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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Random Country Report: Part 3 – Hungary
One of the interesting aspects about today’s country in the Random Country Report is its youth; the country abandoned communism less than twenty years ago. Hungary, like many of neighbors, is a relatively young republic, and while many countries have had centuries to adapt to capitalism, Hungary has had about eighteen years to acclimate to [...]
What’s Next?
With this week’s ECB’s decision all but official, a more important question looms: what’s next? The ECB is a bank whose primary focus — witnessed in both its charter and its past actions — is price stability. Despite poor economic performance in recent months, the ECB essentially has to raise rates this week, as the [...]
Big Week Ahead!
In some weeks, the news highlight in the FOREX world is an Italian report on car sales. Other weeks, the major headline is that Nigerian workers are striking against the oil companies. However, this week, there’s plenty to be excited about, especially the most important gathering since the meeting of the Five Families: the U.S. [...]
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 [...]
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 [...]
EUR/USD Should See Support
The US Non-Farm Payrolls report disappointed the forex market this morning, listing only 92K new jobs. We should have expected this based on the dreadful ADP survey, but ADP has a history of missing the mark on Non-Farm Payrolls. And so economists were actually expecting 127K new jobs, and the US labor market did not [...]
Euro Rebounds on Dollar Weakness
In the past week, EURUSD has lost more than 200 pips from its record highs. But recent evidence shows signs of a retracing, with support for the euro regaining strength. But it’s not like currency traders have fallen back in love with the euro. Most of the movement in the currency pair in recent days [...]
Future Moves of Euro-Dollar
EUR/USD has been establishing fresh highs almost daily for the past two weeks. The upward movement in the currency pair is due to a variety of factors pointing to both euro strength and dollar weakness. Economic growth within the Eurozone is forecast to be 2.6% in 2007, putting the 13-country region at a pace behind [...]
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