Economics plays a huge role in the foreign exchange market. I enjoy looking at economic trends and trying to see how it affects currencies and life in general. I will post my thoughts and observations here. I'm throwing macroeconomics, forex trading, pop culture, and everyday life into a pot and hopefully the final product are lessons that are easy for you to consume.
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Mark your calendars, ladies and gents! NFP Friday is just around the corner! Let's put the euro zone debt drama aside for a moment and shift our attention back to the U.S. labor market.… More…
These markets are no different from tweenage girls, I tell ya! They love gossip too! Yesterday, word got around that Italy might get a 600 billion EUR loan from the International Monetary Fund. Naturally, this sparked a broad risk rally and got the markets all riled up. But is there any truth to these rumors?… More…
After launching at least four currency interventions since September last year, is the Bank of Japan now thinking outside the box and looking for other ways to intervene in the markets? Here's why the BOJ might be considering stealth intervention from overseas.… More…
It seems that even though a whole year has passed, not much has changed in the euro zone. Here's a look at what happened late last year, and my take on what could happen this time around. … More…
Yen crosses can produce big, sharp moves and shower you with pips, but they can also chew you up and spit you out faster than you can say "Stopped out!" As such, you have to be extra careful when trading these cross currency pairs. There are three things in particular that you have to consider when trading yen crosses.… More…
European bond auctions have been hogging the spotlight lately, and not in a good way. With bond yields rising here and there, the idea of joint euro zone bonds has resurfaced as a potential savior for the region. But why, oh why, is Germany against this idea?… More…
Two days ago, a Greek government official was caught on the wires saying that Greece only has enough cash for the next 20 days. If they do not get funds, they will have to default and they won't be able to pay government salaries and pensions. … More…
When the term "safe haven" is brought up, the U.S. dollar, Japanese yen, Swiss franc, and gold are usually the first things to come to mind. But lately, one currency has been acting more and more like a safe haven, at least in Europe. Everyone, meet the British pound!… More…
We're nearing the end of 2011, but sadly, it looks like European officials aren't making any progress in finding a solution to the ongoing debt crisis. In fact, it seems that the tension is getting on everyone's nerves as officials are starting to play the blame game and point fingers at each other.… More…
It has been almost three weeks since the FOMC's interest rate decision yet investors, as well as traders, are still confused as ever about the committee's plan. It is for this particular reason that the upcoming meeting minutes will be watched very closely.… More…
Hearing EZ leaders bicker about how to address the debt crisis isn't new to us. Now Germany and France are at it again. What are they arguing about this time? The ECB.… More…
Japan has been notorious for intervening in the markets to weaken the yen. They did this back in October 31 when they pushed USD/JPY as high as 79.50. Unfortunately, it appears that their efforts are short-lived, as the pair has almost returned to its pre-intervention levels.… More…
In its latest interest rate decision the Bank of England voted to keep its asset purchases target steady at 275 billion GBP. Does this mean that the central bank is done stimulating the economy? Here are four reasons why the BOE might go for more QE.… More…
Not sure what to do with the Aussie? Well, here are 4 reasons why you might wanna consider taking a short bias on AUD/USD! … More…
Uh oh. It looks like President Obama is done playing good ol' Mr. Nice Guy to China. In a conference earlier this week, he told Chinese officials that the yuan is just moving TOO slow. Do I smell a trade war brewing?… More…
Remember when the S&P erroneously downgraded France's credit rating last Thursday? Yeah, the European Union hasn't forgotten either. In fact, the S&P's blunder might have been one of the reasons why the EU is now tightening its belt on the major credit rating agencies.… More…
After the infamous Silvio Berlusconi stepped down as Italy's Prime Minister, Mario Monti was tapped to lead the country as the new Prime Minister. Who is he, you ask? Read up and get the lowdown on Italy's real-life Super Mario!… More…
After days of worrying over the possibility of debt contagion in the euro zone, investors breathed a sigh of relief yesterday as Greek and Italian lawmakers stepped up their game in containing risk aversion. What exactly happened in Greece and Italy?… More…
The latest economic figures from China seem to suggest that the Asian giant is headed for a slowdown. If that happens, will we see a rate cut from the PBoC soon? What will the High Expectations Asian Father meme say? Read on to find out!… More…
Mama Mia! Even with Italian PM Berlusconi offering to say "Arrivederci!" earlier this week, Italian bond yields surged to their highest level during the euro era and caused a broad-based selloff in high-yielding assets. What gives?… More…
Remember remember the fifth of November... When the G20 leaders could've and should've done better. Excuse my Guy Fawkes reference, but it seems like the recent G20 summit turned out to be a huge disappointment. Read on to find out what happened.… More…
We could be in for a jam packed session soon as we've got a major release on the calendar! No, I'm not talking about Modern Warfare 3! I'm talking about the Bank of England interest rate decision! After last month's surprise, what could be in store for us this time around?… More…
If the euro zone debt problems are enough to give you headaches, then make sure you have a boatload of aspirin by your side before you read on. Aside from ballooning debts, another problem that has hit the region is the increasing political instability in Greece and Italy. … More…
Now that NFP Friday is done and over, it's time to go through the results and see what this could mean for the Fed moving forward! … More…
It looks like it didn't take long for Mario Draghi to settle in as the new President of the European Central Bank (ECB). In his first ECB rate statement as the central bank head, Draghi surprised the markets with an unexpected rate cut, the first the euro zone had seen in over 18 months. Talk about starting your term off with a bang!… More…
If you were expecting to be enlightened about the Fed's monetary policy stance but instead ended up even more confuzzled, then you are not alone! Many are still trying to decode the Fed's mixed signals and make sense of its recent FOMC statement.… More…
Just when the market players were enjoying a nice rally from the European leaders' announcement last week, Greece Prime Minister George Papandreou threw a curveball and called for a referendum on the new debt deal. What the heck is a referendum and how will it affect the euro?… More…
