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

Given the markets lack of focus on fundamentals lately, the loonie by all accounts, for a growth sensitive currency is holding its own outright, but for how long? The Loonie has been riding on the coattails of a strong NFP report (+243k and +8.3%) ...

Submitted Feb 4, 2012|From forexblog.oanda.com|1 comment

Analysts’ employment expectations were blown out of the water on Friday. NFP produced a stellar report, creating +243k new jobs, pushing the unemployment rate down two ticks to +8.3%. Risk has been quickly applied and added to in the markets. The ...

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

Japan’s Finance Minister Azumi said that the government will take decisive currency steps if needed and that speculative moves in the currency market are increasing. He and his policy makers can breath a small ‘sigh-of-relief’ after NFP, the market ...

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

CHF continues to rise despite the EUR’s resilience. The SNB’s pledge to hold the CHF 1.20 cap will soon be tested. Since its inception last September it has worked, however, in the past few weeks’ market sentiment has changed dramatically. China ...

Submitted Feb 3, 2012|From forexblog.oanda.com|2 comments

It is no surprise that in this market investors do not want to ‘diddle in the middle.’ Its a sure fire recipe to losing more mula. All week, these currencies have never really threatened to break out of their own particular range with gusto. They ...

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

Since the early days of the Eurozone debt crisis, insiders have identified China and its $3.2 trillion in foreign reserves as a potential contributor to a Eurozone bailout fund. Today, Premier Wen Jiabao gave markets reason to believe this may yet ...

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

Speaking before the House Budget Committee in Washington today, Federal Reserve Chairman Ben Bernanke said that the U.S. economy appeared to be gaining in strength. “Fortunately, over the past few months, indicators of spending, production, and ...

Submitted Feb 2, 2012|From forexblog.oanda.com|1 comment

The biggest fear this morning was not a rumor that China may ease their RRR or the imminent possibility of Cbank intervention in yen, nope, it was Deutche banks forex outage (it seems to have come with their profit outage)! The worlds largest ...

Submitted Feb 1, 2012|From forexblog.oanda.com|4 comments

The world’s largest central banks continue to follow a low interest rate policy first implemented to deal with the 2008 recession. The argument for adopting the record-low rate was that deep cuts to the lending rate would help ensure sufficient ...

Submitted Feb 1, 2012|From forexblog.oanda.com|3 comments

The EUR again has failed to break out of its current range. When its on its knees, down and just about out, Chinese PMI lends a hand in the overnight session. The world’s second-biggest economy has withstood weaker exports driven by the Euro ...

Submitted Jan 31, 2012|From forexblog.oanda.com|26 comments

The EUR 1.32 handle was to be in the distant past. One Euro summit later, in tandem with month-end requirements, and we have a trading environment wishing to finally throw some volume about and a ‘lost’ currency finding some of its mojo again. The ...

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

Other regional data and policy innovation has mostly been positive for the Asian region this week. The Fed’s surprise extension of its commitment not to raise US rates for another 18-month’s, until late 2014, “should be the key to medium-term ...

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

“Key” surprises have ended up being the theme of this week. The Fed has extended the term of free money by 18-months and the door is now ajar for further QE. It’s the “when” that many appear to disagree with. It seems unlikely to be applied until ...

Submitted Jan 27, 2012|From forexblog.oanda.com

Plans for the Greek Private Sector Involvement remain a source of considerable uncertainty for peripheral markets, and the inconclusive result of negotiations over the past few days will leave the EUR and risk complex vulnerable to a large ...

Submitted Jan 26, 2012|From forexblog.oanda.com|1 comment

On Wednesday, the Office for National Statistics (ONS) revealed that the UK economy contracted by 0.2 percent for the final quarter of 2011. Economists had predicted a slight increase of 0.1 percent for the last three months of the year. Despite the ...

Submitted Jan 26, 2012|From forexblog.oanda.com|47 comments

The market sure did not see this one coming from the Fed. An “unambiguous and aggressive” statement from US policy makers is certainly laying the groundworks for QE3. With unemployment elevated and inflation subdued, Helicopter Ben can certainly put ...

Submitted Jan 25, 2012|From forexblog.oanda.com|2 comments

The single currency price action has us trading back and forth, with the lows getting higher and the sellers becoming a tad more aggressive at the top. Fundamental releases and Greek bond discussions have thus far failed to worry either the bull or ...

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

Weekend discussions between Greece and its private lenders did not result in agreement as many had anticipated. At the same time, it has not been able to derail global equities entirely. It seems that investors have shunned the safety of US ...

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

What ever happened to the Greek haircuts? Market perception saw it as a done deal, where further details were supposedly forthcoming over the past weekend. According to the IIF, negotiations are ongoing and elements of an unprecedented voluntary PSI ...

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

Can we shout “soft landing” loud enough? That is what Europe et al. are praying for from the “Red Rocket,” China. As their economy slows and key export partners struggle more than ever, the government must ensure a soft landing. The call must be ...