2008 has been a crazy year in the foreign exchange markets and hopefully 2009 will bring more steady times for the global economy as a whole. The tremendous amount of fiscal and monetary stimulus that central banks around the world have doled out should begin to have their effect in the second half of [...]

Posted in 2009 currency forecasts, 2009 eurusd forecasts, 2009 forex forecasts, 2009 gbpusd forecast, Australian Dollar, British Pound, Canadian Dollar, Currency forecasts, Japanese Yen, New Zealand dollar, Swiss Franc, euro, forex blog 3 Comments »

Fed fund futures are already pricing in a greater chance that the central bank will cut rates by 75bp on December 16th than 50bp. That would bring US interests down to 0.25% and turn the US dollar into the lowest yielding currency in the developed world.
Since Japan’s interest rate is currently 0.3%, [...]

Posted in British Pound, Canadian Dollar, Forex News, New Zealand dollar, Swiss Franc, US Dollar, eur/usd, euro, forex blog, forex book, zero interest rates 5 Comments »

With the global economic downturn in full swing, one of the burning questions on everyone’s minds is who will be the first central bank to take interest rates to zero and how close will everyone else get?
We are in a global easing cycle and the varying aggressiveness of central banks around the world means [...]

Posted in Australian Dollar, Bank of Canada, Bank of England, Bank of Japan, Bernanke, BoE rate cut, British Pound, Canadian Dollar, ECB, Fed Rate Cut, Federal Reserve, Forex, Forex News, Japanese Yen, Reserve Bank of Australia, Swiss Franc, USD/CAD, ecb rate cut, forex blog, reserve bank of australia intervention, reserve bank of new zealand, swiss national bank No Comments »

It is almost as if there is a new man in town at the BoE. Yesterday, I argued that the BoE could cut by 100bp and they even blew away that outside expectation.
Earlier this year, Mervyn King was still being criticized for being behind the curve. A month ago, he [...]

Posted in Bank of England, BoE rate cut, British Pound, Swiss Franc, forex blog No Comments »

I found this very interesting post on the Swiss Banking sector in the comment section of Mish’s Global Economic Trend Analysis Blog
Definitely worth a read:
What people are not talking about is how close Switzerland came to collapsing. After Iceland, no other country has a greater share of its GDP dependent on banking. Remember [...]

Posted in Swiss Franc, forex blog 1 Comment »