The big story in the currency market today is the Euro which hit a 2 month low against the US dollar. Ratings agency Moody’s warned that the exposure of Western European banks to Eastern European loans could affect their credit ratings. Up until the global credit crisis, Eastern European nations were growing [...]

Posted in 2009 eurusd forecasts, ECB, Trichet, eastern european banks euro, ecb rate cut, eur/usd, forex blog 2 Comments »

Here is a snippet of my comments about this morning’s price action on FX360.com:
There has been a lot of action in the currency market this morning, mostly centered on the British pound and Euro.
ECB President Trichet is not buckling under pressure. After leaving interest rates unchanged at 2.00 percent, [...]

Posted in 2009 eurusd forecasts, ECB, Trichet, ecb rate cut, eur/gbp, eur/usd, forex blog 2 Comments »

With the US markets closed for Martin Luther King’s Day, the odds were skewed towards a quiet trading. However, big news in Europe has made it anything BUT quiet.
After hitting an intraday high above 1.33, the EUR/USD has sold off aggressively on news that Standard and Poors downgraded the sovereign [...]

Posted in 2009 eurusd forecasts, 2009 gbpusd forecast, Bank of England, British Pound, ECB, ecb rate cut, eur/gbp, eur/usd, forex blog, spain downgraded 2 Comments »

After having cut interest rates by 50bp this morning to 2 percent, ECB President Trichet is finally buckling down and signaling that he is ready to cut interest rates again BUT NOT UNTIL March. Despite the weakness in the economy and softer inflation pressures, the hawk in Trichet refuses to die. By saying that [...]

Posted in 2009 eurusd forecasts, ECB, ecb rate cut, eur/usd, euro, forex blog 3 Comments »

Of all the major central banks in the world, the ECB has been one of the least aggressive. Since the beginning of 2008, they have cut interest rates by only 150bp, an insignificant amount when compared to the actions taken by the BoE and the Fed.
The ECB has been close [...]

Posted in ECB, ecb rate cut, eur/usd, forex blog No Comments »