply last week, as key economic data continued to disappoint. The Dow closed lower on 4 of the 5 trading days, losing 2.9% cumulatively, while a similar performance for the Nasdaq and S&P 500 resulted in nearly 4% declines apiece. However, across the risk spectrum, losses were not nearly as uniform. Among… Continue Reading

Forex Playbook: June 20-26 – Bulls and Bears to Collide

Riskier assets pushed higher for the second straight week, as the markets yet again shook off  an onslaught of ominous economic data. The Dow Industrials posted gains of 2.35% while the S&P 500 added 2.37%. The tech-heavy Nasdaq fared only slightly better, adding 2.95% on the week. Risk appetite was evident beyond the equities space,… Continue Reading

Forex Playbook: June 13-19 – Choppy Trading Ahead of Next Leg Down

Broad-based gains for riskier assets last week, amid deteriorating economic indicators, may prove a costly lesson in the weeks ahead. Both the Dow and S&P 500 enjoyed gains in excess of 2.50% apiece while the tech-heavy Nasdaq proved the laggard among the major indexes, posting a gain of 1.12%. Rising valuations for riskier holdings went… Continue Reading

Forex Playbook: June 6-12 – Beware the Double-Dip

The next leg down for riskier assets is now upon us and investors should prepare themselves for further, significant declines going forward. Global equities markets will continue to descend toward their 2009 lows, as the global economy almost certainly faces a severe contraction in the coming months. The latest culprit in the ongoing selloff of… Continue Reading

Forex Playbook: May 23-29 – Global Economy on the Brink

Overview Risk appetite faced near destruction last week, with global equities and commodities valuations suffering their worst losses in recent memory. Including Friday’s “rally” – which was more of a panicked scramble to cover shorts in the final 20 minutes of weekly trading – the Dow and S&P 500 each declined over 4 percent  while… Continue Reading

Forex Playbook: May 16-22 – Eurozone, Global Credit Markets in Focus

Overview The US dollar continued to push higher last week, alongside declining commodities prices, as the clouds of uncertainty further obscured the so called “global economic recovery”. Despite an unjustifiably optimistic showing for equities markets through much of the week, sensibility was restored to the marketplace toward week’s end. The Dow and S&P 500 resumed… Continue Reading

Dire Consequences: Euro to Test Parity Against US Dollar

Royal Bank of Scotland is lowering its forecast for the euro against the US dollar, stating that the shared currency “can easily head through [dollar] parity.” Unfortunately, the consequences of such a scenario jeopardize far more than the European Union’s reputation alone. Alan Ruskin, head of foreign-exchange strategy at RBS Securities, is revising his forecast… Continue Reading