Forex Gump

The term ‘recession’ is a lot in vogue these days and we have all heard of a similar term called ‘depression’. In the context of economics, both sound similar, but there is a difference between the two.

So whats the big deal about Central Banks and just why should I pay attention to it if I want to trade currencies? Pay attention boys and girls…Piponomics is now in session!

We have all probably heard of the oil shock, but what is this consumption shock? The US economy was impacted by an oil shock, when OPEC increased oil prices in the 70s. OPEC’s move led to oil prices going up nearly four times, a move that slowed the wheels of the economy.

The US economy seems to have reached a critical point where recession may be accompanied by inflation, a situation that is extremely difficult for the Fed to manage.

What is a credit crunch? No it’s not a tasty candy bar — but it’s something you should really sink your teeth into!

We are all aware of the sub prime lending led real estate crisis that the US is currently going through. But what has this got to do with the value of the dollar, which seems to have displayed persisting weakness for sometime now?

The US dollar has for many years been the standard by which the other currencies have been measured – it still is; however in the last 6 years, it’s been trending steadily downward – losing as much as 21% of its value against the euro.

Uh oh. You’ve probably been reading the news lately and notice that the US dollar is getting killed. This sounds bad but is it? Well, yes and no. The best answer is

In less than two hours, we have the big market event everyone has been waiting on for several weeks now – the FOMC Interest Rate decision. I thought I would pass on a few thoughts ahead of the decision and potential currency movements based on the possible outcomes.

With the Bank of England’s decision to hold off on any rate changes, we have seen the last round of interest rate decisions out of the way for the week. I thought I would do a quick recap of the interest rate surprises and forecasts for the major currencies.