The biggest event risk this week is undoubtedly the Federal Reserve’s monetary policy decision on Wednesday. Now more than ever, the Fed’s decision could turnaround the currency and equity markets. Since the last interest rate cut by the central bank on October 8th, the dollar has rallied more than 8 percent and the [...]

Posted in Currency Intervention, ECB, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Fed fund futures usdjpy, Federal Reserve, Forex News, Forex Podcast, US Dollar, US Economy, coordinated rate cuts, euro, forex blog No Comments »

After the sharp volatility in the currency and equity markets during the Asian and European trading sessions, the US session was relatively quiet up until the last 10 minutes of trading. For most of the US session, stocks oscillated between positive and negative territory, giving traders hope that we may be finally seeing some [...]

Posted in Australian Dollar, ECB, Fed Rate Cut, Federal Reserve, Forex News, Japanese Yen, US Dollar, US Economy, euro, reserve bank of australia intervention No Comments »

The US dollar is on steroids this morning as the sell-off in global equities sends the dollar to a 2 year high against the Euro. The EUR/USD is within 3 percent of its fair value of 1.20 while the GBP/USD and USD/JPY are now undervalued on a purchasing power parity basis. However PPPs [...]

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The G7 released a statement on the Japanese Yen this morning, but unfortunately it is all talk and no action which suggests that the Japanese may have had a hard time convincing their US and European counterparts to join in on any physical intervention to sell Yen.
In this type of market environment, open threats [...]

Posted in Australian Dollar, Bank of Japan, Fed Rate Cut, Forex News, G7 meeting, US Dollar, US Economy, euro, forex blog No Comments »

The type of moves that we have seen in the currency market during the Asian and European trading sessions are typically what we see in a quarter or a half year. USD/JPY has fallen 5 percent, AUD/USD is down more than 8.5 percent while the NZD/USD is down 7 percent. The sell-off in [...]

Posted in Bank of Japan, British Pound, Canadian Dollar, Carry Trades, Dow Futures Carry Trades, ECB, FX Radio, Fed Rate Cut, Federal Reserve, Forex News, Forex Podcast, Japanese Yen, Oil, US Dollar, US Economy, dollar intervention, dow 1907, eur/usd, euro, forex blog, oil dollar 2 Comments »