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The Financial Times reported Tuesday that the FTSE index group has created an index of eleven currencies and two commodities for use by investors to hedge against currency and inflation risk. The “Wealth Preservation Unit” includes the world’s seven largest currencies and those of Brazil, Russia, India and China, as well as a 4.5 percent weighting in gold and oil.
The euro zone crisis has been the leading headline for more months than I care to count, but now that the second round of Greek bailouts is officially underway, the world can now return to business as usual, right? If it was only that simple.
It may seem odd that legendary investor Jim Rogers has been as bullish on Euros and dollars as he is bearish on European and American stocks. But the recent rise of the Euro and the fall of the yuan play to the advantage of China.
No matter what news outlet traders are plugged into, the euro is everywhere. When I see headlines on a particular theme dominating the news cycle — day after day — I get concerned if my position is getting crowded. But on the flip side I clearly do not want to leave money on the table or miss out on a big move. So what is a trader to do?
The big story in currency markets is coming out of Japan, where the yen has been making some impressive moves despite the best efforts of the country’s monetary policy officials to slow it down.
A quick technical look at the U.S. dollar against the Mexican Peso (USD/MXN) traders will find a completed head and shoulders pattern on the daily chart.
The New Zealand dollar otherwise known as the kiwi continues its climb higher in the U.S. session after a pullback where price appeared to be getting ready to roll over. Risk sentiment has come back into focus with Greek lawmakers approving austerity measures to being the process of securing the next round of bailouts for the financially devastated country.
European banks like Paribas (BNPQY, quote), Unicredit (UNCFF, quote) and Credit Agricole (CRARY, quote) are soaring on relief after the Greek Parliament passed austerity measures. Although this is step one of many, the euro as well was lifted in overnight trading sending a traders a like a small ray of hope that the cloud of a very messy crisis lifts soon.
