Foreign Exchange Market Overview for November

Month of November opened with high expectations on tighter monetary policy, as inflation concerns continued to mount. Major economies would register inflation not seen in decades, and central banks were under pressure to act. However, the recently discovered Omicron variant could rein in inflation for them, as it threatens growth across the globe.    Dollar…

Foreign Exchange Market Overview for October

October saw traders anticipating major rate hike announcements. As the developed economies are recovering from the pandemic, central banks were increasingly concerned with accelerating inflation. The dollar dropped as risk appetite rose.    Dollar drops from highest levels in 2021, yield curves show signs of tightening The dollar started the month down from the highest…

Foreign Exchange Market Overview for September

The Chinese tech crackdown, Evergrande crisis, UK gas shortage, and rising energy prices considerably weighed on investors in September. The dollar was up considerably, as investors looked for safe havens.    Dollar rises on expected FED bond tapering, China risks The beginning of September saw oil prices drop after OPEC+ reached an agreement on its…

Foreign Exchange Market Overview for August

As concerns mounted over the spread of the Delta variant in August, investors reduced their appetite for risk considerably. The dollar, however, remained the big winner in August, as it was still considered a safe haven by investors.    US dollar shrugs off weak consumer sentiment The beginning of August was marked by an improvement…

Are Redditors Right About Hedge Funds?

Investor communities on social media sites like Reddit are becoming more and more popular. For most, these communities are a way to trade stock tips and share their gains (and losses) with others. However, Reddit investors are not just interested in making some quick money. Many see themselves as a part of a community that…

Foreign Exchange Market Overview for July

In July, central banks were struggling with balancing inflation expectations with pandemic stimulus. Major economies were recovering despite growing concerns over the spread of the Delta variant.   The Dollar staggers but predicted to rise The dollar closed the first half of the year 2.7% higher. However, the dollar high staggered in July, as the…

Foreign Exchange Market Overview for June

The month of June saw the U.S. Dollar strengthened, despite losing some of its gains in the midst of inflation fears last month. The Eurozone last month has also experienced an improved economic outlook. On the other end, the British Pound index slipped with the raising concerns in the postponement of reopenings.   U.S. Dollar’s…

Examples of Human Error in Hedge Fund History

The term “hedge fund” was coined by sociologist Alfred W. Jones, who set up a fund that would “hedge” against the risks of market-wide crashes on his investments. By combining leverage and short positions, Jones devised a “conservative” financial instrument that was supposed to be neutral to the market. However, hedge funds run by investment…