The EUR/USD is on a tear, having rallied more than 600 pips or 5 percent over the past 24 hours. The significance of Fed’s actions continue to resonate over the currency markets and even though we have already seen parabolic moves in the pair, I think it will head higher.

Why?

On December 16th, when the [...]

Posted in 2009 eurusd forecasts, Bernanke, eur/gbp, eur/usd, euro break 1.40, forex blog, quantitative easing 4 Comments »

The British pound hit a high of 1.4605 this morning after falling to a low of 1.4137 yesterday. Although we have a mild improvement in risk appetite that is helping to propel the GBP, CAD, AUD and NZD higher, 2 stories making the wires are responsible for the volatility in the British pound.
Story #1 [...]

Posted in 2009 british pound forecast, British Pound, G7 meeting, eur/gbp 6 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 »

The British pound has fallen to a 7 year low against the US dollar and a record low against the Japanese Yen. Over the past 3 trading days, the GBP/USD has dropped more than 1000 pips or 7 percent. Consumer prices were hotter than the market expected, so what has fueled this aggressively [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, GBPJPY, Mervyn King, eur/gbp, forex blog 3 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 »