Articles

June 19th, 2012 - With equities rising and the U.S. dollar weakening, the price action in the financial markets tell us that investors are positioning for a dovish and dollar negative outcome from the FOMC meeting. This sentiment is a bit surprising considering that less than 2 weeks ago, Fed Chairman Ben Bernanke downplayed the weakness of the U.S. labor market and reset the market...

June 19th, 2012 - Despite weaker economic data out of Europe, the euro is trading higher against the U.S. dollar this morning, which tells us that Spain’s borrowing costs are the only thing that matters right now to EUR/USD traders. Thanks to a T-bill sale that was slightly above target, Spanish ten year yields are back below 7%, helping to stem the losses in the euro. As the d...

June 18th, 2012 - [vimeo]http://vimeo.com/44289133[/vimeo]...

June 18th, 2012 - Daily FX Market Roundup / Asia Preview 06-18-12 EUR: Short and Long Term Risk for Euro USD: Holding Strong Ahead of G20 Statement GBP: Inflation is Important to the Bank of England AUD: Looking to RBA Minutes for Clues on Central Bank’s Dovishness CAD: Wholesale Sales on Tap NZD: Current Account Figures to be Released JPY: Down Against USD but Little ...

June 18th, 2012 - As it turns out, the winner of the Greek elections did not matter. The victory of the pro-euro, pro-austerity New Democracy Party did not change the outlook for the EUR/USD which closed its gap and is trading lower than where it ended on Friday. Of course, a win by the Leftist party would have left policymakers with a big mess to clean up today, but the initial enthu...

June 18th, 2012 - By all accounts, the euro was an ambitious experiment. Its original architects, including former ECB President Trichet set out a vision of a common currency and a single central bank that would forge a stronger economic and monetary union for the region. A decade has now passed and we are seeing all of the ugly truths of having a currency representing 17 different...

June 18th, 2012 - Ask anyone one on the street whether the U.S. economy could use a jolt of stimulus and the answer will be an overwhelming YES! The labor market, housing market and the stock market is in terrible shape and if Europe continues to wreck havoc on global demand, the meager amount of growth that the U.S. economy enjoyed this past year will become nonexistent. Yet the lea...

June 18th, 2012 - The question of how much Yen pain can Japan bear is a question of how low the Japanese government will allow USD/JPY to go. Since the middle of March, USD/JPY has fallen as much as 7 percent. While significant milestones were not reached, USD/JPY is trading not far from its record low. A strong currency is one of the worst things possible for an export dependent co...

June 17th, 2012 - Operation Twist is a clever way for the Federal Reserve to stimulate the economy when interest rates are zero. Named after a dance craze from the 1960s, the Federal Reserve was inspired by the Chubby Checker hit “The Twist” that made Billboard records across the nation. When an economy is weak, central banks usually respond by lowering interest rates but ...

May 30th, 2012 - [vimeo]http://vimeo.com/44088704[/vimeo]...

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