Tag: u.s. dollar

8 Unprecedented Extremes Indicate A Stock Market Bubble In Trouble

Posted on by The INO.com Team

By: Elliott Wave International

This article was adapted from Robert Prechter's June 2015 Elliott Wave Theorist. For more charts and detailed commentary, analysis and forecasts from Prechter's latest issues, click here for the extended subscriber version of this report -- it's free.

It is amazing to read assertions from the Fed and others that the stock market is nowhere near being in a bubble. Several aspects of the financial environment are actually so extreme as to be unprecedented. Some indicate a bubble, and others a bubble in trouble.

Below are eight indicators we are watching closely, among others.

1) Record debt in U.S. dollars

Total dollar-denominated debt peaked at $52.7 trillion in early 2009. At the end of Q1 2015, it stands at $59 trillion, an unprecedented amount.

2) Margin Debt at All-Time Highs

Never have more trading-account owners owed so much money, and never have they had such a low level of available funds from which further to draw. Continue reading "8 Unprecedented Extremes Indicate A Stock Market Bubble In Trouble" →

Year Of Shocks: Which Of The Safe Havens Saved The Most?

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


It's only the middle of the year, but we've already seen quite a lot, even for the seasoned investor.

The Swiss National Bank (SNB) kicked off the ball in January for what has proven to be a nightmare year thus far. It's caused a lot of tears and fears among investors, some of them went bankrupt in one day after it let the franc go.

Greece and it's possible leave of the single currency zone has been dubbed the "Grexit." It's added turmoil to the markets over the last month with currencies crosses opening with gaps on the last two consecutive Mondays. The single currency zone has never been so vulnerable from the day of its launch, as Greek precedent can find followers and bring Germany a lot of headaches furthermore.

The United Kingdom also played its role with the Queen's speech this May containing words of possible divorce with the European Union in 2017, which was named "Brexit" (Britain's exit) a la Grexit.

All of the cases mentioned above are episodes of the world currency war and the first prey of it is the European single currency that has been damaged a lot. Continue reading "Year Of Shocks: Which Of The Safe Havens Saved The Most?" →

The U.S. Dollar's 2014-2015 Rally: Wave 3 in Action

Posted on by The INO.com Team

An excerpt from our free 14-page report shows you how the Elliott Wave Principle can "Boost Your Forex Success"

By: Elliott Wave International

I always say trading forex markets is like riding a bike -- except that said bike has one flat tire and the ground beneath it is covered in ice.

So why are they so popular, you might ask? In fact, forex is the most liquid market on earth, where trillions of dollars change millions of hands every day.

The reason people are so willing to ride that bike -- so to speak -- is because if you can stay on, the rewards are often unmatched. The trick, of course, is staying on.

There's no such thing as a fool-proof strategy. Slips and scrapes are bound to happen. But as the title of Elliott Wave International's chief currency strategist Jim Martens' go-to guide reveals, there is definitely a way "The Elliott Wave Principle Can Boost Your Forex Success."

Here below, you can read an exclusive excerpt from Chapter 1: Continue reading "The U.S. Dollar's 2014-2015 Rally: Wave 3 in Action" →

Dollar Correction Not Over

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


It was back on 13 April that I highlighted the breaking point for the dollar, which could lead to a dollar correction after a prolonged rally. What was that breaking point? If inflation gauges showed that the strong dollar weighed on the inflation outlook, then the dollar would begin its correction. And so indeed, shortly after, the dollar began to plunge against its European peer, the euro, as investors switched into euro longs and dollar shorts. The reason? Data suggested that the US economy wasn't growing as quickly as expected, and most inflation gauges suggested that inflation still wasn't returning.

And then, two weeks ago, the tide turned once again and investors began dollar buying once more as core inflation nudged up and the Eurozone, with the looming Greek crisis, seemed weak again. But is the dollar correction really over? Don't count on it… Continue reading "Dollar Correction Not Over" →

GBP/USD Pair Rises from Eight-Month Trough Following Release of UK Data

Posted on by The INO.com Team

By: Susan Wade

In March the pound rose against the US dollar, pulling the currency combination from eight-month lows.

The pound increased following the release of information that showed that the UK's trade deficit had narrowed more than expected over the course of January.

The effect of the trend was intensified by market attitudes towards the dollar, which cooled ahead of the economic reports that American is set to release.

The Pound Rises as the Dollar Falls

The trend that we are seeing within the market is an interesting one, due to the duality of phenomena influencing both the pound and the dollar. Continue reading "GBP/USD Pair Rises from Eight-Month Trough Following Release of UK Data" →