The following charts of the EUR/USD and USD/JPY shows the power of G7 meetings. As you can see, their announcements have frequently marked a top or bottom in the currency pairs. Sometimes this happens immediately and other times it takes a while longer. Judge for yourself what will happen this time around:

Posted in G7 intervention, G7 meeting, forex blog 4 Comments »

The US dollar is on steroids this morning as the sell-off in global equities sends the dollar to a 2 year high against the Euro. The EUR/USD is within 3 percent of its fair value of 1.20 while the GBP/USD and USD/JPY are now undervalued on a purchasing power parity basis. However PPPs [...]

Posted in ECB, Fed Rate Cut, Federal Reserve, Forex News, G7 intervention, G7 meeting, Japanese Yen, US Dollar, US Economy, euro, forex blog 2 Comments »