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 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 [...]

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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 »

European Central Bank: Another 50bp Rate Cut Expected
The biggest event risk this week for the Euro is the European Central Bank interest rate decision. Weak economic data and softer inflationary pressures will force the ECB to take interest rates below 3 percent.
A rate cut will not be a surprise since [...]

Posted in Bank of England, Bernanke, Bloomberg, British Pound, ECB, Forex News, Trichet, ecb rate cut, eur/usd, euro, forex blog No Comments »

The European Central Bank President has finally buckled under the weight of bank failures, recessions and slower global growth. Although the ECB left interest rates unchanged at 4.25 percent this morning, Trichet has paved the way for an interest rate cut before the end of the year. This has driven the Euro to [...]

Posted in Euro Intervention, Forex News, Forex Podcast, Oil, Trichet, ecb rate cut, euro, euro oil, forex blog No Comments »