Stocks and Dollars

A $3 trillion deal that U.S. lawmakers could reach to raise the U.S. borrowing limit and avoid default could spur a relief rally in Wall Street stocks and a rise in U.S. government yields on Monday.

By Patrick Chovanec:

With the political clash over the U.S. debt ceiling in full swing this week, I’ve been inundated with people asking variants of the same question: with the U.S. in (temporary) danger of defaulting, will China, which holds at least $1.2 trillion worth of U.S. Treasuries, finally get fed up and dump its share of the U.S. national debt? It certainly sounded that way, with the <a href="http://www.reuters.com/article/2011/07/30

Complete Story »

We had a lot of noises in the markets recently. The US debt ceiling debate remained a major focus as the drama dragged on before the August 2 deadline. Moody’s warned earlier in the month of a possible US downgrade. But the rating agency said in a statement on Friday

EUR/USD faced strong resistance ahead of 1.4577 and retreated last week. While such retreat to 1.4229 was bit deeper than expected, the late rebound and break of 1.4400 suggested it’s merely a correction and has completed. Initial bias is neutral this week with focus back on 1.4577 resistance. Decisive break

USD/JPY’s fall accelerated to as low as 76.71 last week and remained weak. Initial bias remains on the downside for 100% projection of 85.51 to 79.56 from 82.22 at 76.27 and then 75.98 low. On the the upside, above 77.56 minor resistance will turn bias neutral and bring consolidations first.

AUD/USD took out 1.1011 to resume long term up trend last week and made new record high at 1.1079 before making a temporary top there and retreated. Initial bias is neutral this week and some more consolidations would be seen. But even in case of another fall, downside is expected

AUD/USD took out 1.1011 to resume long term up trend last week and made new record high at 1.1079 before making a temporary top there and retreated. Initial bias is neutral this week and some more consolidations would be seen. But even in case of another fall, downside is expected

USD/CAD edged lower to 0.9406 but formed a short term bottom there and rebounded. Initial bias is mildly on the upside for stronger rise towards near term falling trend line (now at 0.9614) and possibly above. But after all, break of 0.9778 is needed to signal reversal in recent down