Posted by: Forex Long Term Forecasts (ActionForex.com)
In the past month, financial markets have been hit with a bad case of the jitters on worries that the global economy will not be able to withstand the implementation of fiscal austerity measures in Europe and slowing growth in some emerging economies. Central bankers too have assumed a [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
The wave of disappointing economic reports this past month combined with the inability of the Administration to push additional stimulus through an election-wary Congress has reawakened fears about a double-dip. We continue to believe such fears are overblown. We remain concerned that so much stimulus is ending in such [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
After the major market shakeout through May over European debt fears, we have begun to see a slightly better attitude when it comes to risk. Granted, financial markets have priced in a decent chance of a double-dip recession for advanced economies later this year. The economic data, on the [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
The huge rescue package announced on 9 May only gave a brief boost to the euro and EUR/USD fell in the beginning of June for the first time in four years below 1.20. However, we doubt the trouble is over for the euro and now see EUR/USD testing 1.15 [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
Our base case scenario again assumes a risk-bearish trajectory for the medium to longer term. The short-term environment this time around has been extremely volatile, as often happens in risk averse markets, so we are least comfortable with the 1-month view, since the market can lurch around widely in [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
Financial markets continued to gyrate wildly in the past month. That said, the package of support measures from European governments has helped to calm fears of imminent default in the so-called peripheral countries in the euro zone, like Greece, Ireland, Portugal and Spain. Nevertheless, a brief look at credit [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
The recent bout of risk aversion has seen USDCAD challenge the structural resistance around 1.0750-1.08 on a two occasions recently, first as a complacent market was caught way too short when the Flash Crash struck in early May, and then with the follow up bout of risk aversion that [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
Our forecast continues to incorporate a significant slowdown during the second half of the year. After likely expanding at a 3.4 percent pace during the current quarter, real GDP is expected to slow to a mere 2 percent pace during the second half of 2010. Conditions over the past [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
Last month, our carry trade observations were taking place just as risk was trying to bounce back from what many have now dubbed the “Flash Crash” because the crash in risk leading into and culminating on May 6 was so ephemeral and because the real “crash” part of the [...]

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Posted by: Forex Long Term Forecasts (ActionForex.com)
The extended homebuyer tax credit fooled the US housing market into another high, pushing a new home sales rally of 42% in 2010, while sales of existing homes have increased 6%. The latter reacted more forcefully to the first homebuyer tax credit than has so far been the case [...]

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