The Euro has surged to 1.3157, a six week high against the U.S. dollar. The currency pair’s strength is a big departure from the price action of the other majors currencies this morning, which have weakened across the board. The break of the old highs opens the door for a move above the [...]

Posted in Bernanke, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex, eur/usd, forex blog 7 Comments »

The biggest event risk this week is tomorrow’s FOMC rate decision and unfortunately the Fed could serve up a big plate of disappointment. Recent economic data has been mixed. The following chart which illustrates how economic data has changed since the January FOMC meeting and we can see that there have been improvements [...]

Posted in FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Federal Reserve, forex blog 2 Comments »

Here’s a snippet from my Daily Currency Focus on GFTforex.com
After seeing the US dollar sell off for 5 straight days against the Euro and Japanese Yen, we were not entirely surprised to see today’s recovery, especially on the heels of better than expected economic data. The market has become accustomed to disappointments so good [...]

Posted in Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Federal Reserve, Forex, Forex News, Forex Technicals, eur/usd, forex blog 2 Comments »

The US dollar continued to hit new decade lows against the Japanese Yen and is inching closer to my 85 target. As you can see in the chart below, there is no support from here to 85. With US interest rates below Japanese rates, more adjustment is happening in USD/JPY.
I do [...]

Posted in Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, Forex News, Forex Technicals, boj intervention, forex signals, usd/jpy, usd/jpy intervention 14 Comments »

The Federal Reserve cut interest rates by 75bp to a range of 0 to 0.25 percent, the lowest level that this generation has ever seen.
In our FOMC preview, we talked about how the Fed may consider adopting a BoJ style rate cut that takes interest rates somewhere between 0.25 and 0 percent. [...]

Posted in Bernanke, FOMC, FOMC Minutes, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Interest rates, US Economy, dollar recession, dollar record low, eur/usd, forex blog, usd/jpy 8 Comments »