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There are many factors that give credence to the idea that a currency war is truly going on. Not in the traditional sense of war against another country, but a mad rush by some of the major developed countries to weaken their currencies in an effort to stimulate their struggling economies. This is particularly true of the US$, Euro, Pound and Yen. It looks as if they have all read the same playbook (Keynes).

All of the aforementioned currencies have enjoyed seemingly unending money printing by their Central Banks, in an effort to revive their slowing economies since the Global Financial Crisis. The effects of this unbridled money printing has been tepid at best, as evidenced by the weak GDP growth since the GFC.

The UK is struggling with a contraction in GDP in four out of the last five months. In an effort to stave off a third recession in five years, many investors believe the Bank of England will resume its bond buying program. During the height of the eurozone crisis, the Pound was considered a "safe haven" by some. Since the temporary fix in the eurozone , the focus has turned to the UK economy. This flight from the Pound has added to its woes.

The eurozone, on the other hand, appears to have been given a reprieve of sorts with Draghi at the helm, but the recent turmoil encountered from the Italian elections has taken some of the luster off of the recently strengthening Euro.

The recent actions taken by Abe, in Japan have now brought Japan to the printing party. All of this presumed "quick fix" is all but temporary, and any "real" growth is quite suspect due to the Central Banks smoke and mirrors fix. Is there any real growth?

CURRENCY SHARES (ETFs) WEEKLY TECHNICAL LANDSCAPE

FXB Currency Shares British Pound Trust

The FXB Currency ETF closed at 147.48. The market closing below the daily 50 MA (155) is confirmation that the trend momentum is bearish. A weekly close above the 50 MA negates the bearish trend to neutral. With the market closing below the VC Weekly Price Momentum Indicator of 148.24, it confirms that the price momentum is bearish. Look to take some profits, if long, as we reach the 149.07 and 150.65 levels during the week. Buy corrections at the 146.66 to 145.83 levels to cover shorts and go long on a weekly reversal stop. If long, use the 145.83 level as a SCO/GTC (Stop Close Only and Good Till Cancelled order).

FXE Currency Shares Euro Trust

The FXE Currency ETF closed at 128.92. The market closing below the daily 50 MA (1.3173) is confirmation that the trend momentum is bearish. A weekly close above the 50 MA negates the bearish trend to neutral. With the market closing below the VC Weekly Price Momentum Indicator of 1.2918, it confirms that the weekly price momentum is bearish. Look to take some profits, if long, as we reach the 1.2985 and 1.3078 levels during the week. Buy corrections at the 1.2825 to 1.2758 levels to cover shorts and go long on a weekly reversal stop. If long, use the 1.2758 level as a SCO/GTC (Stop Close Only and Good Till Cancelled order).

FXY Currency Shares Japanese Yen Trust

The FXY Currency ETF closed at 102.05. The market closing below the daily 50 MA (107.84) is confirmation that the trend momentum is bearish. A close above the 50 MA negates the bearish trend to neutral. With the market closing below the VC Weekly Price Momentum Indicator of 103.02, it confirms that weekly price momentum is bearish. Look to take some profits, if long, as we reach the 104.31 and 106.56 levels during the week. Buy corrections at the 101 to 99.48 levels to cover shorts and go long on a weekly reversal stop. If long, use the 99.48 level as a SCO/GTC (Stop Close Only and Good Till Cancelled order).

Source: Will The Currency Wars Accelerate?

Additional disclosure: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

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