Entries Categorized as 'dollar intervention'

Bailout Plan Fails to Impress, Traders Worried More About Dominoes Effect

Date September 29, 2008

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. [...]

Crude Crushes the Dollar

Date August 21, 2008

Here is a quick note on this morning’s price action that I published on GFT’s Research page
Oil prices are above $120 a barrel on geopolitical tensions and fears that Tropical Storm Fay will make landfall for the third time, which is an extremely rare occurrence.
The correlation between crude prices and the US Dollar [...]

What are Risk Reversals Saying about EUR/USD?

Date July 16, 2008

Risk reverals in the EUR/USD have hit an extreme level. The 25 delta 3 month risk reversals are at the highest level since June 2007. Whenever risk reversals hits critical levels, it indicates that everyone who wants to be long euros are already long and as a result, sentiment has hit an extreme. [...]

US Consumer Prices, EU Referendum and G8 Meeting Weighs on Euro

Date June 13, 2008

Since the beginning of this week, the Euro has fallen more than 500 pips against the US dollar, its biggest weekly gain in 3 years. The prospect of a rate hike by the Federal Reserve in August and/or September as well as key event risks over the next 48 hours has currency traders rushing [...]

3 Important People Want the Dollar to Rise

Date June 10, 2008

The Clear Message from the Bush Administration
Last Tuesday, Federal Reserve Chairman Ben Bernanke breaks from tradition and talked about currencies. He drew links between the weaker dollar and higher import costs and consumer price inflation. His cohorts including Fed President Geithner confirmed that the central bank is paying “very close attention” to [...]