The exchange of artillery fire between North and South Korea is the biggest story in the financial markets today. Investors never respond well to geopolitical tensions and in the case of forex, they usually react to geopolitical risks by dumping the currencies of the countries in question. As a result, the South Korean [...]

Posted in Dow, dollar safe haven, forex blog 1 Comment »

Stocks rallied significantly yesterday, leading many people to wonder if this is “the bottom” in equities. Given that none of the problems in the U.S. economy have been resolved, I think that this is a bear market rally.
With that in mind, it is interesting to look at how much equities could rebound [...]

Posted in 2009 eurusd forecasts, Dow, eur/usd, euro, forex blog No Comments »

I read this fascinating study by Barclays Bank this morning on how the performance of the Dow in the month of January can set the tone for trading throughout the year. In the first month of 2009, the Dow Jones Industrial Average fell 12 percent. According to Barclay’s study, if there is negative [...]

Posted in Dow, forex blog 10 Comments »

The US unemployment rate soared to a 15 year high in the month of November as non-farm payrolls incur the steepest slide in 34 years. Although currencies and equities sold off aggressively following the release of the labor market numbers, they clawed their way back to end the US trading session in positive territory. [...]

Posted in Bernanke, Dow, Forex, Forex News, US Dollar, forex blog, non-farm payrolls No Comments »

With the Dow Jones Industrial Average hitting 5 year lows today, the burning question on everyone’s mind is, how far can stocks fall.
This is a perfect time to republish a post that I wrote in the middle of October titled DJIA: Does the Past Offer Hope?
Here is a very interesting chart published by [...]

Posted in Dow, Forex, Forex News, Forex Technicals, Stock Market, US Dollar, euro, forex blog, usd/jpy 1 Comment »