Forex Gump

With the Jackson Hole meeting only a few days away, market players are casting their votes on what Big Ben Bernanke has to say. Will the Fed announce new plans, or has it drawn the line at promising low interest rates?

It’s no secret that the Swissy has been moving up the charts with so much swagger like Mick Jagger. Hotshots at the SNB have also made sure that it’s also no secret that they aren’t happy with the currency’s strength. But what can they do about it?

The market has been very crazy the past two weeks: gold rallied for the first time above $1,800, S&P plummeted to 1,131 to mark a new year-to-date low, and EUR/USD traded wildly within a huge 400-pip range.

Just when we thought we’ve already heard enough bad news about the global economy, BAM! The U.K. steps into the spotlight with its roster of disappointing economic reports. Is it under the threat of falling back into recession, too?

Two days ago, the pound was able to stage a huge rally against the dollar due to better-than-expected inflation figures. Inflation, which is measured by the consumer price index, rose to 4.4% in July. The rate was both higher than forecast and the previous month.

It’s that time of the month again folks! No, Huck isn’t in her “Leave me alone or I kill you mode.” I’m talking about the U.K. Retail Sales report coming out tomorrow! For all you news traders out there, this could be your chance to bag some nice pips this week.

Call me crazy, but is it time to start hoarding up Greenbacks? Here’s one old man’s view on why we should consider buying the dollar.

It has been quite a while since we’ve heard about the debt problems of Europe. With the European Central Bank’s (ECB) highly successful Italian and Spanish bond auctions and the European equities market recuperating some of its losses last week, it seems that debt contagion fears are now a thing of the past.

Could it be? I’m scared to say the big R-word because it just might happen! Just check out this neat infographic comparing the 2008 market conditions to the present.

With high-yielding currencies gaining momentum and the favorite safe haven assets paring their gains, it looks like risk appetite picked up in markets yesterday. But was that really the case, or are we just missing a few points?