Submitted Feb 21, 2013|From forexblog.oanda.com|2 comments

Capital Market is undergoing its self-regulated Q1 reality check of pitting financial markets progress against the real economy. The discouraging story surrounding the global real economy has resulted in risk-off trading strategies winning out. ...

Submitted Feb 20, 2013|From forexblog.oanda.com

Forex moves have been rather uninspiring, unless you are Cable of course, as investors wait to see if they are served up any clues on how many Fed members are in favor of ending QE early. The prospect of a QE exit is likely to limit further dollar ...

Submitted Feb 19, 2013|From forexblog.oanda.com|1 comment

IMF’s Lagarde admitted last week that foreign exchange rates are not far from “fair value.” Is this market trying to take her thoughts to task and trade them literally? Most of the recent market movements have been confined to relatively tight ...

Submitted Feb 16, 2013|From forexblog.oanda.com

Gathering more attention than usual will be next week’s Spanish bond auction. It’s appearing just ahead of the Italian general election and ahead of Spanish data that may suggest that the country missed last year’s deficit targets. France also ...

Submitted Feb 15, 2013|From forexblog.oanda.com|10 comments

All investors seek is clarity. How difficult can that be? Despite being on the same side, sometimes it’s been near impossible to get the 17-member Euro-zone policy makers to sit down and agree. So achieving consensus from the G20 meeting commencing ...

Submitted Feb 14, 2013|From forexblog.oanda.com|1 comment

A reading of global GDP reports has revealed another litany of woes. Contraction is no longer a vulgar economic word. It seems to be a staple amongst the maturing or cyclical economies defined under economics 101. The emerging economies, or new ...

Submitted Feb 12, 2013|From forexblog.oanda.com

Now that Currency Wars have been headline fodder for a couple of weeks, it has been necessary for authorities to step and cool that thought. This market has been assured from the highest authority, credible or not, that the ECB sees no risk of a ...

Submitted Feb 9, 2013|From forexblog.oanda.com

On Thursday the Head of the European Central Bank issued a confusing statement. Draghi’s remarks indicated that the ECB might cut its inflation projections as early as next month if the ‘single unit’ continues to appreciate. The market was trading ...

Submitted Feb 8, 2013|From forexblog.oanda.com

The market may be confused about what Japan’s Finance Minister Aso said or did not say. However, no one can be confused about Abeconomics and what it is supposed to achieve. Japan was very much likely to, and may still do, come under pressure at the ...

Submitted Feb 7, 2013|From forexblog.oanda.com|4 comments

The single currency starts the day with a bounce in its stride, trading higher against the mighty dollar. More importantly, Euro bonds yields are somewhat steady ahead of the European Bank’s rate decision and Draghi’s highly anticipated press ...

Submitted Feb 5, 2013|From forexblog.oanda.com|47 comments

Phew, the EUR selling finally stopped! Many EUR longs were close to pulling the trigger and use their get out jail card, with promises of trading another currency that relies on the fundamentals rather than having to understand the Euro political ...

Submitted Feb 4, 2013|From forexblog.oanda.com|9 comments

It was bound to happen. Euro equities have started the week in the cautious camp, especially after last Friday’s strong session, where the Dow ended the week punching through that psychological 14,000 level. It’s not unnatural to expect equities to ...

Submitted Feb 1, 2013|From forexblog.oanda.com

The loonie was supposed to weaken this week, only because everyone said so. However, the currency took off in one direction and that was higher. The bears did get a bit of a reprieve after Friday’s tepid US employment results, but at parity, there ...

Submitted Feb 1, 2013|From forexblog.oanda.com

The way the EUR is flying at the moment, and with the ECB due to meet next Thursday; a rate cut may not be imminent. The single currency has found an extra pair of lungs after it broke through that option barrier ‘of strength’ at 1.36. It is ...

Submitted Jan 31, 2013|From forexblog.oanda.com

The headline US GDP was a much larger pill to swallow than expected, the Fed announcement was anti-climatic, the Kiwi’s surprised by being less hawkish and now we find out that Europe’s backbone, Germany, is not on ‘sure’ footing. You have just ...

Submitted Jan 30, 2013|From forexblog.oanda.com|2 comments

Has the month-end distorting of prices already begun? The single currency has managed to punch through that psychological 1.35 barrier like a ‘hot knife through butter’ just as other asset classes stood still. There has been no helping hand from ...

Submitted Jan 29, 2013|From forexblog.oanda.com

Let’s call it another ‘dog day afternoon’ in Europe ahead of the North American handover. There is very little to get excited about. Investors are waiting for the meat of this week’s data release, starting with the FOMC gathering tomorrow and ending ...

Submitted Jan 28, 2013|From forexblog.oanda.com

It is shaping up to be a less than enthusiastic Monday morning open. The G10 pairs remain somewhat steady at levels close to Friday’s close, apart from sterling. In contrast, it looks like a few emerging currencies misbehaved during their session ...

Submitted Jan 26, 2013|From forexblog.oanda.com

Another benign inflation reading from Canada has the CAD ending the week extending its losses above parity outright. The country’s core-inflation rose by an annualized pace or +1.1% on Friday, well below Governor Carney and the Bank of Canada’s ...

Submitted Jan 25, 2013|From forexblog.oanda.com

Is there a strong ‘silent’ currency war in play? If so, the real investor needs to be officially invited so they can avoid betting against Central Banks this year. Looking at the yen, it remains one of the surest bets! Yesterday, the dollar managed ...