Before the US stock markets opened this morning, the Federal Reserve announced a plan to buy commercial paper directly from issuers in yet another attempt to unfreeze the credit markets. Although this led to a rally in US stocks, USD/JPY and other carry trades, the rally was short-lived. Having been up as much [...]

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It has been an extremely volatile day in the currency markets with big figures (100 pip) moves in USD/JPY happening in a blink of an eye. The more than 4 percent decline in USD/JPY is the largest single day percentage drop in close to 10 years. The degree of the moves that we [...]

Posted in ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, US Dollar, euro, forex blog 1 Comment »

The US’ $700B bailout plan will not do the trick - at least that’s how the currency market feels this morning. Deleveraging or the liquidation of risk is happening on a global scale as investors question if guaranteeing funds and bailing out banks are the right prescriptions for the credit crisis. Every single [...]

Posted in ECB, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, US Dollar, US Economy, forex blog 3 Comments »

Non-farm payrolls dropped by 159k last month, 50 percent more than the market expected. Even though there was a minor upward revision to the August data, the Fed will have no choice but to cut interest rates at the end of the month. Fed fund futures are pricing in a 50bp rate cut [...]

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Will Non-Farm Payrolls Push the Fed to Cut Interest Rates?
September non-farm payrolls are due for release on Friday and now more than ever the level of job losses could determine whether the Federal Reserve will cut interest rates this month and by how much. The US dollar hit a one year high against the [...]

Posted in ECB, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, US Dollar, US Economy, euro, forex blog, non-farm payrolls 1 Comment »