U.S. equities turned positive, erasing triple digit losses in the second half of the NY trading session. The improvement in risk appetite also extended to currencies as safe haven flows eased out of the U.S. dollar. The British pound, Swiss Franc and commodity currencies benefited from the weakness in the greenback. The [...]

Posted in Bernanke, forex blog 1 Comment »

The job of turning around the global economy lies of the shoulders of just a few people and in this group includes central bank governors. With such a tall task at hand, it leads me to wonder what are the people with such power and responsibility making. Is it enough to compensate for [...]

Posted in Bernanke, ECB, New Zealand dollar, Reserve Bank of Australia, Trichet, forex blog 18 Comments »

The EUR/USD is on a tear, having rallied more than 600 pips or 5 percent over the past 24 hours. The significance of Fed’s actions continue to resonate over the currency markets and even though we have already seen parabolic moves in the pair, I think it will head higher.

Why?

On December 16th, when the [...]

Posted in 2009 eurusd forecasts, Bernanke, eur/gbp, eur/usd, euro break 1.40, forex blog, quantitative easing 4 Comments »

With the Fed’s announcement today, many people may be wondering “How does the Fed print money?” Here is a snippet from my Daily Piece on Currencies.
Most of the time when we say that a central bank “prints money” that does not mean that they actually fire up the electronic version of a printing [...]

Posted in Bernanke, Fed Rate Cut, Fed Rate Cut Expectations, quantitative easing 14 Comments »

The Euro has surged to 1.3157, a six week high against the U.S. dollar. The currency pair’s strength is a big departure from the price action of the other majors currencies this morning, which have weakened across the board. The break of the old highs opens the door for a move above the [...]

Posted in Bernanke, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex, eur/usd, forex blog 7 Comments »