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 »

Quantitative Easing (QE) are the latest buzz words in the financial markets. It is important to become intimately comfortable with these words because they will be the catch phrase of 2009 thanks to the latest interest rate cuts by the Federal Reserve and the Bank of Japan.

What is Quantitative Easing?
Quantitative Easing is a monetary [...]

Posted in Fed Rate Cut, Fed rate hike, Federal Reserve, Forex News, forex blog, forex signals, quantitative easing 19 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 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 »

With stocks falling close to a 2 year low yesterday, Fed President Ben Bernanke attempted to stabilize the stock market and the US dollar by saying that they they are considering “extending the duration” of their emergency lending facilities to investment banks.
The Fed is clearly worried about the volatility in stocks and they [...]

Posted in Bernanke, FOMC, Fed rate hike, Federal Reserve, US Dollar, dollar rally 1 Comment »