The Federal Reserve has officially run out of room to cut interest rates. For the first time since August 2007, they left interest rates unchanged at a target range of 0 to 0.25 percent.
The dollar rallied because the Fed did the minimum of what was needed to pacify the market, which was [...]

Posted in FOMC, Fed Rate Cut, Federal Reserve, Forex, dollar rally, forex blog, obama dollar No Comments »

In my Daily Currency Focus for GFT I talk about how Obama’s first 100 days can impact currencies:
In yesterday’s Daily Currency Focus we warned that investors should not bank on an Obama bounce. Based upon 5 decades worth of data, the Dow Jones Industrial Average fell more often than it rose on Inauguration [...]

Posted in forex blog, obama dollar 2 Comments »

In my Daily Currency Focus for GFT, I talk about whether there will be a bounce in currencies on Obama’s Inauguration Day:
On Tuesday, the United States of America will swear in a new President. Unlike many other Presidents in the past, the Obama phenomenon spans the globe. This global support has spurred speculation that [...]

Posted in President Obama, forex blog, obama dollar, obama stimulus plan 1 Comment »

The Wall Street Journal has a comprehensive article on how President Obama will be spending the Democrats’ proposed $850B economic stimulus plan. The article is definitely worth a read. Here are the highlights (click to enlarge):

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Tomorrow’s Treasury International Capital flow report will shed more light on whether the low yield in the US has driven sovereign wealth funds out of the US dollar. According to a recent report by China, they have continued to buy US dollars despite doubt that they would be unwilling to fund the growing US [...]

Posted in forex blog, obama dollar 1 Comment »