Archive for the 'Currency' Category

Gold Price Update

In my last post on the gold price I said the action was looking quite weak, and that it could probably hit $667 or even lower before bouncing. Well, unusually, it looks if I was right! Gold hit $667 today, and bounced up a little. If it doesn’t bounce back hard, it may well drop further.

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It does look quite unstable at the moment, and the MACD still hasn’t dipped into negative territory. Support below $667 is $640, so I’m not looking forward to it dropping if it does. In this eventuality keeping an eye on the long term situation is key, as the fundamentals of the gold market are still stacked to the upside, something that’s not likely to change soon.

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The Dollar has been on a bit of a bounce lately, it remains to be seen if this continues. If it stalls, look for gold to benefit. If it continues to strengthen, gold will have a tough ride.

Links – 30/04/07

The Weakening Dollar(Money and Such)

Have you guys traveled abroad recently? I am currently on an international business trip, visiting a place that I know very well and in which I have previously spent a great deal of time. With the Dollar depreciating against most major currencies international travel has become much more expensive – our Dollars buy a lot less abroad than they used to.

UK Housing Crash(UK Housing Bubble)

Wave goodbye to the housing bubble and say hello to the crash. The great correction has begun. In six out of ten regions in England and Wales, house prices have stagnated. House prices are rising at a slower rate than CPI inflation, which is currently 3.1 percent. House prices are also rising more slowly than wages.

Continue reading ‘Links – 30/04/07’

The Crash Cartoon Series

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Like this post? Have a look at:

5 ways to make money in a falling housing market

Money Flow Chart

Golden Opportunity

 

Dollar Crash

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Inflationary Environment

The big news in the UK yesterday was the Office of National Statistics releasing the CPI figures for march (ONS news release(pdf)). CPI was at 3.1%, a figure that resulted in shock across the markets – it was widely expected that inflation had peaked at 3.0% earlier this year. As per the arrangements with the government, any month in which inflation is more than 1% out from the 2% target, the governor of the Bank of England must send a letter explaing to the chancellor why (Mervyn’s Letter(pdf)). This was followed by a response from the chancellor Gordon Brown (Gordon’s Response(pdf)). Both letters are quite illuminating, and worth a read.

Continue reading ‘Inflationary Environment’

Links – 16/04/07

Links for 16/04/07

Continue reading ‘Links – 16/04/07’

Links – 14/04/07

Dollar dented(FT)

The dollar lost ground on all fronts on Friday as global interest rates and the dangers of the carry trade were brought into focus ahead the weekend G7 meeting in Washington. The chorus of warnings against the yen carry trade, where Japan’s low-yielding currency is sold to fund purchases of higher-yielding assets, grew as the head of the International Monetary Fund lent his voice to the dangers of the risky strategy.

Time to buy property(thesuns financial diary)

Savvy stock market professionals know that the best time to buy is when everyone else is selling. The same holds true for real estate investing. A strategic mortgage refinance plan can help you take advantage of opportunities in the current buyer’s market by freeing up the money needed to snag property at bargain prices.

Shorting the DOW opportunity(bullnotbull)

The shorting opportunity of a lifetime is near. You can see it in the growing divergences between the stock market and the actual economy. The Dow is precariously perched near its all time high, having cruised effortlessly to 12,000 and beyond, but its gangbuster growth has stalled of late. While it is normal for a market to consolidate after a run like we’ve seen over the past three months in the Dow, the meaning of this pause is yet unclear. Is this is a consolidation before a further push higher, or is this market simply churning as ownership changes hands from strong to weak, leading to an inevitable plunge?

9 times salary mortgage(thisismoney)

Muhammed Uddin, branch manager at the independent broker First Solutions, in Cambridge, said: ‘There have been cases where my clients have been offered more than nine times their salary.’

Dollar Slide accelerates(telegraph)

The dollar’s slide against most of the world’s currencies gained pace today as dealers worried over the outlook for the US economy. Sterling and the euro are leading the charge against the embattled dollar, as interest rates are still expected to head higher in both Europe and the UK.


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