Signs of stability in the US manufacturing sector has failed to turn around the market’s risk appetite. Although the US dollar has weakened marginally against all of the major currencies, if US stocks continue to sell off, we could see the dollar regain strength.
Will the US government allow GM to fail?
The [...]

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The biggest event risk this week is undoubtedly the Federal Reserve’s monetary policy decision on Wednesday. Now more than ever, the Fed’s decision could turnaround the currency and equity markets. Since the last interest rate cut by the central bank on October 8th, the dollar has rallied more than 8 percent and the [...]

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The most anticipated event risk next week is the Federal Reserve’s interest rate decision. Going into the meeting, the market is now pricing in an 68 percent chance of a 50bp rate cut and an 32 percent chance of a 75bp rate cut.

This indicates that the market believes 25bp will be the minimum [...]

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We have been literally begging the Federal Reserve, the European Central Bank and the Bank of England to work together to stem the bleed in equities and they have finally done it (What is the Fed Waiting For? And Panic Selling in FX Begs Coordinated Easing). For the first time since Sept 2001, central banks [...]

Posted in ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, US Dollar, US Economy, coordinated rate cuts, euro, forex blog 6 Comments »