2008 Price Action: It has been an exceptionally active year in the foreign exchange market as currency volatilities hit record highs. In the first half of the year, everyone was worried about how much further the dollar would fall but in the second half of the year the concern became how much further [...]

Posted in Bernanke, FOMC, Federal Reserve, Forex, Forex News, Forex Technicals, consumer confidence, consumer spending, dollar forecast, dollar rally, forex blog 5 Comments »

The Federal Reserve cut interest rates by 75bp to a range of 0 to 0.25 percent, the lowest level that this generation has ever seen.
In our FOMC preview, we talked about how the Fed may consider adopting a BoJ style rate cut that takes interest rates somewhere between 0.25 and 0 percent. [...]

Posted in Bernanke, FOMC, FOMC Minutes, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Interest rates, US Economy, dollar recession, dollar record low, eur/usd, forex blog, usd/jpy 8 Comments »

Tuesday’s FOMC meeting will be remembered for decades to come as the Federal Reserve brings interest rates down to the lowest level this generation has ever seen. With 2 realistic options on the table and economist and traders divided on how much the Fed will cut interest rates, the only certain outcome is significant [...]

Posted in Bernanke, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, US Dollar, forex blog, recession, usd/jpy, weak dollar earnings, zero interest rates 4 Comments »

US retail sales and producer prices were basically in line with expectations but that does not undermine the fact that the data was very weak and confirms that the Federal Reserve will be cutting interest rates by 75bp next week. USD/JPY hit a 13 year low last night after news that the automaker [...]

Posted in Bernanke, Black Friday, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, US Dollar, US Economy, Yen Intervention, consumer spending, dollar rally, dollar record low, eur/gbp, eur/gbp record high, forex blog, retail sales, usd/jpy, usd/jpy intervention, zero interest rates 7 Comments »

The US unemployment rate soared to a 15 year high in the month of November as non-farm payrolls incur the steepest slide in 34 years. Although currencies and equities sold off aggressively following the release of the labor market numbers, they clawed their way back to end the US trading session in positive territory. [...]

Posted in Bernanke, Dow, Forex, Forex News, US Dollar, forex blog, non-farm payrolls No Comments »