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

Early indications are that the Canadian dollar could decline ahead of tomorrow’s Bank of Canada interest rate announcement. Despite recording a 3.9 percent increase in Gross Domestic Product for the first three months of the year, most observers ...

Submitted May 27, 2011|From forexblog.oanda.com

The dollar has given up all of its hard earn gains and then some this week. Investors seem to be happy selling the ‘mighty buck’ on the back of weaker US data. The lack of a rally in US benchmark yields combined with ‘this’ weak dollar ‘implies a ...

Submitted May 27, 2011|From forexblog.oanda.com

So it seems. Some of us have been doing it so wrong for so long. The dollar has stopped dead in its tracks and done an aggressive about turn for a number of reasons. The aggressive session move is being attributed to a hedge fund selling the ...

Submitted May 26, 2011|From forexblog.oanda.com

Trichet reinforced his roles disclaimer this morning, noting that his ‘primary mandate is to maintain price stability’. The market acknowledges that they are ‘carefully monitoring’ the situation amid increased inflation risks and bow to the fact ...

Submitted May 25, 2011|From forexblog.oanda.com|2 comments

It’s a horror show, with market anxiety keeping risk assets defensive. We have politicians pitted against policy makers. The ECB is warning that restructuring is not a solution. If Greece fails to meet the term of it’s bailout, their debt will be ...

Submitted May 24, 2011|From forexblog.oanda.com

The summer of discontent and we thought the market was buying into the ‘stabilization’ theory. Investors have taken a breather in the overnight session, with most G10 pairs essentially trading flat or a touch stronger against the dollar, as global ...

Submitted May 20, 2011|From forexblog.oanda.com

Developments with respect to Greece remain a source of stress for the markets. How will Greece find the €27bn it needs to fill its 2012 ‘funding gap’? Restructure, reprofiling? The market is trying to shape word definitions rather that reshape a ...

Submitted May 20, 2011|From forexblog.oanda.com

The market seems to be waiting for a meaningful turn. A lack of new negative headlines on Greece is encouraging investors to buy back some of their risky assets, however, do not blink, you could miss the overnight price action. The dollar has ...

Submitted May 19, 2011|From forexblog.oanda.com|1 comment

Despite Japan entering a recession, Strauss-Kahn resigning, Trichet stating that the ECB would not be using Greek bonds as collateral should there be a decision to lengthen debt restructuring, we continue to see a consolidation phase after the heavy ...

Submitted May 18, 2011|From forexblog.oanda.com|2 comments

It’s not a market surprise that the Euro-finance meeting did not provide a definitive solution to Greece’s debt issue. However, consensus appears to be moving closer, albeit slowly, to the idea that some form of ‘voluntary’ restructuring of Greek ...

Submitted May 17, 2011|From forexblog.oanda.com|4 comments

It may be too much for most people to fully comprehend the size of the government’s $14.3 trillion debt, so let’s put this in terms each of us can understand – yesterday the United States maxed out all its credit cards. By law, the government is ...

Submitted May 16, 2011|From forexblog.oanda.com

It’s time to discuss. The reality, the market does not expect the Euro-finance ministers to make a final decision today on any Greek additional assistance. They will wait on the EU/IMF’s fourth mission to the region to complete its conclusions later ...

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

Uncertainty about additional aid and/or restructuring in Greece remains a key contributing factor to this week’s shakeout. Even the Chinese reserve ratio hike is weighing on risk sentiment. Current price action is indicating that the worst of the ...

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

The Euro-zone is growing nicely (+0.8%). The morning’s data should reinforce ECB tightening expectations and the markets’ comfort with Spain’s continued ability to decouple from the smaller periphery debt markets. The solid French and German reading ...

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

Euro policy makers are out in full force trying to talk down ‘restructuring’ Greece’s debt problems, their codeword for default, as investors again set their ‘crosshairs’ on the Euro-peripheries. According to Juncker, we should not be talking about ...

Submitted May 11, 2011|From forexblog.oanda.com|1 comment

Euro-zone debt concerns have in no way faded, but they are taking a back seat at the moment. Peripheral markets are bouncing back this morning amid a general relief rally, with Portugal debt trading leading the way. King’s hawkish comments about ...

Submitted May 10, 2011|From forexblog.oanda.com|1 comment

As expected, the Greek tragedy dominates the markets. It’s a long performance with no intermissions. The rumors of another Greek bailout package (EUR+60b), to come into force next month, is providing a ray of hope for risk investors. Credit markets ...

Submitted May 6, 2011|From forexblog.oanda.com

It was a week many would like to forget. A week of surreal price movements across all asset classes. The perfect storm of price movement, with investors exiting the one directional, inflation premium commodity trade with gusto, after the CME cost ...

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

Trichet said that the ECB ‘will continue to monitor all developments over the period ahead very closely.’ Maintaining this language in his communique this morning would indicate that the ECB will only hike again in July. A shift to ‘strong ...