Post Tagged with: "greenback"
US Primaries Season and the Dollar
The United States entered an election year. I’ll try to keep the debate focused on the impact on the economy and the dollar, without diving too deep into American politics. The question for the dollar is the level of uncertainty. If the picture will clear up, this will help the dollar, while high uncertainty will
American Reverse Decoupling
The US managed to continue growing throughout 2011 while the rest of the world slowed down. The 2008 financial crisis gave birth to the “decoupling” theory where China continued growing rapidly while the West was sinking. Indeed, while China and other Asian countries were slowing down during the end of 2011, and while Europe most
The dancing dollar
No one ought to be surprised by yesterday’s commanding performance by the world’s major reserve currency. With most of Europe falling into recession and some of Asia’s major economies losing momentum rapidly, it is little wonder that investors and traders are turning back towards the dollar at a time when the American economy is actually
Will Bernanke Raise Forecasts? FOMC Preview
The Federal Reserve took action in the past two meetings, pledging low rates and announcing “Operation Twist. It is likely to take a break now, as conditions improve. For the first time since June, the statement will be followed by a press conference by Ben Bernanke. A lack of big announcements in the statement can
Times of Correction
Corrections don’t always happen out of the blue. Sometimes it is related to different times in the day, week, month or quarter. Being aware of these corrections can help you trade. The beginnings of trading sessions tend to see sharper moves. This is best seen in the beginning of the European / London session. In
Bernanke Announces $400 Billion Twist – Dollar Rises
The Federal Reserve announced Operation Twist at a scale of $400 billion by the end of June 2012. This means no additional dollar printing – no QE3. They also fell short from announcing more measures such as lower rates on excessive rates. The initial reaction is a stronger dollar. EUR/USD is down but slightly rebounds.
7 Scenarios for FOMC: Many Measures are Needed for the Dollar to Fall
Ben Bernanke and his colleagues will be discussing a wide range of monetary stimulus options. Quite a few options are on the agenda, as the Federal Reserve is urged to do something to kick start the economy. QE3 is low on the list. The statement published on Wednesday, 18:15 GMT will be closely watched and will likely
The world listens but in disbelief
Stocks and also the single currency are firmer on the back of the warm words from Merkel and Sarkozy yesterday in the wake of their conference call with Greece. Whilst they are “convinced” Greece will stay in the euro area, markets are totally unconvinced that Greece will avoid default, with Greek CDS having nearly “maxed
Currencies Reaction to S&P Downgrade – Initial Gaps Closed
Forex markets opened with strong moves in the wake of S&P’s historic downgrade of the US. Some currencies jumped with Sunday gaps. Some currencies gained against the dollar, while other lost ground – the moves were exactly as expected. We already got one meaningful verbal intervention, and another one is still to be seen. In
Rumor Confirmed: S&P Downgraded US Credit Rating After Markets Close
Updated: The rumor that was running in the markets that credit rating agency S&P is set to downgrade the US and strip it from the perfect AAA rating i confirmed. The US now has a rating of AA+ according to Standard & Poor’s. The outlook is negative. This will have implications on the greenback. Before the