Currencies by Country:

ECB Outlook: It’s Time to Cut Interest Rates

In the days leading up to the European Central Bank’s rate decision on July 3rd, 2008, many political leaders around Europe publically pleaded for the ECB to leave interest rates unchanged. Among others, French President Sarkozy voiced the opinion that the recent rise in inflation was due primarily to the spike in commodity prices.¹ As […]

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Peak Oil in the U.K.

The price of oil has dictated the dollars recent resurgence, but it has not been favorable to the pound. The United Kingdom is a net oil exporter; through North Sea oil fields that produce around 1.7 million barrels a day. A drop in the price of oil would hurt profit margins at some of Britain’s […]

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The Cable

“It may still just be summer but there is a feeling of chill in the economic air. The British economy is going through a difficult and painful adjustment due to higher energy and commodity prices and in banking, credit and housing markets. This adjustment to our economy cannot be avoided and as a result, inflation […]

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Raising the White Flag

It is not easy for many to admit that they made an error. It seems the President Trichet might finally be starting to embark on that difficult path. After raising rates in the Euro-Zone over the protests of many top figures within that continent, Trichet finally admitted what the rest of the world had realized […]

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The Dollars Resurgence

The Dollars resurgence can be attributed to a variety of factors European stagnation, oils collapse, or better yet Michael Phelps.The most important factor is that the USD is considered the lesser of two evils in regards to economic health.Governor King came out and expressed that the down side risks of recession outweighed the future risks […]

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…More Calm Before the Storm

So a week ago, I wrote that the US Non-Farm Payrolls was the event “for all the marbles.” That was true, and we have seen the US Dollar continue its rally through this week largely on the back of that news. However, within the span of one hour tomorrow, there are two news events that […]

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Australian Blues

The AUD has had a remarkable run for the past seven years, the AUD has appreciated from .48 to near parity over the past seven years. The commodity boom has been very beneficial to the Australian economy. Exports of iron and raw materials have caused the Aussie economy to boom. The global slowdown will definitely […]

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Big Mac

The theory of Purchasing Price Parity is hard to digest because of the fact that is so abstract and it does not apply non-tradable goods.PPP is a theory that states all goods will cost the same across borders, because if one country charges more then consumers will change their spending patterns.There are a number of […]

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The Calm Before the Storm

Tomorrow is the one for all the marbles. The single most important economic announcement for the USD takes place tomorrow: Non-Farm Payrolls (NFPs). Despite today’s very important announcement of US GDP for Q2, the EUR/USD essentially stood pat around 1.56. What is special about NFPs is that, unlike announcements such as rate decisions or GDP […]

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Risk in the Currency Market

Guns are dangerous so are pools, but which one is more dangerous?Steve Levitt a Professor from the University of Chicago analyzed this question through economic analysis.His results overwhelmingly supported the conclusion that pools killed 1000 times more children; yet pool control laws are not on the agenda for Congress.In short expectations are every thing in […]

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