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 »

In my Daily Currency focus for FX360, I talk about whether Switzerland’s actions could trigger a Global FX War. The ultimate winner of any FX war is gold because if other central banks weaken their currency, then the only asset that isn’t facing selling by central banks is gold. Also Quantitative Easing will [...]

Posted in Swiss Franc, forex blog, quantitative easing, swiss national bank 1 Comment »

The Euro and British pound have come under severe selling pressure after the ECB and BoE cut interest rates by 50bp. Interest rates are now at historic lows for both central banks and even though the rate announcements were negative for both currencies, the Euro has sold off more aggressively than the British pound [...]

Posted in 2009 british pound forecast, 2009 eurusd forecasts, Bank of England, BoE rate cut, British Pound, ECB, Trichet, credit easing, ecb rate cut, eur/usd, euro, forex blog, quantitative easing 4 Comments »