Sterling’s time to shine July 27, 2010 STERLING might not have become the darling of the FX markets but it has certainly shed its image as their whipping boy. In what has been described as an ugly contest between the G4 currencies (US dollar, sterling, euro and yen), the pound is looking the rosiest. Last week’s GDP figures, which showed stunning growth [...]
DOLLAR HAS POTENTIAL TO REBOUND July 27, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT The biggest story in the currency market last week was not the Eurozone stress tests, but rather the surprisingly robust economic results reported by Germany and France. While the stress tests proved to be entirely anti-climactic, the news on the economic front was much better than expected. Eurozone flash PMI [...]
The real test for the euro is yet to come July 27, 2010 WITH the European Central Bank’s (ECB) stress tests now out, euro optimists are coming out of the woodwork. Goldman Sachs upgraded its forecast to predict the euro will hit $1.35 against the dollar in early 2011, while ETX Capital similarly forecasts that its current rally could last to the $1.35-36 level. Evolution Securities is likewise [...]
FOREX ANALYST PICKS July 27, 2010 FOREX STRATEGIST JOEL KRUGER My pick: Short New Zealand dollar against the US dollar at $0.7350 Expertise: Classic technical analysis Average time frame of trades: 1 week-6 months Despite the latest surge, the market shows some formidable resistance on rallies above $0.7300 and we continue to like the idea of fading Kiwi support at this [...]
THE TIPSTER July 27, 2010 THE Canadian dollar continues to look strong on the back of a firmer oil price, especially against the yen, which is a net importer of oil. But having traded in a range of ¥86.40-¥82.00 over the last few weeks, the loonie looks to be testing the top of its recent range. Look to sell Canadian [...]
Emerging markets 2.0 July 27, 2010 INVESTORS have developed an addiction to emerging markets in recent years. But what happens when the traditional emerging economies of South East Asia start to mature? Where are the next fertile regions for growth? The frontier markets of the Middle East and North Africa, collectively known as the Mena region, are a good bet. Frontier [...]
Dividend funds an alternative to fixed income July 27, 2010 WORRIED investors have once again been gravitating towards fixed income funds to shield themselves from the gloomy US outlook and concerns about financial stability in the Eurozone. But flow data from EPFR Global also suggested that “enough money found its way into emerging markets equity funds to suggest that yield remains a real concern”. Yield-seeking [...]
DEFEND YOUR PORTFOLIO IN TOUGH TIMES July 27, 2010 MANAGING DIRECTOR, ARTEMIS SO NOW we know. The economic environment is “unusually uncertain”, apparently. Ben Bernanke, chairman of the US Federal Reserve, has confirmed what everyone knew already. Reform – in particular the discharge of debt – has to take place in the midst of the western world’s inevitable and longstanding entanglements, obligations and historical [...]
FUND MANAGEMENT NEWS July 27, 2010 HEDGE FUND REVIEW IS LESS THAN ROSY The Dow Jones Credit Suisse Hedge Fund Index released its first half 2010 industry review yesterday and it was fairly sober reading. The good news was that, so far in 2010, hedge funds have outperformed many global stock indices. However, the returns were far from lacklustre at 0.6 [...]
The ex-Goldman man bringing his banking skills to the Olympics July 26, 2010 AS far as many people are concerned, ex-Goldman Sachs banker Paul Deighton has quite possibly the best job in the world. Today he’s precisely two years away from organising the most prestigious sporting event in the history of mankind, the Olympic Games. And so far it’s going swimmingly well, he says. And he’s still in [...]
