Submitted Oct 17, 2011|From forexblog.oanda.com

A reality or a warning? This morning’s verbal damage comes from the German Finance Minister. Wolfgang Schaeuble views have caused the EUR to trade lower, with profit taking selling beginning to shape a sharp pullback. He insists that that this weeks ...

Submitted Oct 14, 2011|From forexblog.oanda.com

Friday’s strong North American data is providing the backdrop for a more supportive risk environment. But, its the G20 meeting that brings hope and optimism to resolving the Euro-zone crisis. Let’s hope investors will be full of the same optimism ...

Submitted Oct 14, 2011|From forexblog.oanda.com|1 comment

Following last week’s credit rating downgrade by Fitch Ratings, Standard & Poor’s announced earlier today that it too, was reducing Spain’s rating to AA-. The rating downgrade confirms that while the spotlight more often than not has been trained on ...

Submitted Oct 14, 2011|From forexblog.oanda.com

There are no risk heroics as the market seems to want to take a breather into the G-20 meetings on the weekend. One gets the feeling of pent up underlying risk demand, but everything remains orderly ahead of the Italian confidence vote being tabled ...

Submitted Oct 13, 2011|From forexblog.oanda.com

Prior to the last recession, there was a sharp increase in exchange rate volatility. Fast forward three years and, once again, we are witness to another obvious uptick in currency price instability. This time around, factors such as the Eurozone ...

Submitted Oct 13, 2011|From forexblog.oanda.com

Just cause its a roadmap for ‘stability and growth’ does not get us to the promised land. It’s only natural to want to take the foot off the gas, take a breather and access the risk reward of any move. Recent European policy statements and better ...

Submitted Oct 12, 2011|From forexblog.oanda.com

Slovakia will hold a “do-over” vote later this week where it is expected to now vote in favor of a scheme to address the escalating Eurozone debt crisis. The Slovakian Parliament earlier rejected the proposal and was the lone holdout of the 17 ...

Submitted Oct 12, 2011|From forexblog.oanda.com

This is not a result for Euro 2012, but the final round, now first leg vote, to ratify the amended EFSF program, from the only country in the 17-nations that uses the currency that has yet to vote ‘yes’. An unanimous ‘yes’ vote by all member states ...

Submitted Oct 7, 2011|From forexblog.oanda.com|2 comments

So much for Central Banker optimism. Bank of England governor Mervyn King made clear his frustrations in comments today after it was announced that the Bank of England would expand its quantitative easing program. Over the next few months, the Bank ...

Submitted Oct 7, 2011|From forexblog.oanda.com

Another week not for the faint hearted. Bernanke was to blame for instigating ‘Turnaround Tuesday’. In his congressional testimony he was prudently efficient and forthright and not overtly cheerful about the state of the US economy. His dour ...

Submitted Oct 7, 2011|From forexblog.oanda.com|8 comments

This week, the market has had the credit crunch talk, the recapitalization debate and Trichet’s signing off with his future infamous phrase, “we are in a global crisis”. The week is nearly finished, just one more release of significance and it ...

Submitted Oct 6, 2011|From forexblog.oanda.com|3 comments

Higher than expected Euro inflation numbers last week should prevent, the departing Trichet from overseeing an ECB rate cut this morning. The market expects policy makers to extend the provision of the unlimited, fixed-rate funding timeframe into ...

Submitted Oct 5, 2011|From forexblog.oanda.com|1 comment

Currency markets responded immediately to Bernanke’s remarks with investors taking the view that further easing was now probable. The potential that another round of stimulus spending could weaken the dollar helped the euro reverse its slide against ...

Submitted Oct 5, 2011|From forexblog.oanda.com

Was it the Plunge Protection Team (PPT) or an FT article that discussed coordinated Euro-zone measures to inject capital into European Banks that pushed North American bourses to rally in the final hour yesterday? Talks on coordinated action is not ...

Submitted Oct 4, 2011|From forexblog.oanda.com|4 comments

The market is getting the feeling that Euro finance ministers are stalling as they move as stealthy as a bull in a china shop in taking control of this crisis. They are beginning to drop hints that bondholders or PSI may be saddled with bigger ...

Submitted Oct 3, 2011|From forexblog.oanda.com

Speculation that the European Central Bank will be forced to slash interest rates has intensified in light of the most recent manufacturing data. The Markit Purchasing Manager’s Index (PMI) shows that for the second straight month, manufacturing in ...

Submitted Oct 3, 2011|From forexblog.oanda.com|1 comment

This week’s highlight obviously will be Friday’s employment situation report. Before then, traders will get their chances to tweak their forecasts with ADP employment on Wednesday and jobless claims Thursday. Current estimates puts the print just ...

Submitted Sep 30, 2011|From forexblog.oanda.com

The week is ending with the pendulum swinging back in favor of risk reduction. The catalysts for the deterioration in risk is as difficult to specify as they were for the risk rally earlier in the week. Despite the toing and froing of austerity ...

Submitted Sep 30, 2011|From forexblog.oanda.com

The market is trying to get through month and quarter end without giving up too much. Some price action is unexplainable others justifiable, but whatever, liquidity and pricing remains an issue. Data already this morning has investors reconsidering ...

Submitted Sep 29, 2011|From forexblog.oanda.com|1 comment

Publically, Eurozone officials continue to pledge their full support for Greece and refuse to acknowledge the possibility that Greece may never be in a position to repay its debt obligations. Private conversations, however, likely take on a much ...