For the second day in a row, Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Paulson pleaded to the power players of Washington to pass their request for $700 Billion to implement their Troubled Asset Relief Program (TARP). However if we move the letters around a bit, TARP becomes TRAP and that is [...]

Posted in Bernanke, Carry Trades, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Forex Podcast, dollar rally, eur/usd, fannie mae freddie mac, forex blog, paulson dollar No Comments »

The eyes of everyone from investment managers to stock and currency traders were glued to testimony of the 3 biggest players in the latest financial crisis. US Treasury Secretary Paulson, Federal Reserve Chairman Ben Bernanke and SEC Chairman Cox urged the Senate Banking Committee to approve their request for $700B of taxpayer money. Instead [...]

Posted in Bernanke, Currency forecasts, Dow, Fed Rate Cut Expectations, Federal Reserve, Forex News, Oil, dollar rally, euro, fannie mae freddie mac, forex blog, oil dollar, paulson 2 Comments »

The volatility that we have seen in the currency, stock and bond markets this past week has not been for the faint of heart. The Dow Jones Industrial Average fell 500 points on Monday, but instead of continuing lower over the course of the week, it staged the biggest 2 day rally in 5 [...]

Posted in Bank of Canada, Bank of England, Bernanke, Bloomberg, Currency forecasts, Dow, Durable Goods, Fed Emergency Cut, Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Forex, Forex News, Forex Podcast, G7 meeting, USD/CAD, dollar earnings, dollar rally, euro, fannie mae freddie mac, forex blog, usd/jpy No Comments »

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 »