Stocks are down 200 points as of lunch time in NY, carry trades have weakened significantly as well. So far, the biggest percentage decline has been seen in AUD/JPY which dropped 4.75 percent.
Although volatilities have increased, LIBOR rates and the TED spread continue to fall, indicating that lending conditions are improving. [...]

Posted in Fed Rate Cut, Federal Reserve, Forex News, TED Spread, US Dollar, US Economy, VIX No Comments »

The rejection of the $700B bailout plan by the House of Representatives came completely out of the left field, driving a knife through both US equities and the US dollar. For the Bush Administration, it certainly feels like they are moving one step forward and taking two steps back but the severity of [...]

Posted in Bernanke, Bloomberg, British Pound, Crude Oil Prices, Currency forecasts, FOMC, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, Forex Podcast, US Dollar, VIX, bank safe, consumer confidence, euro, forex blog, us earnings, usd/jpy No Comments »

No US economic data was released this morning explaining the listless action in the US dollar. Traders are hesitant because they know that things could change dramatically with the 3 event risks tomorrow that could shake up in the US dollar.
This is an excerpt from my daily article on DailyFX.com
The first is [...]

Posted in US Economy, VIX, consumer spending, retail sales 1 Comment »