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NO QE3: What are the Implications for the Dollar?
June 25, 2011The verdict is nearly in; there will be no QE3. The second round of quantitative easing (‘
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EUROZONE 1Q GDP HEADLINES THE ECONOMIC CALENDER
June 8, 2011The dollar fell to a one-month low below the Y80 level versus the yen in early morning trade with the Japanese currency bought on the back of heightened risk aversion reflecting falls in Asian share prices. The USD was also weighed down by remarks from Fed Chairman Ben Bernanke, the tone of which reinforced market [...]
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Dollar will Rally when QE2 Ends
April 27, 2011In shifting their focus to interest rates, forex traders have perhaps overlooked one very important monetary policy event: the conclusion of the Fed’s quantitative easing program. By the end of June, the Fed will have added $600 Billion (mostly in US Treasury Securities) to its reserves, and must decide how next to proceed. Naturally, everyone [...]
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Fed Mulls End to Easy Money
April 4, 2011Forex traders have very suddenly tilted their collective focus towards interest rate differentials. Given that the Dollar is once again in a state of free fall, it seems the consensus is that the Fed will be the last among the majors to hike rates. As I’
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Could We Really See QE 3?
February 28, 2011Focus returns to Ben Bernanke and Fed policy Focus is returning to Ben Bernanke and the Federal Reserve. Tomorrow, Bernanke is expected to provide testimony before Congress on monetary policy and his expectations for the economy. However, there are indications that QE 3 could be a very real possibility. Even with indications that economic recovery [...]
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EURO VULNERABLE ON SOVEREIGN DEBT RISK CONCERNS
November 16, 2010Rising US treasury yields and stronger than expected October retail sales data yesterday helped the dollar climb to a six-week high against a basket of currencies. Yesterday also saw the president of the Richmond Fed say that the Fed might need to tighten policy to avoid a surge in inflation. Adding to the increasing unease [...]
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Fed Set to Continue Easy Policy
November 2, 2010The Fed is expected to maintain an easy policy stance for a while, believes Kathy Lien, director of currency research at GFT. She shares her view on what the Fed should do, with Tai Hui, regional head of economic research, SE Asia at Standard Chartered Ba
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MARKETS AWAIT THE FED MEETING
August 10, 2010Overnight movement with Sterling following the weakest RICS Housing data release in a year added to the downward GBP momentum built yesterday as expectations of a dovish BOE coupled with the risk that too much QE is priced for the FED saw cable break 1.5840 support to touch 1.5773 Yesterday was a quiet session for [...]
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Fed Appears More Dovish on the Economy
June 24, 2010U.S. dollar finds some strength in forex trading on risk aversion Yesterday, the Fed issued its policy statement about the economy. Just a couple of months ago, the statement appeared almost optimistic, with the belief that the economy is more supportive of growth. However, things have changed in the last little while. With European debt [...]
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Will the Fed Soften Its Assessment of the Economy?
June 22, 2010Fed may soften some of its forecast factors for the U.S. economy The U.S. Federal Reserve Open Market Committee begins a two-day policy meeting today, and there is speculation about what will come out of it. While no change is really expected in terms of policy or rates, there is some speculation that some aspects [...]
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Forex Trading Forecast: When Will the Fed Hike Rates?
April 7, 2010Fed is likely to keep rates low for a while Yesterday, the Fed released the minutes of its March 16th meeting. These minutes showed that nearly everyone agreed that rates should remain low for an “extended period.” Today, Ben Bernanke is expected to give a speech on some of the challenges remaining to the economy. [...]
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Will Fed Strike Positive Tone on Jobs?
March 16, 2010U.S. dollar in forex trading today Cautious optimism appears to be the trend for today, as forex traders and other investors consider the possibilities for tomorrow’s Fed policy statement. The FOMC began its two day meeting today, and speculation is that a more positive tone could be coming. This comes as the U.S. stock market [...]
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U.S. Dollar: How to Trade Fed Meeting
March 16, 2010There are a few reasons why forex traders should be nervous today, but we believe that the rally in the U.S. dollar is a reflection of the market’
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Will the Fed Raise Rates By the End of the Year?
March 10, 2010Looking for Fed rate hike could be coming Will a better than expected nonfarm payrolls at the end of last week, and with the recent hike in the Fed discount rate, it looks as though things could be picking up for the economy, and the Fed is preparing to exit from stimulus measures.
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U.S. Dollar Gets Boost in Forex Trading from Fed Discount Rate Hike
February 19, 2010Currency trading with the greenback The U.S. dollar got quite the boost in overnight forex trading after the Federal Reserve announced that it is hiking the discount rate by 25 basis points. By now, things have calmed down a bit, with the euro stabilizing and taking back its losses, but the U.K. pound is still [...]
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Is The Fed Ready to Abandon Loose Monetary Policy?
January 28, 2010Interest rate hikes could come sooner than we think Interest rate hikes could come sooner than we think, especially if the plans laid out by President Barack Obama in last night’s State of the Union Address actually pan out. Obama offered a plan to increase employment by offering tax breaks to businesses, as well as [...]