Entries Categorized as 'ECB'

What is the Fed Waiting For?

Date October 7, 2008

Before the US stock markets opened this morning, the Federal Reserve announced a plan to buy commercial paper directly from issuers in yet another attempt to unfreeze the credit markets. Although this led to a rally in US stocks, USD/JPY and other carry trades, the rally was short-lived. Having been up as much [...]

Panic Selling in Forex Begs Coordinated Easing

Date October 6, 2008

It has been an extremely volatile day in the currency markets with big figures (100 pip) moves in USD/JPY happening in a blink of an eye. The more than 4 percent decline in USD/JPY is the largest single day percentage drop in close to 10 years. The degree of the moves that we [...]

Euro at 1.35, USD/JPY Breaks 103 - What’s Going On?

Date October 6, 2008

The US’ $700B bailout plan will not do the trick - at least that’s how the currency market feels this morning. Deleveraging or the liquidation of risk is happening on a global scale as investors question if guaranteeing funds and bailing out banks are the right prescriptions for the credit crisis. Every single [...]

Non-Farm Payrolls Preview: Impact on Euro

Date October 2, 2008

Will Non-Farm Payrolls Push the Fed to Cut Interest Rates?
September non-farm payrolls are due for release on Friday and now more than ever the level of job losses could determine whether the Federal Reserve will cut interest rates this month and by how much. The US dollar hit a one year high against the [...]

Dollar Rallies on Quarter End Repatriation

Date September 30, 2008

It is the end of the third quarter and demand for US dollars has been exceptionally strong. This is related to repatriation flows and profit taking following yesterday’s big moves. The stock market closed up 488 points, which is approximately 60 percent of Monday’s historic sell-off. On the bailout front, since Congress [...]