Market Overview

Currencies EUR/USD: The pair fell sharply after nearly touching the 1.40 level on a 4 hour time frame. The next support is at 1.3781 and the next resistance is at 1.40. USD/JPY: The pair has formed...

This Great Graphic, created on Bloomberg, shows the Italian premium over Germany on 10-year sovereign borrowing (white line) and the euro (yellow line). ECB President Draghi held out the possibility...

I ended yesterday’s comments with the summary: “Most likely another slow to steady day today… and most likely in that order…” The beginning was correct - the ending was...

Dean Baker, in a recent post at the Center For Economic And Policy Research, tries desperately to dismantle an argument over stock valuations and the potential of an asset price bubble. The basis of...

The six most important asset bubbles in modern times (in my opinion) are shown in Exhibit 1 and, as you can see, each of them qualifies on the 2-sigma definition, although the 1965-72 peak, known in...

The signs of inflation continue to appear in the economy.The Fed is ignoring this because the Fed is afraid of deflation… despite food prices, energy prices, healthcare costs, home prices and...

The ECB shrugged off calls from the OECD and the IMF to ease policy. Nor did the ECB make technical moves, like reducing the rate corridor by cutting the 75 bp lending rate. By arguing that inflation...

The upper left chart reflects valuations over the past 114-years, created by Doug Short. This chart combines four different ways to look at valuations and then averages them together. At this time the...

EUR/USD Today’s support: - 1.3903, 1.3876 and 1.3850(main), where correction is possible. Break would give 1.3809, where correction also may be. Then follows 1.3788. Break of the latter would...

Currencies EUR/USD: The pair is in a process of forming a double top on a 60 minute frame. The next support is at 1.3781 and the next resistance is at 1.40. USD/JPY: The pair has formed an ascending...

US futures and European markets are trading higher this morning by tracking the gains from the Asian markets. Investors are in a bullish mood on the back of the positive data which was released in...

The US economic trend has decelerated to the slowest pace of growth since last September, according to a markets-based profile of macro conditions. The Macro-Markets Risk Index (MMRI) closed at 7.8%...

Thursday is a busy day for economic releases, including statements from the Bank of England and the European Central Bank. The markets will also pay close attention to today’s jobless claims...

As can be seen on Dow Jones Industrial chart below, an ascending triangle pattern was rejected at the upper trend line with a subsequent sell-off yesterday. Statistically, a break out of an ascending...