So far this morning, central banks around the world have injected more than $200B in the financial system. Here are the figures:

And here are some facts about yesterday’s (9.15.08) price action:
USD/JPY - Biggest one day drop in 9 years
S&P500 - Biggest one day percentage drop since 9/11
30 Yr Treasuries fall to lowest level [...]

Posted in ECB, Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, forex blog, liquidity injection 1 Comment »

On Friday, the Dow hitting 10,000 still seemed to be a remote possibility, but today, that is starting to become a reality. We have warned on near daily basis about the danger of carry trades. Although the EUR/USD’s reaction to the systemic risk in the financial markets was not as clear, there was a clearly [...]

Posted in Bloomberg, Dow, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, Forex News, Lehman Brothers, Lehman Layoffs, US Dollar, US Economy, US Treasuries, bank safe, forex blog 2 Comments »

By Kathy Lien, Director of Currency Research for GFT
In the 2 weeks that I have been away, there have been dramatic moves in the currency market. Not only did the US dollar carve out a bottom, but the greenback’s recovery has been impressive. In less 1 month, the EUR/USD has plunged 1000 pips, [...]

Posted in Fed Rate Cut Expectations, Forex News, Forex Podcast, US Dollar, eur/usd, euro, forex blog 2 Comments »

The US dollar fell to a record low against the Euro as traders around the world grow increasingly worried about the health of Fannie Mae, Freddie Mac and the overall US banking sector.

(Source: My Technical Analyst Jamie Saettele at DailyFX.com)
The collapse in the dollar today is entirely due to risk aversion and flight to safety [...]

Posted in Bernanke, Fed Emergency Cut, Fed Rate Cut, Fed Rate Cut Expectations, Inflation, US Dollar, retail sales 1 Comment »

The Federal Reserve is getting ready to raise interest rates but a rate hike is not imminent. For the first time since August, the central bank has left rates unchanged at 2 percent. Although the FOMC statement is hawkish, the US dollar has failed to react because currency traders were looking for more. [...]

Posted in Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Federal Reserve No Comments »