Daily Forex News

Major financial markets spent another week knocking around in seemingly impenetrable ranges, and FX was no exception. EUR/USD opened the week by testing the pivotal 1.3750 level, only to spend the rest of the week recovering higher, but importantly failed to sustain a break of 1.4000 on several occasions.

Worries about inflation have clearly gotten ahead of themselves. While we believe inflation is a monetary phenomenon over the long run, lags between stronger money growth and rising inflation are long and variable. The Fed still has plenty of time to drain the liquidity it provided in the aftermath of…

During the past week we have seen a correction to the recent trend in most financial markets: after rising for some time, we saw declines in equity prices, bond yields and commodity prices. Credit spreads have widened somewhat. A general decline in risk appetite set in. One interpretation is that…

With economic data continuing to support the case that the worst of the economic recession is in the rear-view mirror, attention has turned increasingly to the shape of recovery and lessons learned from the economic crisis. Perhaps one of the hardest lessons learned by investors and governments alike is that…

Many themes occupied the headlines last week, including BRIC summit and reserve diversification, SNB intervention, talk of global economic recovery. But after all, dollar was generally in range against most major currencies. Performance of the Japanese yen was indeed the most impressive as it rebounded over 3% against Canadian dollar…

The Fed will meet on June 23-24 to discuss about its monetary policy. Although economic outlook has improved as suggested by recent indicators, policymakers will likely keep interest rates unchanged at 0-0.25% for the rest the year. In light of recent speculations of earlier rate hike, we believe the Fed…