The global picture is dominated by the significant slowdown of the US economy and the financial crisis. A continued rise in oil and food prices is adding to the economic woes globally, although commodity exporters are benefitting. The US is set to experience a significant slowdown in the first half… Read More …
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Dollar weakness hit a new extreme in the first quarter of 2008 as the greenback fell within an arm’s reach of 1.60 against the Euro and 95 against the Japanese Yen. Interest rate cuts by the Federal Reserve have turned the US dollar into the second lowest yielding currency in… Read More …
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In the first quarter of 2008, the Japanese yen rocketed higher against the greenback to hit nearly 13-year highs. In doing so, the USD/JPY pair dropped below the psychologically critical 100 barrier to a low of 95.71 without even a hint of FX intervention by the Bank of Japan. Yen… Read More …
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An extended downturn in the British pound in the first quarter of 2008 has been a reflection of the deteriorating fundamentals underlying the struggling currency. Although the sterling plunged to new lows against most of the other majors, the move was far more tempered than the sharp decline that we… Read More …
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The Swiss Franc outperformed all other G10 currencies against the US dollar in the first quarter of this year, gaining nearly the 15% on the troubled Greenback. By comparison, the Euro gained just over 9%. This remarkable rally was driven by a broad-based flight to quality away from risk and… Read More …
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After five years of rapid appreciation, the Canadian dollar seems to be losing its charm. In the first quarter of 2008, despite the rise of crude oil to more than 110 U.S. dollars per barrel, the loonie depreciated dramatically against the world’s most heavily traded currencies on evidence that the… Read More …
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The Australian dollar was once again one of the top performing currencies in the first quarter of 2008, as high domestic interest rates and surging global commodity prices boosted demand for the currency. Indeed, the Aussie reversed previously sizeable declines – setting a significant base at $0.8511 before rallying nearly… Read More …
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The New Zealand Dollar started the year strong rallying for nearly 800 points in unison with global equity markets, but the price action stalled at the 0.8200 level, as risk aversion and fears of a global economic slowdown put a lid on any further progress. Record commodity prices and aggressive… Read More …
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With the U.S. continuing to show signs of edging closer to a recession, there have been numerous questions and countless speculation as to how bad things might get. We believe our current forecast for the U.S. economy draws a proper balance between both upside and downside risks. As our forecasts… Read More …
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The first quarter of the year in the FX market was characterised by an all-pervading high volatility. None of the established currencies escaped. With no exception, they were forced to give in to massive price swings. The financial turmoil from last year continues unabated in the new year. Risk appetite… Read More …
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