UK, EU Rates Headed Downwards

As investors gradually re-acquaint themselves with risk-taking, the interest rate story is once again dominating forex markets. For the last few weeks, this meant that investors were taking advantage of record-low US interest rates to fund carry trades in riskier currencies. Most recently, however, investors have begun [more...]

Date: 2009-01-09 06:20:26

Blog posts (24) | Videos (13)
 

Why the Resistance?

Like its American regulator counterparts, the European Commission has been pushing major banks to form a CDS clearinghouse ... of EU-based trades must be done inside the 27-nation bloc.”  Perhaps.  But perhaps this is a pretext ... to interest rate and currency swaps), but I’m not fully–or even largely–convinced that this is the case [more...]

Date: 2009-01-08 02:11:21

Big Producers Demand Big Share of Shrunken Bonus Pie

Reap what you sow. Over the last 20 years, the ever-aggressive Wall Street culture has moved even further towards prizing, and paying for, ... losses, a small group of Wall Street traders on commodities, currencies and interest-rate trading desks have made huge profits for the banks that employ them. That is setting up a scramble as traders [more...]

Date: 2008-11-19 04:33:16

Government Will Not Target Sterling: UK

LONDON — The government will not set a target rate for the pound, and is instead focused on targeting inflation, ... has slashed interest rates, which are a major influence on currency trading, to two percent, the lowest level ... all kinds of problems," she added. In September 1992, international currency speculators forced [more...]

Date: 2008-12-14 14:38:30

U.S. Dollar Bulls Still Right, Here's Why

Those bullish on the US Dollar continue to be correct. Let's take a look at the recent news, then a few charts ... about "upside risks". "We had examined two options, one letting interest rates unchanged ... of Currency Research, GFT Forex Click Here To Play Video Borris Schlossberg: "Market is starting [more...]

Date: 2008-10-02 20:05:03

REFILE-GLOBAL MARKETS-Stocks up for 3rd day, yen dips

Asian stocks rose for a third day on Thursday, boosted by the prospect of more growth-supportive policies globally following interest rate cuts by ... . This has boosted currencies such as the Australian dollar and the South Korean won. Credit availability ... Reserve cut its benchmark rate to 1 percent on Wednesday to the lowest since June 2004, to [more...]

Date: 2008-10-30 05:47:27

Sarkozy, Merkel, Blair call for new global order

Sarkozy, Merkel, Blair call for new global order January 09, 2009 By: Freedom Fighter ... of us is managing his currency, his interest rates.” The leaders of France and Germany have differed ... or trade balance — as problems upsetting the global economy. A Congressional Budget Office report [more...]

Date: 2009-01-11 06:13:05

Dollar is Ravaged as Fed Goes to Zero Interest Rates

The dollar has been thrown to the wolves by the Federal Reserve’s decision Tuesday to slash its benchmark short-term interest rate to as low ... . The European Central Bank’s benchmark rate is at 2.5%. Canada’s is at 1.5%. Even Japan’s, at 0.3 ... research at GFT Forex in New York. OK. But a currency’s value also is supposed to be a function [more...]

Date: 2008-12-18 04:36:31

The Greatest Depression

The Greatest Depression Gordon G. Chang - 01.05.2009 - 2:09 PM “Let’s not mince words: ... .  Interest rates could rise as the Treasury tries to sell the debt, and higher interest rates will slow– ... then adopted, such as driving down the value of their currency, also had the effect of closing off [more...]

Date: 2009-01-05 19:09:54

Stiff Upper Lips and Large Rate Cuts

The positive reaction by the U.K. pound in relation to the euro, after both central banks reduced interest rates overnight, suggests a different outlook among foreign exchange investors. Among the major forex markets ... more,” says Ulrich Leuchtmann, head of forex research at Commerzbank in Frankfurt, Germany [more...]

Date: 2008-11-06 15:51:31

Saved by Zero

Before long, more than one nation’s financial system could be looking at the zero effect ... up seeing is the inevitability of zero interest rates,” says Kathy Lien, director of currency research [more...]

Date: 2008-11-28 09:02:00

AIG’s Financial Products Division

I’m fascinated by this huge article in the Washington Post called The Beautiful Machine ... up cash, get rid of debt and guard against rising interest rates or currency fluctuations [more...]

Date: 2008-12-30 00:59:09

Forecast for 2009 — Currencies, Oil, Interest Rates

My last forecast (for the year 2008) missed the real world market action significantly. The financial crisis made a lot of the forecasts made by the analysts and traders useless ... to 2%. Bank of England — ~1%. Bank of Japan — ~0.5%. Posted on Forex blog. Trade with a leading [more...]

Date: 2009-01-04 15:00:37

Dollar soars against euro

By Julianne Pepitone CNNMoney.com contributing writer NEW YORK (CNNMoney.com) — The dollar rose sharply against major currencies Monday ahead of anticipated interest rate cuts ... , the dollar was up 2.08 percent against the 15-nation euro, which was trading at $1.3617 [more...]

Date: 2009-01-05 15:11:56

Currency Swapping: Hotter Than Wife Swapping?

OK, so the post title is idiotic (but catchy!) I can explain the former, though the latter is beyond the scope of this blog's coverage ... for a foreign currency at the prevailing exchange rate to help tide over its current FX funding needs. At an agreed date, the process is reversed, with the future exchange rate determined by the interest [more...]

Date: 2008-10-30 10:56:00

Fed Preparing For Another Interest Rate Cut

With inflation concerns now being trumped by the fear of deflation, and the economy still struggling, ... Fund futures are pricing in a tiny chance of a 75bp rate cut next month. The housing market ... currency pairs have been consolidating since the middle of last week and the FOMC minutes could [more...]

Date: 2008-11-20 16:38:19

Commodities and currencies should continue mixed and sidelined

Overview Turmoil in the credit markets and the ECB adds to woes by suggesting it will raise its key rate by 25 basis points at July’s meeting. Euribor interest rate futures promptly dropped 25 points, with the December 2008 contract pricing three-month Libor at 5.525%, dragging Sterling, Swiss and US money market contracts down too [more...]

Date: 2008-06-12 06:52:54

The Hollow Men

British financial historian Niall Ferguson recently coined the term “Chimerica” to describe the growing economic interdependence between the United ... was then invested in the U.S., which kept interest rates in the U.S. low and provided easy credit ... American excesses and Chinese suppression. China kept its currency at artificially low levels in search [more...]

Date: 2009-01-02 00:51:42

Get-Well Card from Central Banks Doesn't Cure the Underlying Ailment; Forex Remains Volatile (pfblogs.org)

Today’s coordinated cut in interest rates warmed the cockles of investors’ hearts as though they’d received a personal eCard from the world’s bankers, ... ;P futures reversed a 33-point gain before falling back in to the red once more in pre-market trading ... from six central banks. Since our last report, currency traders have increased demand for dollars [more...]

Date: 2008-10-08 17:38:56

With Retirement Income Investment Your Money Doesn’t Retire

One of the milestones in an individual’s life is retirement ... with your needs, inflation, currency fluctuations and other factors that could affect the value of money ... set of interest rates when the CD’s reach their maturity dates. These CD’s commonly mature in pre [more...]

Date: 2009-01-10 08:53:25

The U.S. Dollar: A Federal Reserve Thingy

by The Mogambo Guru The front of a recent issue of Barron's asks, "Are Treasury Bonds Safe? ... are perfectly safe because a fiat currency and a lapdog Federal Reserve means that they can print ... , was actually right! Hahaha! In fact, consumer price inflation is higher than interest rates - even [more...]

Date: 2009-01-07 21:29:29

Learn Forex Even When You’re Afraid Of Math

Causes To Learn Forex When abroad, you have to exchange your currency to the local currency of the country you are in ... speculation, buying, or selling. Does Forex Need Math? Analysis makes forex work. Tools, basic and technical analysis, tidal movements, trade set-ups, and interest rates are a few things [more...]

Date: 2009-01-07 19:55:25

FOREX-Yen buoyed by risk reversal, euro on defensive (Reuters via Yahoo! Malaysia News)

SYDNEY, Jan 12 (Reuters) - The Japanese yen climbed across the board on Monday as a grim global outlook favoured safe-haven currencies, while the euro stayed on the defensive on talk of an aggressive cut in eurozone interest rates later this week. Link to the original site [more...]

Date: 2009-01-12 07:17:25

Interest Rate Risk Exposure

Interest rate exposure refers to the interest rate differential between the two countries' currencies in a foreign exchange contract ... conditions:* 2 pips spread on six currency pairs.* Providing online trading services without maintenance ... or futures contract. As a side note, arbitragers are investors that take advantage when interest [more...]

Date: 2009-01-06 19:58:00

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