Countries In Currency War Used Up All Policy Tools

Posted by: : Paul EbelingPosted on: January 31, 2015 Countries In Currency War Used Up All Policy Tools

Countries In Currency War Used Up All Policy Tools

Singapore’s Monetary Authority, which deploys its Dollar as the principal policy lever, said Wednesday that it will seek slower appreciation of the currency, sending it to a 4-year low Vs the USD.

Singapore joins countries around the world that are using monetary policy to devalue their currencies. The hope is that the currency devaluations will boost exports, sparking the sluggish economies in these nations.

The countries engaging in a currency war have exhausted all the policy tools they have,” said the head of currency research at Bank of America (NYSE:BAC).

Many experts expect the USD, which hit an 11-yr high Vs EUR last Monday and a 7 yr high against the Japanese Yen last month, to keep rising.

EUR is trading around 1.1333, and it could drop to 1. Parity is in the future for the single currency

It is in everybody’s best interest to see Euro cheaper, so they can improve their exports, it is positive for the entire world.

EUR touched a record low of 0.8252 in October 2000. It has not traded below 1 since December 2002. The Euro began trading in January 1999.

Since about Y 2003, we have been seeing a big distributional top  for the Euro, it broke through Key support at about 1.20. The next support comes in around 1.05 to 1.10.


Majors, Americas, Europe, Middle East & Africa, Asia-Pacific

Stay tuned…


Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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