Both the European Central Bank and the Bank of England announced asset purchases today, but the Euro skyrocketed while the British pound fell, leading many currency traders to wonder What Sets the ECB Apart from Fed and BoE?
Read Boris’ take on the Bank of England Rate Decision
Before talking about why the euro recovered, here are [...]

Posted in 2009 eurusd forecasts, ECB, Trichet, eur/usd, forex blog No Comments »

ECB President Trichet does it once again. He has under delivered and postponed the inevitable. This morning, the central bank cut interest rates by only 25bp to 1.25 percent instead of the widely expected 50bp cut, sending the Euro through the roof.
Some questions immediately come to mind, which Trichet elegantly answered [...]

Posted in 2009 eurusd forecasts, Trichet, ecb rate cut, eur/usd, euro, forex blog 5 Comments »

The job of turning around the global economy lies of the shoulders of just a few people and in this group includes central bank governors. With such a tall task at hand, it leads me to wonder what are the people with such power and responsibility making. Is it enough to compensate for [...]

Posted in Bernanke, ECB, New Zealand dollar, Reserve Bank of Australia, Trichet, forex blog 17 Comments »

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 »

The big story in the currency market today is the Euro which hit a 2 month low against the US dollar. Ratings agency Moody’s warned that the exposure of Western European banks to Eastern European loans could affect their credit ratings. Up until the global credit crisis, Eastern European nations were growing [...]

Posted in 2009 eurusd forecasts, ECB, Trichet, eastern european banks euro, ecb rate cut, eur/usd, forex blog 2 Comments »