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 »

The G7 released a statement on the Japanese Yen this morning, but unfortunately it is all talk and no action which suggests that the Japanese may have had a hard time convincing their US and European counterparts to join in on any physical intervention to sell Yen.
In this type of market environment, open threats [...]

Posted in Australian Dollar, Bank of Japan, Fed Rate Cut, Forex News, G7 meeting, US Dollar, US Economy, euro, forex blog No Comments »

Another day, another plan from the US government that has failed to impress the markets. This morning, the Treasury said that they will be injecting capital directly into banks by taking an equity stake. In theory this announcement should give banks the peace of mind to start lending as a direct capital injection from [...]

Posted in ECB, Fed Rate Cut, Federal Reserve, Forex, Forex News, G7 meeting, Japanese Yen, US Dollar, US Economy, euro, forex blog No Comments »