The New Year has begun and it is important to see what the market is pricing in for central banks this year. As you may know, central bank rate hike expectations change often but as of last week, most central banks are expected to keep monetary policy unchanged in the coming year but one [...]

Posted in Australian Dollar, Bank of Canada, Bank of England, BoE rate cut, ECB, Federal Reserve, Reserve Bank of Australia, forex blog, reserve bank of new zealand 1 Comment »

I was on CNBC Squawk Box Australia last night talking about the Australian dollar, China and Japanese Yen with Karen Cho

Posted in Australian Dollar, Japanese Yen, aud/usd, australian dollar forecast, japanese retail positioning 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 »

Last night, the Reserve Bank of Australia left interest rates unchanged at 4.75 percent. Many investors were looking for hawkish comments from the central bank but as suspected, the RBA failed to deliver. Given the recent deterioration in economic data (that we showed in our Australian Data Table), I was a bit surprised by [...]

Posted in Australian Dollar, Reserve Bank of Australia, aud/usd, australian dollar forecast 6 Comments »