It sounds like the beginning to a bad joke, right? But seriously, why is the Canadian Dollar (aka Loonie) beating the Australian Dollar (AUD) when the two currencies are placed head-to-head? The currency markets tend to be very Dollar-Centric, in that they tend to view most currencies relative to the US Dollar (and to a [...]
Since most emerging market economies and financial markets are fairly small, their currencies are subject to the whims of international investors, moreso than is the case with major currencies. For that reason, when I research emerging market currencies as a whole, I often like to focus on what investors are saying are saying about their [...]
Currency trading on the FX market Even though U.S. markets are closed for the day, there are still things happening in forex trading. Indeed, the FX market is a global market, so there is plenty going on — albeit in a subdued manner. This morning, risk currencies seem to be doing well. The news that [...]
In October, I wrote about a “separation” that had taken place in currency markets between the “sick” currencies and the “healthy” currencies. At the time, I argued that the former category was comprised mainly of the Dollar and the Pound, with most other currencies healthy by comparison. While I still stand by this paradigm, I [...]
As a result of the credit crisis (as well as the global economic boom that preceded it), a handful of lesser-known currencies suddenly achieved prominence.