By the end of this month, the Federal Reserve will have completed its asset purchase program, bringing its second round of Quantitative Easing to an end. As QE2 draws to a close, it is worthwhile to consider how the dollar could react. When the first round of Quantitative Easing came to an end, [...]

Posted in 2011 dollar forecast, FOMC, Federal Reserve, dollar recession, dollar safe haven, quantitative easing No Comments »

Trading the Fed meeting is always difficult because in addition to a decision on rates, the tone of the FOMC statement also affects how the dollar trades. Rather than immediately jumping into the market after the announcement, I have found that in 11 out of the last 14 times that the Federal Reserve has [...]

Posted in 2010 dollar forecast, Federal Reserve, dollar rally, forex blog, quantitative easing 2 Comments »

Over the past 2 weeks, the British pound has soared more than 8 percent against the U.S. dollar. Like many countries around the world, the U.K. has succumbed to higher gas prices but unlike some other countries, the weakness of the British pound has exacerbated the rise in inflation. Hotter consumer prices helped to [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, Mervyn King, forex blog, quantitative easing 3 Comments »

The EUR/USD is on a tear, having rallied more than 600 pips or 5 percent over the past 24 hours. The significance of Fed’s actions continue to resonate over the currency markets and even though we have already seen parabolic moves in the pair, I think it will head higher.

Why?

On December 16th, when the [...]

Posted in 2009 eurusd forecasts, Bernanke, eur/gbp, eur/usd, euro break 1.40, forex blog, quantitative easing 4 Comments »

With the Fed’s announcement today, many people may be wondering “How does the Fed print money?” Here is a snippet from my Daily Piece on Currencies.
Most of the time when we say that a central bank “prints money” that does not mean that they actually fire up the electronic version of a printing [...]

Posted in Bernanke, Fed Rate Cut, Fed Rate Cut Expectations, quantitative easing 14 Comments »