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 [...]
Archive | Americas RSS feed for this section
Too Big, or not Too Big: That is the question!
Many people involved with the market are adamantly opposed to any actions justified by the term “too big to let fail.” In capitalism, a company should be able to experience without interference both the profits and the losses that come with business. In theory, if a company has placed itself in a position where there [...]
If You Start Pushing A Snowball Down A Hill…
On June 28, 1914, Gavrilo Princip assassinated the heir to the Austro-Hungarian throne, leading to the onset of the Great War. Indirectly, Princip’s actions led not only to WWI, but also to WWII and as the Cold War. In other words, Princip inadvertently became one of the most important figures of the 20th century. Fast [...]
US Dollar – Predicting the Future (Part 2!)
Last week I mentioned that though the G8 conference would impact the US dollar in the short term, the ultimate fate of the USD will ultimately be determined more by Bernanke than by anyone else. The Group of Eight’s meeting has come and gone, offering little good news for the USD. In the FOREX market, [...]
How Should We React to the Liquidity Crisis?
The European Central Bank and the United States Federal Reserve are bailing out the financial markets right now. BNP Paribas declared that they are suspending withdrawals from three of their investment funds, and the market reacted pretty poorly. The overnight lending rate for euros shot up to 4.7%, leading the ECB to distribute over 155 [...]
Don’t Be Fooled by the Rebound in Yen Crosses
The carry trade is not back. At all. Stay away for right now. The Dow rallied to close 150 points higher yesterday, and yen crosses followed that stock market rally. The high-yielding currencies, especially, made back a lot of their losses. But the upward movement is likely to be temporary because the current market is [...]
FOMC Announcement Surprisingly Hawkish
The actual interest rate decision yesterday afternoon did not surprise anyone in the forex market. The Fed kept rates the same which, despite the bank’s famous lack of transparency, was predicted by everyone. The announcement accompanying the FOMC decision did provide some short-term support for dollar bulls. But of greater concern for most forex analysts, [...]
US Dollar Sinking with Credit Market Anticipating Further Shocks
The state of the US economy is not dire, but it certainly does not bode well for the US dollar. Job creation was at its lowest level since February, with the NFP printing at an abysmal 92K. But even worse for the dollar is the fact that job numbers are not the cause of growth [...]
Risk Aversion and Asian Growth Compete for the Direction of the Forex Market
Global equities markets took a beating last week. The phenomenon began in the United States (on the back of subprime mortgage concerns) and it spread to the financial markets in other countries. For the forex market, the primary impact of the losses was a return of risk-aversion. The risk appetite of currency traders has waned, [...]
US GDP Strong But Does Not Carry Momentum
The GDP release for the second quarter came out strong this morning, printing at 6.4% annualized growth versus 3.2% expected. This was on top of a revised 0.6% pace for the first quarter of 2007. The dollar was already trading upwards early this morning and in European trading in anticipation of a positive release. EUR/USD [...]
United States Dollar
Indonesia Rupiah
Turkish Lira 
Thai Baht
Canadian Dollar
Venezuelan Bolivar
Japanese Yen
Australian Dollar
UK Pound
Indian Rupee
UAE Emirati Dirham
Iranian Rial