Saturday, September 1, 2012

Key points from Bernanke's speech. On the economy


August 31, 2012
  • Stagnation in the labour market is a "grave concern" and that high unemployment may "wreak structural damage".
  • Housing, Europe, and the 'fiscal cliff' pose headwinds.
  • The labour market improvement has been painfully slow and that the economic situation is "far from satisfactory".

  • On quantitative easing, he says:
    • He sees "strong" odds that QE "will make money" for taxpayers.
    • The Fed would "act decisively" in removing stimulus.
    • A big boost in QE may reduce confidence in smooth exit.
    • QE may impair the functioning of the securities markets.
    • The Fed will boost accommodation as needed for growth.
    • Using nontraditional policy tools is challenging.
    • QE mitigated the risk of deflation.
    • QE provided "significant help for the economy".
    • Gauging the impact of QE on the economy is inherently difficult.
    • QE helped fuel sustained recovery in US stocks.

    Tuesday, June 5, 2012

    AUTO SIGNAL APRIL PERFORMANCE

    GLOBAL FX SIGNAL - AUTO SIGNAL PERFORMANCE VS. BIG FOREX FUND PERFORMANCE FOR THE MONTH OF APRIL AND 2012 YTD.

                                   APRIL                    YTD
    AUTO SIGNAL       +9.25%                 +23.48%

    SEE OTHER FOREX FUND PERFORMANCE FOR APRIL.

    Forex Fund Performance

























    WE DID WELL COMPARE TO MOST OF THEM.









    VISIT OUR AUTO SIGNAL SITE: http://bit.ly/nPnAog

    Saturday, May 26, 2012

    GBP/USD AT OVERSOLD LEVEL

    GBP/USD closed at 1.5655 on Friday. This level is very important to watch. If you look at the chart below, you will see that GBP/USD tested this level few times this year and then bounced back towards 1.5950 areas where it found some kind of resistance.

    Now, the question is what it will do this time around?

    Technically, we will be expecting some kind of bounce from this level next week for two main reasons. First, it's been proven that this level is strong support for this pair and also currently, it's in oversold territory. Next week is short week for U.S market due Memorial Day holiday. So, volume will be thin. We have neutral bias on this and will wait for confirmation before taking any long position. Daily close above 1.5700 will give some reason to buy. Below 1.5600 will give bears more reason to sell.

    GBP/USD Daily Chart











    www.globalfxsignal.com

    Monday, April 2, 2012

    PMI as of March 2012

    It's a simple enough calculation -- any country with a PMI above 50 has expanded, while a number below 50 indicates the sector contractred.
    Good news
    America: 53.4
    China: 53.1
    Canada: 52.4
    UK: 52.1
    Austria: 51.5
    Ireland: 51.5
    Brazil: 51.1
    Bad news
    Netherlands: 49.6
    Germany: 48.4
    Italy: 47.9
    France: 46.7
    Spain: 44.5
    Greece: 41.3

    Monday, March 19, 2012

    Yen "Carry Trade" in play..

    Yen "carry trade," investors are borrowing money in yen, where rates are low, and exchanging it for currencies in countries where rates are high—such as Australia, Canada and Mexico—profiting from the difference. Investors can also execute a carry trade by borrowing the lower-yielding yen to buy bonds denominated in higher-yielding currencies, such as local-currency government debt in places like Mexico and Brazil.

    Tuesday, January 10, 2012

    EURO Predictions by largest banks

    None of the leading FX forecasters see the Euro imploding, in fact JPMorgan see it finishing at 1.35 v the dollar..

    The 17-nation currency lost 2 percent after erasing a gain for the year as recently as November. The most-bearish forecaster sees the euro at $1.17, while the most optimistic call is for a rally to $1.45 by mid-year. The median of the 40 estimates is $1.30 by 2013.

    Predictions

    Wells Fargo – $1.24

    Nick Bennenbroek, who is the head of currency strategy at Wells Fargo & Co. topped the list for the third time in five quarters as measured by Bloomberg Rankings. He expects the euro to drop in the first six months to $1.24, from $1.2961 at the end of 2011

    The European Central Bank will continue to ease aggressively in 2012 as recession approaches in Europe and the U.S. numbers remain resilient. All the fundamentals strongly argue for euro weakness.

    Westpac $1.20

    Westpac Banking Corp. have the second-lowest margin of error for two consecutive surveys, they predict $1.20, as measures by the European Central Bank fail to keep the region’s sovereign-debt crisis from worsening.

    Even with a euro forecast that bounced from $1.37 to $1.24 in 2011, Bennenbroek and Wells Fargo senior strategist Vassili Serebriakov’s belief in the superior U.S. growth gained them the best overall margin of error of 3.98 percent across 13 currency pairs in the six quarters ended Dec. 31.

    Overseas Chinese Banking – $1.35

    Oversea-Chinese Banking was the fourth-most accurate forecaster for the second consecutive quarter and had the second-lowest margin of error on the euro versus the dollar. It expects the euro to strengthen to $1.35 by the year end.

    National Australian Bank – $1.25

    National Australian Bank forecasts the euro ending the current quarter at $1.25. Rob Henderson, chief economist for markets at fifth-ranked National Australia Bank, said by phone from Sydney on Jan. 5;
    The differential between the economic performance of the U.S. and Europe will contribute to some negativity on the European currency. We also expect that the ECB will in one way or another be running looser monetary policy whereas the Fed is pretty comfortable at the moment with keeping policy where it is, so that’s another negative for the Europeans.

    J P Morgan – $1.34

    John Normand, the London-based global head of currency strategy at JPMorgan. Normand, expects the euro to gain to $1.34 by the end of the second quarter.

    The ECB will not make a bargain explicit, but we suspect they will increase debt purchases if reform legislation is implemented. Coupled with lower interest rates the euro should stabilise, then rebound.