The US government is pulling out all of the stops but the market is not convinced that the storm has passed. The price action in everything from stocks, bonds, the US dollar and gold indicates that every new rescue is having less of an impact. The government’s shock factor is disappearing. In addition to [...]

Posted in Forex News, Lehman, Lehman Brothers, forex blog 1 Comment »

On Friday, the Dow hitting 10,000 still seemed to be a remote possibility, but today, that is starting to become a reality. We have warned on near daily basis about the danger of carry trades. Although the EUR/USD’s reaction to the systemic risk in the financial markets was not as clear, there was a clearly [...]

Posted in Bloomberg, Dow, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, Forex News, Lehman Brothers, Lehman Layoffs, US Dollar, US Economy, US Treasuries, bank safe, forex blog 2 Comments »

The US dollar dropped like a rock at the open of the Asian trading session on Sunday. It has been a long weekend for US government officials and the leaders of Wall Street Banks. Bank of America and Barclays pulled out talks to buy Lehman Brothers as the government refused to provide sufficient funding. [...]

Posted in Carry Trades, Lehman Brothers, US Dollar, euro, forex blog 3 Comments »