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 »

G20 Finance Ministers and Central Bankers are gathering in Korea right now talking about currencies. There has been a lot of speculation about whether or not a statement will released on Saturday that show a unified view on currencies. In my article G20 Wildcard, I wrote extensively about the possible language that the G20 [...]

Posted in G7 meeting, forex blog, g20 meeting dollar 7 Comments »

The British pound hit a high of 1.4605 this morning after falling to a low of 1.4137 yesterday. Although we have a mild improvement in risk appetite that is helping to propel the GBP, CAD, AUD and NZD higher, 2 stories making the wires are responsible for the volatility in the British pound.
Story #1 [...]

Posted in 2009 british pound forecast, British Pound, G7 meeting, eur/gbp 6 Comments »

The G7 meeting begins tomorrow. Take a look at how the EUR/USD traded after the G7 changed the currency portion of their communique (What to Expect for the G7 Meeting in Rome).
USD/JPY Chart

Posted in G7 meeting, forex blog 2 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 »