Submitted Aug 7, 2012|From forexblog.oanda.com|3 comments

Overall it is expected to be a quiet data week either side of the pond as investors try to justify adding risk to their portfolios. Positive sentiment remains buoyant in early euro trading this morning, with both equities and the single unit ...

Submitted Aug 4, 2012|From forexblog.oanda.com|7 comments

The PBoC will be making stabilizing economic growth a bigger priority. The authorities are obviously concerned over the slowdown of the world’s second largest economy. In their Q2 monetary policy report this week, policy makers repeated their ...

Submitted Aug 4, 2012|From forexblog.oanda.com

The Fed declined to deliver policy easing this week, disappointing many whose expectations had been building for something over the past few weeks. Policy makers can probably see in Friday’s NFP print some vindication for their caution. Overall, ...

Submitted Aug 3, 2012|From forexblog.oanda.com

The message from Draghi and Ben seems to be rather similar, policy response is possible, but they have yet to convince “internal skeptics of the need for immediate action.” The ECB has sent a message indicating that it “may” conduct open market ...

Submitted Aug 3, 2012|From forexblog.oanda.com|5 comments

Monetary policy paralysis has this market battered and bruised after this weeks FX moves. Draghi’s initial fighting words yesterday had the market classically stopping out a plethora of weaker EUR short outright positions ahead of 1.24, only to come ...

Submitted Aug 2, 2012|From forexblog.oanda.com|6 comments

The FED has indicated that the “buck does not stop here.” They are not the leader, yesterday’s dovish statement has them wanting to follow the ECB’s lead. The failure of Ben and company to deliver new accommodation has raised the pressure on Draghi ...

Submitted Aug 1, 2012|From forexblog.oanda.com

USD/CAD continues to hover just above parity in this questionable “risk on” back drop. Some analysts are calling for a .9800 print short term. So far this morning the CAD is supported by a positive read from the US ADP labor number (+163k). Another ...

Submitted Aug 1, 2012|From forexblog.oanda.com|2 comments

The market is trying hard to stay out of trouble and not accumulate any unnecessary new positions ahead of this weeks Central bank meetings. Already we have seen this week that despite poor European data being released, the market “continues to ...

Submitted Jul 30, 2012|From forexblog.oanda.com

Draghi and Company are taking a big gamble. After last weeks emphatic verbal position of support for the single currency they are expected to be there again this Thursday behind the EUR for all to see, raising expectations significantly of what’s ...

Submitted Jul 28, 2012|From forexblog.oanda.com|1 comment

Is the PBoC starting to guide the yuan downward outright against the dollar after two years of trying to boost its value? The move seems to be reflecting concern in Beijing over China’s slowing economy. Is this enough of an excuse to risk a ...

Submitted Jul 27, 2012|From forexblog.oanda.com|1 comment

The Draghi effect is trying to wear off. The market is saying to policy makers to “put money where your mouth is or we are not playing the upbeat card.” Yesterday, it was “risk” that got all the support after Draghi said that the ECB was ready to do ...

Submitted Jul 25, 2012|From forexblog.oanda.com

When sentiment has been so badly beaten up its easy to see why markets pounce on any potential shift in eurozone bailout script. Listening to the same record does not give us much inspiration. It seems that policy makers themselves believe that ...

Submitted Jul 24, 2012|From forexblog.oanda.com|3 comments

The latest dead cat bounce will leave the seventeen member currency under renewed threat. Already this morning the single currency had been riding another deflated crest once Moody’s decided to cut Germany’s rating outlook to negative from stable. ...

Submitted Jul 23, 2012|From forexblog.oanda.com

The Euro framework continues to cause jitters and the dollar is starting the week where it happily left off on Friday, in demand. For a multi nation currency, Euro policy makers seem intent to follow the path of least resistance and talk their ...

Submitted Jul 21, 2012|From forexblog.oanda.com

The Fed dominated this week, or at least it tried to until Friday’s EUR meltdown when Spanish yields imploded to the topside and the weakening Chinese Yuan put investors on the back foot. The markets had been monitoring helicopter Ben’s semi-annual ...

Submitted Jul 20, 2012|From forexblog.oanda.com

This is now officially very ugly. Spain revising growth targets, Valencia looking for a handout and Spanish 10′s making it near impossible to fund has tentative risk positions entered this week on the back foot allowing the dollar and yen to end the ...

Submitted Jul 20, 2012|From forexblog.oanda.com|2 comments

It’s been a long week with lack of opportunity for just reward unless you had been bullish AUD. The US drought has managed to push up grain prices, drag the CRB index through its 200DMA, therefore allowing the AUD to become the markets new darling. ...

Submitted Jul 19, 2012|From forexblog.oanda.com

Follow the yields, it is that that is providing the conviction for most EUR currency positions taken. Spain has again managed to garner most of the market attention this morning as their 10-year government bond yields hovered close to +7% danger ...

Submitted Jul 17, 2012|From currencythoughts.com|3 comments

Testifying before the Senate Banking Committee today, Fed Chairman Bernanke did not move closer to fresh stimulus than his position in previous public comments including last month’s post-FOMC press conference. Policymakers are prepared on a ...

Submitted Jul 17, 2012|From forexblog.oanda.com|9 comments

Is Helicopter Ben going to crash the party or perhaps become one of those non committal individuals that we are determined not to give up on? Capital markets will be monitoring his, and today’s, semiannual MPR to Congress for any strong indication ...