Global Economic Pressures Sneaking Back Into the Driver’s Seat?

I’ve been told not to use a question as a headline for an article – apparently it’s just not as effective, say the pros. But I can’t help myself; it’s not my style. I don’t like pretending I know exactly the minute‐by‐minute reasons behind short‐term, macro market movements.

As a colleague recently quipped:

Naturally, in any market, one often doesn't know the true fundamental forces until long after the fact, after the market has already made a large move.

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Published: 22 January 2009
Written by Editor
Forex  

A Little Rant on Coronation Day 2!

Not being a fan of mass hysteria myself, and always nervous when Kings are fabricated for a so‐called democracy, I chose to watch dollar rally yesterday instead of the coronation. That was good!

What we continue to find extremely interesting is the ongoing idea that the dollar will “soon collapse” or be “devalued” ... don’t you know??!! (Conspiracy abound.) But then again most all newsletter scribblers do love conspiracies. No matter it is all BS, it sells newsletters and that’s “the important thing,” don’t you know??!!

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Published: 21 January 2009
Written by Editor
Forex  

United Kingdom Needs a Savior Too

I’m not sure if you’ve heard, but today is the day Barack Hussein Obama gets inaugurated as the next President of the United States of America.

Anyway, considering the unity we’re told he will bring to this country, it’s only fitting that BHO arrives during such trying economic times. Will he be the savior this country has been continuously told he’ll be by the fawning media elites?

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Published: 20 January 2009
Written by Editor
Forex  

ECB Cuts 50 BPs ... Plus Key Levels on EURUSD

ECB rates to 0%? Well maybe not yet ... but now even European Central Bank interest rates are making their way to the central bank gathering point at zero percent. The market expected the ECB to cut 50 basis points. But it also considered 75 basis points was possible. And it also considered only 25 basis points was possible.

Most agreed Trichet’s post‐decision comments would be the difference maker. Anyway, before overnight and this morning, the play was to sell the euro. Then the buyers came in ahead of the announcement in no dramatic fashion.

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Published: 15 January 2009
Written by Editor
Forex  

ECB Looms and ERM risks rise!

A while back we started talking about the risk to breakup of the European Exchange Rate Mechanism (ERM). Of course the usual howls of disbelief we usually get when we look in the opposite direction of the consensus. But the reality is, spreads are widening fast among the various sovereign bond markets in Europe the market is pricing in risk-- something that isn't supposed to happen within the ERM.

"Spain was warned on Monday by S&P about its high levels of public and private debt, while Greece and Ireland were told on Friday that their deteriorating public finances could lead to downgrades.

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Published: 14 January 2009
Written by Editor
Forex  
  1. Currency Currents - 01/13/2009
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  5. Currency Currents - 01/05/2009