Despite false rallies in the currency market, I have stressed that there is no reason for the liquidation to be over. I warned that the currency and stock market rallies were a mirage rather than a bottom and now, the pessimistic tone of the FOMC minutes has forced another wave of liquidation.
Tuesday’s [...]

Posted in Bernanke, Carry Trades, FOMC Minutes, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, US Dollar, USD/CAD, consumer spending, eur/usd, forex blog, oil dollar, usd/jpy, weak dollar earnings 3 Comments »

Despite the turmoil in the US financial markets, foreign demand for US securities remain robust, particularly since the Treasury’s International Capital flow report was for September, the month that Lehman collapsed.
TIC Report Explains Dollar Rally
Demand was particularly strong for US Treasuries and equities but foreigners dumped corporate bonds on the fear of [...]

Posted in Carry Trades, Fed Rate Cut, Fed Rate Cut Expectations, Forex, Forex News, US Dollar, dollar rally, eur/usd, euro, forex blog, oil dollar, paulson, paulson dollar No Comments »

I was in New Jersey this weekend and was amazed to see gas prices at $1.89 a gallon! Sometimes reality doesn’t set in until you venture outside of the Big Apple because at the Mobile Station on the corner of the West Side Highway and Canal Street in NY, a gallon is still selling [...]

Posted in Forex, Forex News, Oil, forex blog, gas prices, oil dollar 1 Comment »

Even though the lack of meaningful US economic data has kept the US dollar in flux, there is one commodity that is continuing to grind lower. Oil prices fell to the lowest level in 20 months as exporters wake up to reality that crude prices may stay at current levels for some time. [...]

Posted in Canadian Dollar, US Dollar, dollar earnings, dollar intervention, eur/usd, euro oil, forex blog, oil dollar No Comments »

The type of moves that we have seen in the currency market during the Asian and European trading sessions are typically what we see in a quarter or a half year. USD/JPY has fallen 5 percent, AUD/USD is down more than 8.5 percent while the NZD/USD is down 7 percent. The sell-off in [...]

Posted in Bank of Japan, British Pound, Canadian Dollar, Carry Trades, Dow Futures Carry Trades, ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, Oil, US Dollar, US Economy, dollar intervention, dow 1907, eur/usd, euro, forex blog, oil dollar 2 Comments »