Submitted Mar 2, 2012|From forexblog.oanda.com|9 comments

EUR remains on the back foot as we round off the week and is likely to stay on the defensive after this week’s massive cash injection by the ECB. The take-up by 800 banks of just over half-a-trillion EUR’s of ‘cheap’ cash (LTRO), an alternative form ...

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

It is to be expected that FX price action would be rather subdued ahead of the second 3-year LTRO announcement tomorrow. It will be then, that the first squeeze will occur, either positive or negative. Thus far, investors are playing by the old ...

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

In this market, one should not put too much faith on a deal being signed, sealed and enjoyed by investors, despite knowing that anything is possible, look at Berlusconi! G20 came and went this past weekend. There were no surprises, no magic potions, ...

Submitted Feb 24, 2012|From forexblog.oanda.com|5 comments

The JPY tumbled to its lowest level since July 2011 against the USD and its lowest level since August 2008 against the EUR, as Japanese importers were reported to be selling the currency to buy U.S. dollars. Monetary easing from the Bank of Japan as ...

Submitted Feb 24, 2012|From forexblog.oanda.com|4 comments

The USD reached record lows against the EUR as the Greek bailout was finalized and crisis was if not adverted at least postponed. US Housing fell in January, but revisions to previous months’ data was better than originally reported. This weekend ...

Submitted Feb 23, 2012|From forexblog.oanda.com|2 comments

The European Union Economic and Monetary Commission released their 2012 forecasts for the 17-nation currency. The expectation is for the Eurozone to contract 0.3 percent. This is a revised forecast from their November figures of 0.5 percent growth ...

Submitted Feb 21, 2012|From forexblog.oanda.com|21 comments

After more than half a year of back-and-forth negotiations, with both sides guilty of brinksmanship bargaining, we learned Monday that a deal had finally been reached to provide Greece with a second emergency bailout. A total of 130 billion euros, ...

Submitted Feb 19, 2012|From forexblog.oanda.com|6 comments

The BoJ became the latest G8 central bank to ease policy this week. Governor Shirakawa and his policy makers announced a +Y10t increase in their asset-purchases and at the same time, formalized their inflation objective (an approach to fighting ...

Submitted Feb 18, 2012|From forexblog.oanda.com|1 comment

US data has done a stellar job this week. Above expectation prints have helped to sustain the EUR and other risk related currencies as the market heads towards the showdown in Brussels on Monday. Initial jobless claims last week beat expectations, ...

Submitted Feb 17, 2012|From forexblog.oanda.com|1 comment

In the past 24-hours, the market has seen an aggressive EUR reversal higher from support found at 1.2975. The move is allowing analysts to take dead aim on a stronger rebound, back above the 1.32 handle that we had briefly occupied earlier in the ...

Submitted Feb 16, 2012|From forexblog.oanda.com|3 comments

Owning the single currency is not making anyone wealthy at the moment, not even after China lent her mighty support to the beleaguered currency by teasing us with potential investment support yesterday. Chinese policy makers are waiting for the ...

Submitted Feb 15, 2012|From forexblog.oanda.com|1 comment

How many Hail Mary passes can one catch? Greece is running out of ideas and options whilst the rest of Europe is on the verge of letting the ship sail. Not the end of the EU, but one less member. China overnight has pledged her support for the ...

Submitted Feb 14, 2012|From forexblog.oanda.com|2 comments

In 24-hours the market has gone from buying into the ‘yet signed’ Greek austerity Troika imposed measures being passed, to a market again being slapped silly by another reactionary rating agency actions. The whipped lashed single currency has seen ...

Submitted Feb 13, 2012|From forexblog.oanda.com|1 comment

A survey released Friday by the Philadelphia Federal Reserve indicates a majority of the 45 economists invited to participate now believe U.S. unemployment will fall faster this year than previously expected. Those completing the study predict that ...

Submitted Feb 12, 2012|From forexblog.oanda.com

The BoJ is expected to keep its policy rate near zero and leave its asset buying program at Y55t at its two day meeting starting on Monday. Consensus has us believing that economic conditions from policy makers perspective has not changed. Unless ...

Submitted Feb 11, 2012|From forexblog.oanda.com

The loonie has finally broken out of that death grip range that we were beginning to become accustomed to midweek. At the time it seemed that everyone was afraid to do anything. However, once the risk adverse trading strategies again became in ...

Submitted Feb 10, 2012|From forexblog.oanda.com

Despite the EUR’s sell off in the final trading session of the week, the single currency has managed to regain some lost ground against most of the G10 and EM currencies. Analysts agree that the “policy process and the firewall thats been built ...

Submitted Feb 10, 2012|From forexblog.oanda.com|12 comments

Buy the rumor sell the fact, there was none of that. There was no euphoria when the austerity deal was finally struck on the Greek side. Global equities did happen to receive a small bid, fixed income yield remained rather flat, but that was it, no ...

Submitted Feb 9, 2012|From forexblog.oanda.com|14 comments

It was another night of ‘deal or no deal’ ahead of the ECB and BoE rate announcement this morning. Price action has been choppy, influenced mostly by a higher than expected Chinese CPI inflation print (+4.5%) and the fear that the Greek coalition ...

Submitted Feb 7, 2012|From forexblog.oanda.com

Market surprises seem to be coming in three’s this morning. EUR is still in demand and is beginning to encroach on price tipping points that has more than a few weaker shorts worried. Last night, the RBA stuck to its guns and kept rates unchanged at ...