The US economy has officially entered a recession and the labor market numbers that are due on Friday will confirm that. Not only do we expect the US economy to report its eleventh consecutive month of job losses but the job losses will probably be the largest in 26 years. In 2001, there [...]

Posted in Forex, Forex News, US Dollar, dollar rally, forex blog, non-farm payrolls, usd/jpy No Comments »

There has been 3 recessions in the past 30 years. In each of those recessions, the dollar weakened in the first six months of the recession, then gained strength in the next six. Twelve months into the current recession, we see this pattern in the dollar repeated once again.
The more important question however is whether [...]

Posted in Forex News, Forex Technicals, US Dollar, dollar rally, dollar recession, forex blog, oil dollar, recession 5 Comments »

Now that US economy is officially in recession, the big question on everyone’s mind is, how long will it last?
So far, the current recession is the fourth longest in the past 80 years and its on track to be as long as recession in the 1970s and 80s, which lasted for 16 months. However [...]

Posted in US Dollar, dollar rally, recession No Comments »

On the eve before Thanksgiving, the price action in the currency market has been very erratic. Equities rallied for the fourth straight trading session while the US dollar weakened against the Australian and New Zealand dollars but strengthened against the Euro, British Pound and Japanese Yen.
Currencies appear to be decoupling from equities [...]

Posted in Bernanke, Currency forecasts, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex, Forex News, Forex Technicals, US Dollar, consumer confidence, consumer spending, eur/usd, euro, forex blog, jobs No Comments »

US GDP growth has contracted but that has not stopped the equity and currency market from rallying. The GDP number was not as bad as the market had feared but what really drove the markets higher was the Federal Reserve’s new Term Asset-Backed Securities Loan Facility (TALF).
Both the outgoing and incoming Presidents are [...]

Posted in Bernanke, FOMC, Forex, Forex News, Forex Podcast, TARP plan dollar, US Dollar, US Economy, consumer spending, coordinated rate cuts, dollar earnings, eur/usd, euro, forex blog 1 Comment »