Here is my dissection of the March 16 Fed Statement
FOMC Statement March 16, 2010
Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing ( upgraded “from deterioration in the labor market is abating”). Household spending is expanding at a [...]

Posted in FOMC, FOMC Minutes, Fed Rate Cut, Federal Reserve, forex blog 4 Comments »

USD/JPY is on a tear this morning. US equities is also trading higher which is completely mind boggling given the fact that US economic data was very weak and Fed Chairman Ben Bernanke warned that we may not be looking at a recovery in the US economy until 2011 or 2012.
There could still be [...]

Posted in Bernanke, FOMC, FOMC Minutes, Federal Reserve, Forex Technicals, Japanese Yen, consumer confidence, forex blog, usd/jpy 7 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 »

Despite false rallies in the currency market, I have stressed that there is no reason for the liquidation to be over. I warned that the currency and stock market rallies were a mirage rather than a bottom and now, the pessimistic tone of the FOMC minutes has forced another wave of liquidation.
Tuesday’s [...]

Posted in Bernanke, Carry Trades, FOMC Minutes, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, US Dollar, USD/CAD, consumer spending, eur/usd, forex blog, oil dollar, usd/jpy, weak dollar earnings 3 Comments »

US consumer prices dropped 1 percent last month, taking the annualized pace of growth to 3.7 percent, which is the lowest level since October 2007. Falling oil prices takes the credit for lower inflationary pressures with gasoline prices tracking the 50 percent decline in crude. Gas station receipts fell a whopping 14 percent [...]

Posted in Bernanke, FOMC Minutes, Fed Emergency Cut, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Forex Trading Expo, Japanese Yen, US Dollar, US Economy, forex blog No Comments »