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

Now that the uncertainty that comes with the constant threat of defeat of the previous minority government has been set aside for at least the next four to five years, the Canadian dollar is quickly establishing itself as a top choice for investors. ...

Submitted May 4, 2011|From forexblog.oanda.com|3 comments

Thank Medley, market rumors of a Euro-positive research report have dragged and supports a higher EUR ahead of tomorrows rate announcement. It’s believed that the group indicated that the ECB is comfortable with a stronger currency and is not too ...

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

Risk sensitive currencies are on the defensive this morning. The EUR is failing to retain its upward momentum as the market eyes option related levels below. The antipodean currencies are underperforming amongst the majors after the RBA disappointed ...

Submitted Apr 29, 2011|From forexblog.oanda.com

It was a trading week with the broad dollar sell-off finding few obstacles in the calendar. The absence of hawkish innovations from the FOMC has been taken by the market as an all-clear to add to bearish USD momentum and carry trades. It seems that ...

Submitted Apr 29, 2011|From forexblog.oanda.com

Price action has been subdued in both Asia and Europe with the Royal wedding dominating market coverage, at least until US data releases. This morning, Euro-zone inflation rose to a 30-month high for April (2.8% vs. 2.7%), further strengthening the ...

Submitted Apr 28, 2011|From forexblog.oanda.com

If you are looking for further evidence as to just how bleak the outlook is for Portugal, consider this – it costs more for Portugal to borrow for six months, than it does Germany for thirty years. Consider also that the yield spread between ...

Submitted Apr 28, 2011|From forexblog.oanda.com

The UK economy grew by 0.5 percent for the first quarter of 2011 according to the latest figures to be released by the Office for National Statistics. While not spectacular by any stretch of the imagination, the return to positive growth after six ...

Submitted Apr 28, 2011|From forexblog.oanda.com

The mighty dollar selloff continued in Asia, throughout Europe and is now back to the Americas, with a number of crosses recording new record highs. Why? Because Ben has told us so, by the Fed confirming that their monetary policy is to remain ‘very ...

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

The market is focused on what Ben is going to say, but they should be alert to the release of the forecasts which come first. The Fed’s projections of ‘central tendency’ for GDP, unemployment, and inflation will be released at the beginning of the ...

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

Dollar Weaker Ahead of FOMC Statement Posted by Scott Boyd at 4:28 pm UTC, 04/26/2011 The dollar continued its week-long slide against the euro just one day before the next Federal Open Market Committee statement and investors are strongly of the ...

Submitted Apr 26, 2011|From forexblog.oanda.com|7 comments

If we excluded all the noise of the illiquid, volatile holiday trading sessions, we are back to where we left the markets last week, with the dollar maintaining its downward spiral, despite Trichet verbal pro-buck comments. Again, this holiday ...

Submitted Apr 22, 2011|From forexblog.oanda.com

It was a compact volatile trading week with the dollar hemorrhaging against all of its G10 trading partners and that includes Japan. With rate divergence influencing trade positions, this dollar bear market potentially still has ways to go. Some of ...

Submitted Apr 21, 2011|From forexblog.oanda.com|1 comment

The pace of USD weakening has quickened in this holiday shortened trading week. With the Fed expected to be on hold for the remainder of the year, despite ECB hikes and the US budget again being a market concern, this dollar bear market potentially ...

Submitted Apr 20, 2011|From forexblog.oanda.com|1 comment

Risk appetite has been quick to rebound, hot on the heels of rising global equities, buoyed by stronger earnings and Euro data. A number of reasons have emerged in the O/N session that is fueling this appetite. First, the charge is being led by the ...

Submitted Apr 19, 2011|From forexblog.oanda.com

In truth, concerns about the risk of restructuring Greek debt is more immediate than the current US fiscal difficulties. The reality is that peripheral sovereign restructuring would be harmful for most Euro-zone bank balance sheets. Despite Germany ...

Submitted Apr 18, 2011|From forexblog.oanda.com

UK Growth Expected to Decline Posted by Scott Boyd at 10:43 am UTC, 04/18/2011 The British economy continues to wrangle with very weak growth even as consumers are being hammered by surging prices. The result is an inflation rate double the target ...

Submitted Apr 18, 2011|From forexblog.oanda.com

Until now it was easy, the market was trading FX on monetary policy. Nothing is that simple when you are dealing with a group of individual countries that created the EUR. In this holiday shortened week, Greece is resurfacing as a default risk. ...

Submitted Apr 15, 2011|From forexblog.oanda.com

This week the dollar had the ‘classic’ opportunity to rally aggressively. Global risk appetite has subsided, commodity currencies have softened and investors were willing to take profit. Instead, we have witnessed only a feeble attempt to rise. ...

Submitted Apr 15, 2011|From forexblog.oanda.com|1 comment

We are stuck in a range being thrown around by flows while the market digs deep to justify owning their positions. The dollar has had every opportunity to outperform this week with risk subsiding. Instead, with the Fed trailing in the tightening ...

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

During times of economic uncertainty, buying and holding U.S. dollar-denominated assets has long been the standard “flight to safety” many investors have relied upon for shelter from the storm. In recent years however, this trend is waning and ...