General volatility in the FX market has long been historically high, which is a clear sign of extreme uncertainty in the market about the way exchange rates are likely to be heading. Exchange rates are still showing sweeping fluctuations, so FX trading is much more risky than it used to… Read More …
| Tagged Forecast |
Deflation won’t happen here; at least not if Federal Reserve (Fed) Chairman’s Ben Bernanke’s plan pans out. Deflation is considered a persistent decline in prices of goods and services; in a speech in 2002, Bernanke outlined the steps he would take if the U.S. ever faced the threat of deflation…. Read More …
| Tagged Forecast |
Overall, the dollar strengthened overnight, especially against the euro and pound. The main reason behind the weakness of the two European currencies is that both the ECB and the BoE are expected to cut interest rates later this morning. The BoE is expected to cut by 100 basis points, down… Read More …
| Tagged Fundamental Outlook |
The Dollar and the yen traded little changed against major currencies on Wednesday, paring earlier gains after stocks staged a late rally on Wall Street. The euro and the Sterling came under pressure through most of the session ahead of interest rate decisions by Central Banks in the euro zone… Read More …
| Tagged Fundamental Outlook |
The report shows that third quarter Euro-area GDP contracted 0.2% for the second straight quarter. The released number was in-line with market expectations. Compared with the third quarter of 2007, the Euro-area GDP grew by 0.6%. Investments fell by 0.6% in the third quarter, while household consumption remained unchanged. Analyzing… Read More …
| Tagged Fundamental Outlook |
It is central bank night in FX as both the BoE and the ECB are expected to lower rates significantly later in the day.Ahead of the announcements by the two major central banks, the surprise -175bp rate cut by Sweden’s Riksbank sent risk currencies into a tailspin in early European… Read More …
| Tagged Fundamental Outlook |
U.K. November Halifax house prices fell more sharply than expected, down 2.6% m/m and 14.9% 3m y/y, far worse than the Reuters medians for -1.0% m/m and -14.2% 3m y/y and versus -2.2% and -13.7% respectively in October. Data highlight the dire state of the U.K. housing market. The intensification… Read More …
| Tagged Fundamental Outlook |
Risk aversion remains strong as doom and gloom rules the markets. The announced rate cuts by the BoE and ECB today only exacerbates the feeling that Central banks are increasingly helpless in the face of recession. Asian stocks decline slightly after a strong start to the trading session on Thursday…. Read More …
| Tagged Fundamental Outlook |
The euro declined against the dollar and the yen on speculation the European Central Bank will cut interest rates by half a percentage point and maybe 75 basis points today, reducing the appeal of assets denominated in the currency. The Sterling dropped to its lowest level in almost three weeks… Read More …
| Tagged Fundamental Outlook |
In November, house prices fell in the U.K. by 2.6% from one month earlier, while the same report showed house prices fell by 14.9% from one year earlier. The release number is much worse than analysts? had forecast, which called for a -1.0% read. The average price of a house… Read More …
| Tagged Fundamental Outlook |
