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 »

The case for a bounce in equities this week was strong following the Lehman CDS Auction and the possibility of new measures from the G7 and G20 nations in Washington this weekend. New guarantees and a host of other announcements have helped to stabilize the financial markets and ease the credit crisis, but is this [...]

Posted in ECB, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, GDP, Japanese Yen, TARP plan dollar, US Dollar, US Economy, euro, forex blog, paulson, paulson dollar No Comments »

The eyes of everyone from investment managers to stock and currency traders were glued to testimony of the 3 biggest players in the latest financial crisis. US Treasury Secretary Paulson, Federal Reserve Chairman Ben Bernanke and SEC Chairman Cox urged the Senate Banking Committee to approve their request for $700B of taxpayer money. Instead [...]

Posted in Bernanke, Currency forecasts, Dow, Fed Rate Cut Expectations, Federal Reserve, Forex News, Oil, dollar rally, euro, fannie mae freddie mac, forex blog, oil dollar, paulson 2 Comments »

The US dollar continues to recover this morning on the aftermath of the 3Ps - Paulson, Plosser and price of oil. Oil prices are trading on the $125 handle and since last Monday they have fallen more than 14 percent. If oil prices reach $100 a barrel, half of the Fed’s problems would [...]

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The Clear Message from the Bush Administration
Last Tuesday, Federal Reserve Chairman Ben Bernanke breaks from tradition and talked about currencies. He drew links between the weaker dollar and higher import costs and consumer price inflation. His cohorts including Fed President Geithner confirmed that the central bank is paying “very close attention” to [...]

Posted in Bernanke, Intervention, dollar intervention, paulson No Comments »