Daily FNArena News - FYI

According to Westpac forex markets have adjusted for current economic conditions but some currencies have moved too far or not enough, creating some opportunities.

Weekly Musings by your editor. Here’s one thing I have learned: long after the trend has reversed investors are still looking at the past for future guidance.

An awful October is behind us and the new month brings us another new Australian rate decision from the RBA, while America picks its new President.

Hands Up. What is now the most highly capitalised company in the world?

The Reserve Bank of Australia has been a rumoured buyer of Aussie dollars this week and the Japanese are also expected to intervene.

Given the state of European bank balance sheets and the poor technical picture, CIBC World Markets expects the euro to fall further.

De-leveraging and lower oil prices should be good for the USD and in the shorter-term the yen, but not the Aussie, says Danske.

Fed meeting aside, bank reports and AGM forecasts will keep local traders busy and we’ll finally get the recession verdict from the US with the release of GDP data Thursday.

While much of the recent US dollar buying has been related to investors chasing safe havens other factors may see the run continue.

The Dow closed up 172 points in a late buying rush after in yet another volatile session.