Submitted Jun 23, 2012|From forexblog.oanda.com|7 comments

Twist 2 or Twist light? Investors had been warned that if the Fed failed to deliver, they should brace themselves for substantial fallout. They knew that QE3 signals from the FOMC would be much more important in moving risk that the euro-zone crisis ...

Submitted Jun 22, 2012|From forexblog.oanda.com|4 comments

Perhaps China could lead the way? Nope, data this week has not given risk lovers a “warm and fuzzy feeling.” China’s HSBC Flash PMI fell to a seven-month low of 48.1 in June from a final reading of 48.4 in May. The most frightening part, the new ...

Submitted Jun 22, 2012|From forexblog.oanda.com

Germany’s Merkel says we must fight for the Euro. Was she referring to the Euro championship? This week has all been about Spain, both on the pitch and in banking circles. Independent audit reports presented their worst and it was better than the ...

Submitted Jun 21, 2012|From forexblog.oanda.com|1 comment

Where is the love? The Fed and China are disappointing risk lovers this morning. The eternal optimists expected more, the cynic and the most jaded of traders continue to sit on their outright short EUR position, waiting for systemic risk to kick in. ...

Submitted Jun 20, 2012|From forexblog.oanda.com|4 comments

It’s that time again, the Fed to the rescue or not? Helicopter Ben and his buddies will either make a few happy or disappoint and make many happy. The net dollar longs have had a tough battle so far this week. Weaker US economic data coupled with ...

Submitted Jun 19, 2012|From forexblog.oanda.com|1 comment

Last weekend’s Greek election has done little to comfort investors despite a victory from the pro-bailout parties who have appeared to have averted a messy exit from the single currency. Investors faith could not even last until lunch time, similar ...

Submitted Jun 18, 2012|From forexblog.oanda.com|6 comments

The Greek results were supposed to provide some breathing space, a temporary piece of mind at least. Instead, dealers now finds themselves believing that it would have been easier to trade a Syriza win in Greece. That result would have been the nod ...

Submitted Jun 16, 2012|From forexblog.oanda.com|4 comments

The turmoil in the Euro-zone is nearing fever pitch. Europe’s escalating debt crisis is emerging as a top concern for both Governor Carney at the BoC and the Fed. Thrown in data showing that the euro-zone and US economies are slowing, which means ...

Submitted Jun 15, 2012|From forexblog.oanda.com|5 comments

Global policy makers are setting the groundwork for some sort of coordinated intervention if need be. Anyone and everyone who has direct domestic policy influence have been standing on their soapbox as the market sounds off the remaining few hours ...

Submitted Jun 14, 2012|From forexblog.oanda.com

There is little love for Spain this morning. Even having the reigning European and World cup holders has not prevented the beleaguered nation from escaping a Moody’s credit rating downgrade. Late yesterday, they downgraded the country by three ...

Submitted Jun 13, 2012|From forexblog.oanda.com|5 comments

No battle has been won, but, this market is looking to believe in something. There are many who think that the ECB is still needed to quell fears of contagion from the sovereign debt crisis. More so than ever, now that every FX trader has become a ...

Submitted Jun 12, 2012|From forexblog.oanda.com|4 comments

It was important that you did not close your eyes, otherwise you would have missed that Spanish relief rally. The lack of market conviction has investors believing that another Euro-zone member will eventually be seeking a handout. Despite their ...

Submitted Jun 11, 2012|From forexblog.oanda.com|6 comments

Capital market risk is allowed now that the Spanish get their money to prop up their ailing financial system. They are adamant that it is ‘not’ a rescue, it’s a credit line. If you are Irish, it seems that you got ‘royally stuffed’ twice this past ...

Submitted Jun 8, 2012|From forexblog.oanda.com|2 comments

Without having to live up to his nickname, helicopter Ben, single handily was able to trump the Chinese yesterday. Choosing not to give any guidance about Fed policy has again rocked capital markets. For the latter part of this week they had been ...

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

Who of note is brave enough to land that first punch? No disrespect to the Aussies. It seems that global policymakers are about to be engulfed by world events again. Will they be sinful of taking a reactive rather than a proactive stance when its ...

Submitted Jun 6, 2012|From forexblog.oanda.com

The bids keep coming so far this morning, mostly a hang over from a better than expected US non-manufacturing ISM yesterday. This even despite Moody’s cutting the credit ratings for several Austrian and German banks while citing the usual ...

Submitted May 31, 2012|From forexblog.oanda.com|1 comment

The EUR is riding the luck of the Irish early this morning. It has met little resistance in it’s first meaningful rally in a while. Even Euro equities have managed to trim their biggest monthly drop in nearly a year yesterday, as polls showed ...

Submitted May 30, 2012|From forexblog.oanda.com|9 comments

This EUR negativity is relentless. The existence of the single unit, is being broken down one big figure at a time. This currency is no longer immune to the sovereign debt problem as it has been for the past 24-months. The single unit’s value is ...

Submitted May 29, 2012|From forexblog.oanda.com|3 comments

We are back to action this morning and it seems we have missed nothing. This market has had very little to go on so far this week, action has been mostly fueled by rumor and hearsay. Certainly a good enough reason for a market squeeze to ...

Submitted May 28, 2012|From forexblog.oanda.com

It all about polls and positioning that has created this EUR weak bid during this illiquid holiday Monday. Constructive opinion polls from Ireland and Greece has sparked a relief rally in risk in the overnight session. A number of fresh Greek polls ...