Oct 12, 2010

The dollar is showing subtle signs of strength for the first time in several months.  The latest speculation that the Federal Reserve may in fact hold off on further quantitative easing measures has caused high-beta currencies to sell off versus the dollar as traders take profits off the table after a multi-month bull run against the dollar. This is the first...

Oct 5, 2010

The Federal Reserve has kept interest rates at historically low levels since December of 2008, leaving its benchmark Fed Funds Rate steady at 0.25% since that time. Despite these low rates, the United States’ economy has shown few signs of improvement from such historically low rate levels. This may be due in part because the Fed Funds rate and the...

Sep 30, 2010

The dollar reversed overnight losses as better-than-expected Thursday US economic releases reduced the chance of further quantitative easing by the Federal Reserve. The Chicago PMI unexpectedly increased in September; initial jobless claims declined more than expected in the week ending September 25; and Q2 2010 GDP growth was revised modestly higher. The...

Sep 29, 2010

Today the USD index has hit an 8-month low, as the Euro contiues to rally, and gold consolidates the latest gains above $1300. The Euro is reported to be supported by Swiss banks, and Asian sovereigns, while the prospect of a further bout of easing continues to erode the confidence of USD bulls. We are unphased by the recent movements, however, since the...

Sep 28, 2010

The dollar fell versus most of its rivals on Tuesday as weak US economic data fueled speculation that the Federal Reserve will begin another round of quantitative easing. US bonds rose and gold reached a record high. Treasury’s $35 billion five-year note auction sold at a record low yield of 1.26%. The S&P gained 5.54 to 1,147.70. The euro climbed to...

Sep 28, 2010

Weekly Forex Update: GBP/USD The Euro continues to surge against the U.S. Dollar, and recently broke through the previous ceiling at 1.3334 (which was the high from August 6). This move has now solidified the bullishness that was confirmed when the EUR/USD traded through the 200 period simple moving average at 1.3198. The EUR/USD easily broke through the...