In the face of today’s 200 point positive and negative swings in the Dow, it could be argued that the US dollar has been relatively stable if you only look at the daily change of the 3 major currency pairs. The EUR/USD rallied 100 pips, the GBP/USD was unchanged while USD/JPY fell 75 pips. [...]

Posted in Bank of Canada, Bank of England, Canadian Dollar, ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, US Dollar, US Economy, euro, forex blog No Comments »

The Bank of Canada cut interest rates by 25bp to 2.25%. This move was smaller than the market expected but still represents 75bp of easing since the beginning of the month.
With the Federal Reserve set to reduce interest rates next week, Canada’s explanation for the smaller could shed some light on what the [...]

Posted in Bank of Canada, Canadian Dollar, Fed Rate Cut, Federal Reserve, Forex News, US Dollar, US Economy, forex blog 2 Comments »

The Congressional agreement of the $700 Billion bailout plan has proved to be anti-climatic for the stock and currency markets. There was a relief rally in the US dollar Sunday evening, but it lasted for no more than a blink of an eye as more problems came knocking on the door for financial institutions. [...]

Posted in Bank of England, Bank of Japan, Bernanke, Bloomberg, British Pound, Canadian Dollar, Carry Trades, Fed Rate Cut Expectations, Federal Reserve, Forex News, Forex Podcast, Intervention, US Dollar, bank holding companies, bank safe, consumer confidence, consumer spending, dollar earnings, dollar intervention, dollar rally, euro, fed liquidity dollar, forex blog No Comments »

With Hurricane Gustav being downgraded to a tropical depression, the Hurricane Premium is off the table. Oil prices have plunged more than $10 a barrel since Friday with $100 a barrel now within striking distance. The rally in the US dollar is a direct result of the fall in oil prices. Since [...]

Posted in Canadian Dollar, Crude Oil Prices, ECB, Forex News, Oil, US Dollar, US Economy, consumer spending, dollar rally, eur/usd, forex blog, gas prices No Comments »

In 2007, the Canadian Dollar was named Time Magazine’s Canadian Newsmaker of the year. Having hit a high of 0.9059 against the US dollar, it smoked its US counterpart. At the time, the Loonie skyrocketed because of a booming economy and skyrocketing oil prices.
However in the second half of 2008, the tides are [...]

Posted in Bank of Canada, Canadian Dollar No Comments »