Since Standard & Poor’s cut the ratings of 9 Eurozone countries, the euro has done nothing but rally. One of the main reasons why the EUR/USD has been so resilient is because the downgrades had very little impact on European bond yields. French and Spanish bond yields have increased but by less than [...]

Posted in 2011 euro forecast, eu bank stress tests, euro sovereign debt crisis No Comments »

Talking euro on CNBC Asia last night

Posted in 2011 euro forecast, eur/usd No Comments »

The Federal Reserve, European Central Bank and the Reserve Bank of Australia have monetary policy meetings scheduled this week and some investors expect these central banks to change monetary policy. Here’s what the market is pricing in according to interest rate futures. You can compare them with the Central Bank expectations back in September. [...]

Posted in 2011 british pound forecast, 2011 cad forecast, 2011 dollar forecast, 2011 euro forecast, Bank of England, ECB, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Reserve Bank of Australia, aud/usd, ecb rate cut, ecb rate hike No Comments »

Even though ECB President Trichet was quite clear last week in signaling that rate hikes are not over, based upon interest rate futures, investors are actually pricing in NO RATE HIKES for the rest of the year and into the first half of 2012.
Since the beginning of the year, the ECB insisted that [...]

Posted in 2011 british pound forecast, 2011 cad forecast, 2011 dollar forecast, 2011 euro forecast, Australian Dollar, Reserve Bank of Australia 2 Comments »

The latest economic developments have caused investors to push out their rate expectations for all of the major central banks. In May, the ECB, BoC and RBA were all expected to raise rates before the end of the year and now aside from the ECB no one is expected to tighten. Rate expectations [...]

Posted in 2011 british pound forecast, 2011 cad forecast, 2011 dollar forecast, 2011 euro forecast, Australian Dollar, ECB, aud/usd, australian dollar forecast No Comments »