Currencies Nov 29
11/30/2010 0 comments
Currencies provide insight into how a nation is dealing with the current crisis and the strength of the underlying economies. We are tracking the ETF's that represent eleven different currencies and one basket of currencies.
More details are available on the MyPlanIQ website.
|
Description |
Symbol |
22-Nov Trend Score |
Direction |
15-Nov Trend Score |
|
Australia Dollar |
FXA |
8% |
^ |
6% |
|
Brazilian Real |
BZF |
5% |
^ |
3% |
|
G10 Carry Trade |
DBV |
4% |
^ |
1% |
|
Swedish Krona |
FXS |
4% |
^ |
3% |
|
Swiss Franc |
FXF |
4% |
v |
4% |
|
Mexican Peso |
FXM |
4% |
^ |
3% |
|
Japanese Yen |
FXY |
3% |
v |
4% |
|
Canadian Dollar |
FXC |
2% |
^ |
2% |
|
British Pound |
FXB |
2% |
v |
2% |
|
US Dollar Bearish |
UDN |
2% |
^ |
2% |
|
Euro |
FXE |
1% |
^ |
1% |
|
Chinese Yuan |
CYB |
1% |
^ |
1% |
Most of the currencies rebounded from last week. The exceptions were the British pound, the Japanese Yen and the Swiss Franc.
The British pound jumped last week because there was no similar QE2 activity and now it is dropping as it has to face its own fiscal restraints.
Similarly the Japanese Yen did not drop much last week and has been strong against a weak dollar and is likely to drop somewhat.
The Swiss Franc is going to be impacted by the recovery of the Euro based on the Irish bailout.
Top Three Currencies
The Australian dollar is going to be hurt by moves in China as that is their major customer.
The Brazilian Real recovered from a significant drop last week on the signs of life in the US economy. This is likely to be a volatile for a while.
The G10 currencies are continuing their upward trend with the moves to stimulate economies and signs of life.
Bottom Three Currencies
The US dollar is going to be under pressure with QE2 and uncertain signals as to the strength of the underlying economy.
The Euro saw some relief with the Irish bailout but it is likely to be under pressure with the different nations having different financial stresses.
The Chinese Yuan is also under pressure as government steps in to manage the growth of the economy.
In conclusion, there is a good bounce back after last week but there will continue to be movement as each currency works its way out its current financial constraints.
labels:investment,
Symbols:FXA,FXM,BZF,FXY,FXC,FXF,FXS,DBV,CYB,UDN,FXB,FXE,
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