Posts tagged as:

FXA

The evolution of the exchange-traded product structure has opened up the doors to the foreign exchange market in ways that were previously impossible. Through the use of a single ticker, investors can now seamlessly, and in a cost-efficient manner, establish exposure to the most traded currencies around the globe.

As with any asset class, every currency is bolstered by a unique set of price drivers in addition to being influenced by overarching macroeconomic conditions, which is why investors must understand the inherent risks and nuances before jumping into a position. Our Ultimate Guide To Currency ETF Trading offers a great starting point for those looking to familiarize themselves with the products that offer exposure to this lucrative asset class. [click to continue…]

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It seems the debt-ceiling deadline snuck up on investors, as evidenced by Monday’s bearish start to the trading week. Many were quick to lock-in profits ahead of the potential government shutdown deadline. With major equity indexes oscillating for most of the day, it’s clear that uncertainty has once again permeated Wall Street, and investors’ confidence will be on edge until politicians can offer a resolution, or band-aid, over the coming days [see ETF Insider: New Defensive Position Added To Portfolio].

Our chart to watch for today is the CurrencyShares Australian Dollar Trust (FXA, A-), which may experience volatile trading at the opening bell as investors react to the overnight Reserve Bank of Australia interest rate decision. Analysts are largely expecting for policymakers overseas to hold rates steady at 2.50%, although the economic commentary after the rate decision itself can still inspire wild fluctuations in both the currency and equity markets.  [click to continue…]

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With domestic equity indexes soaring to all-time highs in recent months, many have become infatuated with the stock market and the countless opportunities it offers both at home and abroad. As a result, the commodity and bond markets have come under pressure in light of improving economic growth expectations. One particular asset class, however, remains […]

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Major U.S. equity indexes marched sideways most of last week as complacency over looming GDP data and FOMC policy hints prompted many to hold steady or wait on the sideline altogether. Much to everyone’s surprise, better-than-expected GDP data failed to ignite a rally while dovish comments from the Fed resulted in a muted sell-off. Amid […]

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Over the last three years, Wall Street has witnessed a tremendous shift in the investment environment. Investors are slowly adopting riskier appetites as they continue to recover from the 2008 financial crisis, allowing bullish momentum to become a more dominant force in the markets. But while most asset classes have fared relatively well over the […]

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The bears resurfaced on Wall Street after Japanese policymakers said there was no need to expand monetary stimulus immediately, which in turn scared away many who are fearful the Fed will soon start to scale back on bond-repurchases at home. On the data front, the NFIB small business sentiment index came in at 94.4, jumping […]

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Bullish euphoria following April’s better-than-expected employment report is still driving markets higher with the S&P 500 Index continuing its ascent into previously uncharted territory beyond the 1,600 level. With no major economic data releases taking place yesterday its clear that investor confidence is thriving from stimulus hopes following last week’s European Central Bank rate cut along […]

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As the world becomes more connected every day, investors continue to find new ways to trade around the world and gain exposure to countries they may never even get to visit. Exchange-traded funds offering exposure to Global Currencies have become a popular tool for those looking to make a direct play on a country, using the country’s […]

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Up, Up, And Away

by on March 16, 2013

The Dow Jones Industrial Average continued its unprecedented rally as buyers kept the winning streak going for 10 straight days amid a flurry of encouraging economic data. Investors had few reasons to take profits last week as retail sales, weekly jobless claims and industrial production data all came in better than expected, adding fundamental fuel to the […]

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ETFs have opened up the doors to previously hard-to-reach reach corners of the market, including foreign equities, commodities and alternative asset classes. Currency ETFs in particular have seen growing interest among investors and traders alike as they greatly simplify the challenges that are otherwise associated with entering the forex market [see How To Take Profits […]

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Bears Lurking In Uncharted Territory

by on March 11, 2013

With the Dow Jones Industrial Average climbing to all-time highs last week it’s no surprise to see the divide between the bulls and the bears reach extremes as well. While some investors are calling this the start of the next great bull-run, others are equally convinced that equities are long-overdue for a major correction. As such, the […]

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ETFs continue to open up the doors to international markets that were previously too difficult, or costly, to access for mainstream investors. Those looking for the most direct exposure to a foreign economy often choose to invest in the local currency rather than equity or bond funds, especially when looking for a risky but potentially […]

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