The U.S. dollar has weakened significantly driving many of the major currencies to the highest level in months. Here’s a table illustrating the significance of today’s moves. I expect at least another 2 percent decline in the U.S. dollar against the key currencies (Short and Long Term Outlook for U.S. Dollar).

The fact [...]

Posted in 2009 us dollar forecast, Forex Technicals, euro, euro break 1.40, forex blog 6 Comments »

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 »

EURO BREAKS 1.40 HOW MUCH FURTHER CAN IT FALL?
The Euro broke 1.40 following the Reserve Bank of New Zealand interest rate decision as traders realized that the European Central Bank could cut interest rates over the next few months. Despite the hawkishness of ECB President Trichet, it should just be a matter of time [...]

Posted in ECB, Forex News, Forex Podcast, US Dollar, eur/usd, euro, euro break 1.40, forex blog 2 Comments »