Archive for September, 2009
« Previous EntriesYen/Yang?
Tuesday, September 29th, 2009I’ve written recently about the strength of the Japanese yen and some of the reasons behind the move that brought JPY to an eight month high vs. the US dollar (USD). Last week, Japan’s Finance Minister Fuji had voiced his opposition to government intervention to slow the strength of the Yen, but this week he [...]
Aussie Leads the Way on Rate Hike Speculation!
Monday, September 28th, 2009In a Bloomberg report out today, Australian Central Bank Governor Glenn Stevens announced that “government stimulus spending needs to be eased and that interest rates need to be raised” in light of Australian’s expanding economy. This of course is good news for AUD/USD (+.79%) and GBP/AUD (-1.11%) today as the US dollar is now the [...]
All About Yen!
Friday, September 25th, 2009Another strong day for the yen today, up against all of the currency pairs commonly followed. Its particularly strong against GBP (+2.07), as I’ve noted over the last couple days the problems facing the Sterling. So while GBP and USD get all of the attention with their QE (quantitative easing) programs, the Yen just [...]
Tough Start for GBP!
Thursday, September 24th, 2009Sometimes in trading you just have to stick with your initial “gut” feeling. Yesterday I wrote in an article below, “Sound As A Pound…. For Now” that I thought the long-term outlook for GBP was negative but that it would probably take a while for the market to catch on before the serious selling would [...]
See What I Mean?
Wednesday, September 23rd, 2009It looks like the FED did as was expected and the market was kind enough to follow suit, by selling the dollar and buying up other currencies. But see what I mean about the volatility! Take a look at this 5-minute chart of EUR/USD. (click chart to enlarge) Over 60 pips in less than a [...]
FOMC Rate Decision at 2:15 EST!
Wednesday, September 23rd, 2009Just a head’s up for the day-traders out there, whom I’m sure are thoroughly familiar with the price action that occurs right around the rate decision. I usually advise that the less-experienced traders sit this event out as the increased volatility can spook even the most seasoned vets. As I wrote on Monday, its not [...]
Sound As A Pound….For Now!
Wednesday, September 23rd, 2009Yesterday, the Bank of England vote unanimously to leave the size of its asset purchase plan unchanged at 175 billion pounds and voted to leave interest rates unchanged at 0.5%. This is seemingly good news for the Pound in the near-term, as the currency markets are reflecting this morning with the British pound up vs. [...]
That Didn’t Take Long!
Tuesday, September 22nd, 2009It looks like the markets now are soooo convinced to not expect anything out of the FOMC and Ben Bernanke that they are not even going to wait for the confirmation. Risk appetite is back today in a major way and the dollar is giving back some of the short-term gains I mentioned in yesterday’s [...]
Dollar Strength Going Into the FOMC Meeting, G-20
Monday, September 21st, 2009All eyes are on Bernanke and the FED this week as investors are seeking a little more clarity over Federal Reserve Policy going forward and what they plan to do with regard to interest rates. Couple that with the G-20 meeting this week and growing concerns over the rising US fiscal deficit and you have [...]
Currency Markets Drinking the Bernanke Kool-Aid!
Wednesday, September 16th, 2009It is appears as though the currency markets are believing the economic numbers that are coming out of the US, that inflation is tame at .4% so that there is no chance that Bernanke and the Fed will even consider raising rates anytime soon. Also, yesterday Bernanke suggested that the recession in the US may [...]
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