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Yuan going global: China, Singapore agree on direct currency trade

Yuan going global: China, Singapore agree on direct currency trade | Starbucks Investing Blog | Scoop.it
China and Singapore have agreed to trade their currencies directly, making the Southeast Asian city - state another offshore hub for Chinese yuan.
Eugine Ham's insight:

This article leads me to believe that it may be a good idea to short the yuan against othercurrencies. This is because as the yuan is traded for other currencies, it will depreciate in value. Therefore, shorting the yuan versus other Asian currencies may be a wise decision.

-Ian Cumberland

 

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US dollar may soon be replaced as world currency - Inquirer.net

US dollar may soon be replaced as world currency - Inquirer.net | Starbucks Investing Blog | Scoop.it
US dollar may soon be replaced as world currency Inquirer.net Playing a game of brinkmanship, the United States government may just end up hurting itself as other countries start to plot out long-term strategies to find replacements to the...
Eugine Ham's insight:

With the sequesters and declining faith in the US dollar and government, other countries are losing faith in the dollar. This recent fiscal cliff and threat of a credit default has further declined the faith in the dollar. Furthermore, the US dollar took a hit when one credit rating agency decreased the rating of the USA and there is thee threat of another possible downgrade in credit rating from a different agency. If the US dollar is repllaced as the world currency it will decline heavily in price in foreign markets. Also if it is replaced, there is a good chance of anothre huge meltdown in the US economy.

 

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Forex - EUR/USD gains as soft US jobs report sparks dollar selloff - Investing.com

Forex - EUR/USD gains as soft US jobs report sparks dollar selloff - Investing.com | Starbucks Investing Blog | Scoop.it
DailyForex.com
Forex - EUR/USD gains as soft US jobs report sparks dollar selloff
Investing.com
Investing.com - The dollar slumped against the euro on Friday after the U.S.
Eugine Ham's insight:

This news goes contrary to our earlier predictions that the Euro would fall compared to the dollar, which we based a 10000 dollar trade on. We had expected that the upcoming jobs report would be favorable, but instead it showed weak or no growth, spurring other investors to sell the USD, letting it fall in value. Additionally, the issue of Syria in Washington has decreased confidence in the dollar

 

Patrick Grady

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Dollar Climbing Higher - Barron's

Dollar Climbing Higher - Barron's | Starbucks Investing Blog | Scoop.it
Dollar Climbing Higher
Barron's
The dollar is on a tear. After holding a technical support floor last month, the greenback has moved 1.8% higher in just over two weeks. Whether it is rising on a flight to safety over the pending U.S.
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Act now to get ready for the next round of bond pain: Why Ever Do Bonds, Do P2P

Act now to get ready for the next round of bond pain: Why Ever Do Bonds, Do P2P | Starbucks Investing Blog | Scoop.it
After recent losses, it's time to get serious about tweaking your portfolio. It's possible to dial down interest-rate risk while continuing to enjoy the diversification benefits that bonds provide. (Investors beware.

Via P2P Consultants
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P2P Consultants's curator insight, August 12, 2013 6:56 PM

This is example of how the safe stuff like bonds lose money.

 

By comparions, p2p is a safehaven

 

"In June, stunned by losses in what many had thought was a safe asset class, investors yanked a monthly record of more than $81 billion from fixed-income mutual funds and ETFs, according to TrimTabs Investment Research"

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UK economic growth hits fastest pace since 2010 - Telegraph

UK economic growth hits fastest pace since 2010 - Telegraph | Starbucks Investing Blog | Scoop.it
Official figures this week are expected to confirm that the recovery gathered speed over the summer as the economy grew at its fastest pace in more than three years.

Via Graham Watson
Eugine Ham's insight:

This article claims that the British economy is growing as a result of the economic recovery and aggressive monetary policy. GDP has grown 0.8% in the past three months, beating invtestors' expectations. Additionally, consumer confidence has risen to its highest point in the last two years.

 

However, even though the economy is doing well, individuals are suffering. Real household income has dropped significantly, and purchasing power has fallen 5% compared to three years ago.

 

In my opinion, these show that the UK economy is suffering, but this is hidden by the economic recovery. The current trends are unsistainable, and consumer power will have to rise eventually. However, in the short term, these indicators are all positive. Therefore it seems reasonable to invest in the GBP in the hopes that it will rise vs the stuttering US economy

 

Patrick Grady

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Graham Watson's curator insight, October 21, 2013 3:21 AM

The Telegraph trumpets the economic recovery - with households becoming more confident, Deloitte's report. Their Chief Economist, Ian Stewart, whose Monday Briefing has already landed in my inbox this morning comments:

“Overall confidence is growing   and has been for the past year. Less downward pressure on incomes, combined   with renewed economic optimism and an improving housing market make for a story of gradually recovering confidence – notwithstanding the fact that the level of real incomes is continuing to fall.” 

Despite the squeeze on real incomes, rising property prices have underpinned increased spending. I'm just worried that all of this sounds eerily familiar. 

 

 

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Market Rebound in China Shows Beijing's Resolve - New York Times

Market Rebound in China Shows Beijing's Resolve - New York Times | Starbucks Investing Blog | Scoop.it
New York Times
Market Rebound in China Shows Beijing's Resolve
New York Times
An electronic stock trading board outside a brokerage house in China.
Eugine Ham's insight:

This news reinforces our decision to invest in china because the Chinese markets are on the rise, their stocks athe increasing and that shows that they have a strong economy, making any investment in them safe for the time being.

-Ian Cumberland

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European Central Bank Leaves Interest Rate Unchanged

European Central Bank Leaves Interest Rate Unchanged | Starbucks Investing Blog | Scoop.it
The central bank left its main rate at 0.75 percent, where it has been since July. But there is concern about the rising value of the euro currency.

Via Marco Fattorini - @dal1472al
Eugine Ham's insight:

It is very interesting to see that the European Central Bank is following in the FED's footsteps and are planning to inject more Euros into their economy. This will help us is short-selling the Euro to buy more later in the future. With the ECB planning to decrease the value of the Euro makes this a clear decision to NOT have a long-term investment into the Euro. I believe that we should plan on investing in other currencies, and short-sell the Euro
- Ian Clymer 

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India's Rupee opens at a new low of 63.75 vs US dollar - @IBNLiveRealtime

India's Rupee opens at a new low of 63.75 vs US dollar - @IBNLiveRealtime | Starbucks Investing Blog | Scoop.it
India's Rupee opens at a new low of 63.75 vs US dollar - @IBNLiveRealtime

Via #BBBundyBlog #NOMORELIES Tom Woods #Activist Award #Scoopiteer >20,000 Sources >250K Connections http://goo.gl/ruHO3Q
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