Investing

12 month forecast for the Canadian Dollar

Is the Canadian Dollar overvalued?  David Allard, writing at castanet.net has this to say about the valuation of the Canadian Dollar … “From a technical perspective, the Canadian dollar has a lot of strength and momentum supporting it. In the last year, it has risen from 85 cents to a high on Friday morning [...]

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Investing

ETFs and the 2010 Big Mac Index

Seeking Alpha has once again published investment advice based on the 2010 Big Mac Index and ETFs that track the currencies in the Big Mac Index.  In short, the Big Mac Index indicates that some currencies are undervalued and some are overvalued.  If you invest long in the undervalued currencies and short in the overvalued [...]

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Investing

Chinese RNB likely to appreciate against the dollar

Rob Annabat from SeekingAlpha predicts a rise in the value of the Chinese Renminbi against the dollar.  Why?  His reasoning is that China is slowly allowing its currency to appreciate against the dollar from8.15 RMB to the dollar in July 2006 to 6.83 to the dollar in July 2008.  Incidentally, China claim that they have [...]

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Investing

Big Mac Index Investing Timeframe

For those of you interested in using the Big Mac Index for profit by either buying ETFs that track undervalued currencies or trading in foreign exchange directly, don’t forget about the differences between the short and long run. While PPP will eventually work, it may take years for undervalued currencies to gain value and [...]

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Investing

The Big Mac Index in ETFs

The following article is from Seeking Alpha.  In short, they are tracking ETFs that mirror currencies represented in the Big Mac Index.  The theory is that if you buy currencies that are undervalued according to the Big Mac Index, and short currencies that are overvalued, you will make money when the value of the currencies [...]

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RECENT VIDEOS

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FOREX Trading

Mega Droid

Posted on 03 May 2010

If you can see this, your browser doesn’t understand IFRAME. However, we’ll still link you to the file. Continue Reading

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Videos

Big Mac Index Update Video

Posted on 19 April 2010

An update on how a digestible burger index reveals how currencies across the globe is faring, with Stephen Gallo, Schneider Foreign Exchange head of market analysis. Continue Reading

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Big Mac Index Basics

Basket of Goods

Posted on 07 April 2010

A relatively fixed set of consumer products and services valued and used on an annual basis to track inflation in a specific market or country. The goods in the basket are often adjusted periodically to account for changes in consumer habits  The basket of goods is used primarily to calculate the Consumer Price Index (CPI). Continue Reading

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Big Mac Index Basics

Purchasing Power Parity

Posted on 07 April 2010

Purchasing power parity (PPP) is a theory of long-term equilibrium exchange rates based on relative price levels of two countries. The idea originated with the School of Salamanca in the 16th century [1] and was developed in its modern form by Gustav Cassel in 1918.[2] The concept is founded on the law of one price; [...] Continue Reading

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Currency Reports

Argentinian Peso

Posted on 07 April 2010

Argentinian Peso and the Big Mac Index Argentinian Peso ETFs Current Value of the Argentinian Peso Continue Reading

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Currency Reports

Brazilian Real

Posted on 07 April 2010

Big Mac Index and the Brazilian Real Current Value of the Brazilian Real Brazilian Real ETFs Continue Reading

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