currency posts
FeedPosted Mar 17th 2011 5:45PM by Paul Foster (RSS feed)
Filed under: Red Hat Inc (RHT), Options, Israel, Currency
CurrencyShares Japanese Yen Trust (FXY) closed up 1.2% in pre-open trading. Overall option implied volatility of 15 is above its 26-week average of 11, according to Track Data, suggesting larger price movement.
Red Hat Inc. (RHT) April 44 calls were active on 26K contracts. April and June call 40 call option implied volatility is at 43. This is compared to its 26-week average of 39 according to Track Data, suggesting traders taking positions for larger movement into Q4 results expected to be released on March 23.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Nov 26th 2010 5:00PM by Paul Foster (RSS feed)
Filed under: Options, Currency
Euro Currency Trust (FXE) closed down 0.6% to 131.93 , near its 100-day moving average of 132.47. Overall option implied volatility of 13 is near its 26-week month average according to Track Data, suggesting non-directional price movement.
CurrencyShares Japanese Yen Trust (FXY) closed down 0.62% to $117.68. The FXY reflects the price of Japanese Yen plus accrued interest. FXY over all option implied volatility of 11 is near its 26-week average according to Track Data, suggesting non-directional price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Nov 18th 2010 10:40AM by Connie Madon (RSS feed)
Filed under: Market Matters, Currency
The Financial Times quotes Jonathan Potts saying: "The phones are ringing off the hook." Potts is managing director of Fidel Trade, a U.S. coin dealership authorized to buy coins directly from the U.S. mint.
Potts's statement is indicative of the state of the gold and silver coin market. Mints all over the world are running at full capacity. Among them are:
- David Madge, head of bullion sales at the Royal Canadian Mint said sales of the Silver Maple Leafs had been "extremely strong."
Continue reading Record Demand for Silver Coins
Posted Nov 11th 2010 8:30AM by Jason Raznick (RSS feed)
Filed under: Before the Bell, Cisco Systems (CSCO), China, Walt Disney (DIS), Viacom (VIA), Gap Inc (GPS), Kohl's Corp (KSS), Commodities, Currency

U.S. stock futures are lower this morning after Cisco Systems (
CSCO) issued a weak revenue forecast last night, and China reported 4.4% surge in its consumer-price index in October. Futures on the
Dow Jones Industrial Average lost 14 points at 11,288.00, while S&P 500 futures moved down 2.80 points to 1,211.30. Nasdaq 100 futures dropped 12.75 points to 2,161.75.
However, U.S. markets did gain yesterday, with the Dow Jones industrial average rising 0.1%, the Standard & Poor's 500 Index gaining 0.4% and the Nasdaq Composite Index advancing 0.6%.
Continue reading Futures Lower on Cisco, China Inflation
Posted Oct 20th 2010 2:00PM by Jason Raznick (RSS feed)
Filed under: Currency
Investors will recall the massive rally in the euro which began at the beginning of June when bearish sentiment reached overwhelming levels. Could a similar pattern take place in the U.S. Dollar? If it does, investors who go long the dollar at these levels will be richly rewarded for taking a contrarian stand on the greenback.
The simplest instrument to use in order to gain exposure to a potential dollar rally is likely the PowerShares DB US Dollar Index Bullish ETF (UUP), which tracks the performance of the greenback versus a basket of foreign currencies. The UUP gained 1.70% on Tuesday, potentially signaling a trend reversal. Investors could also consider buying call options on the ETF in order to leverage their upside.
Continue reading Long U.S. Dollar Gains Could Be Substantial If You Buy Now (UUP, GLD, SLV, USO, FCX)
Posted Oct 14th 2010 10:30AM by Connie Madon (RSS feed)
Filed under: Before the Bell, Major Movement, International Markets, Market Matters, Commodities, Oil, Federal Reserve, Currency

The big story today is the U.S. dollar. The December dollar futures are trading at 76.69, down 0.597 (as of 7:30 EDT). That was the trigger and it is off to the races with Asia-Pacific shares hitting their highest level since July 2008, according to the
Financial Times. Stocks also opened higher in Europe with the FTSE All World Index up 0.8% to 210.4.
Now you are wondering, what is happening? The answer is the Federal Reserve. The Fed minutes stated that the central bank was ready for another round of quantitative easing to stimulate the economy. That means more inflation and a scramble to buy risk orientated commodities and securities.
Continue reading Dollar Sharply Lower, Causing a Rush into Commodities and Equities
Posted Oct 13th 2010 11:00AM by Connie Madon (RSS feed)
Filed under: Federal Reserve, Currency
The U.S. dollar has been under siege since June when the U.S. dollar futures index reached a high of 89.11. In today's trading the index traded at 77.34. According to Federal Reserve minutes released Tuesday, it looks like the Fed is behind this -- engineering a weaker dollar to boost commodities and the stock market and give U.S. exporters an edge in world trade, The Wall Street Journal reports.
The very fact that the Fed plans additional purchases of U.S. Treasuries to stimulate the economy is almost a sure bet to further devaluation of the dollar. The Fed prefers inflation because it is deathly afraid of deflation. The Fed sees inflation as the better of the two evils.
Continue reading Is the U.S. Trying to Devalue the Dollar?
Posted Oct 11th 2010 10:40AM by Connie Madon (RSS feed)
Filed under: International Markets, Politics, Currency
A weekend meeting of global finance ministers was sponsored by the International Monetary Fund to deal with the growing currency imbalances in world economies. The two big players -- the U.S. and China -- instead of reaching a consensus, ended farther apart with each side digging in and pushing back against the other.
Zhou Xiaochuan, China's central bank governor told the Financial Times: "The continuation of relatively low interest rates and unconventional monetary policies by major reserve currency issuers have created stark challenges for emerging market countries in the conduct of monetary policy."
Continue reading Currency Tensions Rise as Nothing Happens at IMF Meeting
Posted Oct 1st 2010 10:30AM by Connie Madon (RSS feed)
Filed under: Major Movement, Market Matters, Commodities, Oil, Currency
William Dudley, President of the Federal Reserve Bank of New York said today that further Fed easing is needed if the economy does not improve. That was the trigger for gold and oil, which moved higher. Gold set a new record with the spot price at $1,317.10 in London. The December futures contract is trading at $1,317.10, up $8.20, Reuters reported.
The remark about the possibility of the Fed easing also triggered a sharp drop in the U.S. dollar. December futures are trading at 78.51, down 0.428. In a knee-jerk reaction, November oil spiked to $81.24 per barrel, up $1.27.
Continue reading Gold Sets Another Record High
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