Post Tagged with: "interest rate"

Forex Daily Outlook – April 27 2011

British GDP, inflation data in Europe and the historic press conference by Ben Bernanke which accompanies the decision about QE2 are the highlights of a very busy day. Let’s see what awaits us today.

In the US, Fed Governor Ben Bernanke is about deliver a press conferences regarding the US economy and USD Value.

Read the rest of the article Forex Daily Outlook – April 27 2011
USD/CAD Edges Up After Rate Decision

USD/CAD Edges Up After Rate Decision

As expected, the Bank of Canada left the Overnight Rate unchanged. This decision, that contained concerns about the strength of the Canadian dollar, was widely expected by the markets. USD/CAD is trading slightly higher, under the resistance line. The rate statement that was released with the rate decision, talks about inflationary pressures from commodity prices, [&hellip

AUD/USD – Too Good To Be True?

AUD/USD – Too Good To Be True?

AUD/USD closes the week at 1.0560, breaking every record, every resistance line and also gravity on the way. There are many good reasons for a stronger Aussie. Here’s a nice list of 5 major factors. There may be even more. But there are signs that the pair is running out of air. Will we see [&hellip

Trichet Is Less Hawkish – EUR/USD Falls

Trichet Is Less Hawkish – EUR/USD Falls

Jean-Claude Trichet talks about the rate decision and keeps the tension high. He is slightly less hawkish and doesn’t hint about future moves. Update. EUR/USD is now below the critical line, after very choppy trading. Wrap up The press conference has ended. All in all, Trichet hinted that no rate hike is coming in the [&hellip

The FX significance of higher ECB rates

The FX significance of higher ECB rates

Much has been made of the economic implications of today’s anticipated ECB interest rate increase, not least the fact that it’s likely to make matters worse for the periphery, rather than better.  Nevertheless, there are two reasons why at least in the short-term, it’s of significance for FX. Guest post by FXPro Firstly, the ECB [&hellip

Buy the Rumor, Sell the Fact? ECB Preview

Buy the Rumor, Sell the Fact? ECB Preview

EUR/USD enjoyed the implicit and explicit talks about a rate hike in the Euro-zone. But now, as the moment of truth has arrived, the outcome for the common currency could be very different. Here’s a preview for the ECB rate decision, with 5 scenarios. Rate Hike vs. Debt Crisis In the previous press conference that [&hellip

The worsening debt threat under the euro

The worsening debt threat under the euro

Of course, one of the more remarkable aspects of the past week has been the resilience of the euro in the face of the underlying developments of the sovereign debt crisis. This could well be repeated later today when Ireland publishes the results of the latest stress tests on its banking sector, where nationalisation of [&hellip

EUR/USD Continues Enjoying Trichet’s Hawkishness

EUR/USD Continues Enjoying Trichet’s Hawkishness

The president of the European Central Bank, Jean-Claude Trichet, continues have a strong and positive impact on the Euro. In another public appearance, Trichet reiterated his tough stance about inflation and continued to communicate a rate hike next week. This saved EUR/USD from losing support. Trichet spoke at his country, in Paris, and said inflation [&hellip

5 Arguments for the Dollar, and 5 Against It

5 Arguments for the Dollar, and 5 Against It

The roller coaster week ended badly for the US dollar, as the US Dollar Index closed at the lowest levels since December 2009, just under the previous low. Will it bounce back up from here, or is it a fast roll downhill from here? 5 arguments for the dollar, and 5 against it. Background The [&hellip

The risk of an ECB about turn

The risk of an ECB about turn

Quite a few parallels are being drawn between the current situation with food and energy prices and that being seen in 2008.  Food prices, looking in absolute but general terms (i.e. the Economist index) are now higher than was the case back then. Food price inflation isn’t as high, but is certainly moving up. Guest [&hellip