US equities turned as traders realize that everyone is pinning too much hope on China. The reality is that China’s stimulus plan will not save the global financial and economic crisis. Instead, the only thing that is assured is that at one fifth of 2007 GDP, China will have less money to spend [...]

Posted in Bank of Canada, Bank of England, British Pound, Canadian Dollar, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, dollar earnings, dollar intervention, eur/usd, forex blog No Comments »

The rejection of the $700B bailout plan by the House of Representatives came completely out of the left field, driving a knife through both US equities and the US dollar. For the Bush Administration, it certainly feels like they are moving one step forward and taking two steps back but the severity of [...]

Posted in Bernanke, Bloomberg, British Pound, Crude Oil Prices, Currency forecasts, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, Forex Podcast, US Dollar, VIX, bank safe, consumer confidence, euro, forex blog, us earnings, usd/jpy No Comments »

For the second day in a row, Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Paulson pleaded to the power players of Washington to pass their request for $700 Billion to implement their Troubled Asset Relief Program (TARP). However if we move the letters around a bit, TARP becomes TRAP and that is [...]

Posted in Bernanke, Carry Trades, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Forex Podcast, dollar rally, eur/usd, fannie mae freddie mac, forex blog, paulson dollar 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 »

It’s a super busy day, so I haven’t gotten a chance to really blog about the markets. However so far oil prices are down $6 a barrel - for $13 over the past 2 trading days.
I wrote this post on How Far Could Oil Prices Fall? last week, which is quite applicable to [...]

Posted in Crude Oil Prices No Comments »