With the global economic downturn in full swing, one of the burning questions on everyone’s minds is who will be the first central bank to take interest rates to zero and how close will everyone else get?
We are in a global easing cycle and the varying aggressiveness of central banks around the world means [...]

Posted in Australian Dollar, Bank of Canada, Bank of England, Bank of Japan, Bernanke, BoE rate cut, British Pound, Canadian Dollar, ECB, Fed Rate Cut, Federal Reserve, Forex, Forex News, Japanese Yen, Reserve Bank of Australia, Swiss Franc, USD/CAD, ecb rate cut, forex blog, reserve bank of australia intervention, reserve bank of new zealand, swiss national bank No Comments »

The British pound is on a tear even though the minutes from the most recent monetary policy meeting indicates that the BoE toyed with the idea of cutting interest rates by more than 150bp.
The markets are ecstatic about the Bank of England’s proactiveness even if it means that UK interest rates will probably [...]

Posted in Bank of England, BoE rate cut, British Pound, Forex News, Mervyn King, forex blog No Comments »

The global unwind continues this morning with US equities, commodities and currencies taking another beating. The US dollar and Japanese Yen continue to outperform with the British pound hitting a fresh 5 year low.
The story is still the same, which is sell first and ask questions later. It is earnings season and [...]

Posted in Bank of Canada, Bank of England, Bank of Japan, BoE rate cut, British Pound, Canadian Dollar, Carry Trades, ECB, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, ecb rate cut, eur/usd, forex blog, retail sales 3 Comments »

It is the morning for rate cuts with the European Central Bank, Bank of England and the Swiss National Bank all cutting interest rates. On a day when the Bank of England shocked the markets with a 150bp rate cut, the ECB and the SNB’s half point cut seemed very small in comparison.
Every major [...]

Posted in Bank of England, BoE rate cut, British Pound, ECB, Forex Technicals, Trichet, ecb rate cut, euro, forex blog No Comments »

It is almost as if there is a new man in town at the BoE. Yesterday, I argued that the BoE could cut by 100bp and they even blew away that outside expectation.
Earlier this year, Mervyn King was still being criticized for being behind the curve. A month ago, he [...]

Posted in Bank of England, BoE rate cut, British Pound, Swiss Franc, forex blog No Comments »