US retail sales and producer prices were basically in line with expectations but that does not undermine the fact that the data was very weak and confirms that the Federal Reserve will be cutting interest rates by 75bp next week. USD/JPY hit a 13 year low last night after news that the automaker [...]

Posted in Bernanke, Black Friday, Crude Oil Prices, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, US Dollar, US Economy, Yen Intervention, consumer spending, dollar rally, dollar record low, eur/gbp, eur/gbp record high, forex blog, retail sales, usd/jpy, usd/jpy intervention, zero interest rates 7 Comments »

The US dollar is tanking as jobless claims rise by the largest amount since November 1982, 26 years ago. As I have suspected, it is the 1980s all over again.
This confirms that the 533k drop in non-farm payrolls last month will not be the bottom in the labor market. When claims first [...]

Posted in EURJPY, Fed Rate Cut, Fed Rate Cut Expectations, Federal Reserve, Forex News, Japanese Yen, US Dollar, US Economy, US Treasuries, beige book dollar, dollar recession, eur/usd, euro, forex blog, jobs, non-farm payrolls, oil dollar, recession, usd/jpy, zero interest rates 1 Comment »

We are inching closer to a formal bailout plan for the Big 3 automakers and as previously suggested, regardless of the final outcome, the markets will cheer an end to the drawn out drama. The rally in equities this morning have driven major currencies higher against the US dollar and Japanese Yen, but it [...]

Posted in Carry Trades, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, Forex Technicals, US Dollar, US Economy, forex blog, retail sales, usd/jpy, zero interest rates 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 »

This morning, the sun is shining on New York City and on Wall Street.
President-elect Barack Obama was one of the few people that could have restored confidence in the financial markets through the appointment of a Cabinet members that the market trusts and a clearer plan of action for tackling the economic crisis. [...]

Posted in Citigroup Layoffs, Crude Oil Prices, Existing Home Sales, Fed Rate Cut, Forex News, Forex Podcast, US Dollar, US Economy, dollar intervention, dollar rally, forex blog, obama dollar 2 Comments »