Forex-eurousd

Still heading towards 61.8 fib.

'Real Panic Going on' in Dollar Index: Charts

The dollar index looks set to continue its rapid decline and could fall below 72 point before the end of October, a level not seen since mid-2008, independent trader and technical analyst Bill McLaren told CNBC Friday.

"This is a real panic going on," McLaren said. "My gosh, the way this thing is running down here we could see the 71s without a problem."

McLaren expects the index to hit a low on October 29, but said there is a small chance the move could become exhausted on the 20th.

McLaren added that he had expected the index to reach a bottom on October 20, but the speed of its decline lead him to change his forecast.

The dollar index [.DXY 77.255 0.215 (+0.28%) ], which weighs the greenback against a basket of other currencies, held above 76 points Friday. It has suffered major declines since mid-summer after the Federal Reserve signaled further quantitative easing in a bid to boost the economy. Read more

Fool Proofing Your Gold Investment

Gold prices have been hitting record highs almost every day in recent weeks. For investors trying to figure out what to do, the situation gets more confusing when expert opinions on the outook for the yellow metal are as diverse as they are contradictory: Goldman Sachs says prices will hit $1650/oz within 12 months, but French bank Natixis says prices will actually decline in 2011 as the global economy recovers.

Tom Grill | Iconica | Getty Images

While Uwe Parpart, Chief Economist and Strategist for Asia at Cantor Fitzgerald, says all investors should own some gold in their portfolio, it’s easier said than done, as predicting the price of gold is just as tough as timing the stock market.

There are many ways to buy gold. You could buy an exchange-traded fund (ETF) such as the SPDRs GLD, mining stocks, futures contracts on the precious metals or the physical bullion itself. Each of these has its pros and cons.

Buying gold and storing it in a vault costs money and isn’t always practical for retail investors. Instead, John Stephenson, who’s written The Little Book of Commodity Investing, recommends investors buy shares in mining companies. Read more

Forex-eurousd still moving up

Eurousd still marching up, as stated earlier expect it to challenge fib 61.8 around 1.4420-55

Forex-eurousd moved higher

As predicted Euro moved higher and expected to challenge fib 61.8

Debt Crisis Will Hit Japan Next, Then US: Historian

Europe's sovereign debt crisis isn't over and will continue to spread, first to Japan and then to the U.S., warned renowned Harvard University professor, Niall Ferguson.

"There are more of those (sovereign debt crises) to come and, ultimately, it is going to come to Japan and the United States. And those crises of sovereign debt will be the big story," he told CNBC Wednesday.

The explosion of public debt will inevitably lead to either inflation or default, Ferguson added.

"It just depends on whether you borrow in your own currency in which case is probably going to be inflation; or someone else's, in which case is probably a default."

The British historian says further quantitative easing from the U.S. Federal Reserve will not help the economy, as the extra liquidity is unlikely to stay within the country. Read more

Forex-eurousd

Expect more upside. But will go for counterplay at Fib 61.8 around 1.442.

Austerity Will Push Euro to $1.50 by Year End: Economist

The euro will keep rising and will likely end the year at up to $1.50, as the European Central Bank pursues a highly deflationary policy, despite buying euro-denominated bonds, economist Warren Mosler, founder and principal of broker/dealer AVM, told CNBC.com.


AP
The ECB's cash is now dictating euro zone members' fiscal policy, Warren Mosler said.

Mosler, who predicted that the euro would bounce back towards $1.60 in June, when the single European currency was trading at around $1.19, said there was nothing to stop the euro's [EUR=X 1.3942 0.0013 (+0.09%) ] appreciation versus the dollar, short of a policy response from the European Central Bank.

"If it (the euro) keeps going at the rate it's going, it could go to $1.45-$1.50 by the end of the year," he said.

The ECB started buying government bonds belonging to distressed euro zone members such as Greece, Ireland, Portugal and Spain to ease market concern regarding these countries' ability to fund themselves and some analysts have said the measure may be inflationary.

But the policy is, if anything, deflationary because it is accompanied by tough austerity conditions, Mosler said. Read more