Market News

Three drivers of yesterday’s big sell-off and we are back to that again. Another non-farm payroll report is due out on Friday. It seems every month we keep hearing that “this is the biggie”, i.e. it will make or break markets and recovery expectations. Maybe this time there will be a lot of truth in that assessment …

Yesterday, we saw just how huge of an effect China has, not only on the global economy, but on the forex market as well. If you’re at a loss as to what I’m talking about, take a look at your charts. You’d see that most of the major currencies, particularly the Aussie, took a massive hit and gave away triple-digit pips to the dollar and the yen in just a single day. Lemme tell you why!

Is risk aversion the name of the game? After all, the yen, dollar and franc all came out on top yesterday! Read up on what happened by checking out today’s roundup!

Typically when Goldilocks emerges from her bunker, sees her shadow, and returns to the bunker, we can expect six more weeks of recession. But I’d suggest she re-stock her canned foods supply – she could be in there a while.

Japan takes center stage on Wednesday as they release the results of their quarterly Tankan survey. What kind of results will we see and how could these affect the Japanese yen?

Yawn… Most major currencies seemed to be on snooze mode yesterday, judging from the sluggish price action. Are there any reports that could jolt them back to life today? Read my roundup to find out!

You may remember that the US dollar soared in value in the midst of the worst fears during the credit crunch. It peaked in March of 2009; which not coincidently is when global stock markets and risk assets began to soar in value.

Too busy watching Germany beat England yesterday to catch up on those G20 talks? Don’t worry, lemme break those talks down for you and point out what you missed out on.

And so, England exits the World Cup… I can’t say the same for their currency though, as it was able to stage a magnificent rally last week! If you want to find out what helped the pound, just head on over to my daily roundup!

Interesting that just as the American people may have reached the point of government spending fatigue, as its government heads into the G-20 to tell other countries they need to spend more.

And just like that, it’s a Friday! Before you head off to the pub to catch the Portugal vs. Brazil match, make sure you check out today’s roundup!

Martin Wolf of the Financial Times recently referenced a paper that made the case that fiscal contraction will actually stoke consumer confidence and induce consumer spending that is necessary towards achieving a healthy recovery. Cut spending and taxes, so the argument goes.

Well, wadya know?! It looks like there’s a dissenter in the Bank of England’s Monetary Policy Committee! I wonder… Who could it be?

If only the World Cup results had an impact on price action, the US dollar wouldn’t have been such a loser yesterday! Check out my daily economic roundup to learn about the reports and events that matter to the currency market.

I was reading George Soros’ criticisms of Germany this morning. If the euro experiment fails, it will be all Germany’s fault, according to Mr. Soros (yeah, okay, sure).

Brits better brace themselves for a harsh round of austerity measures now that Chancellor Osborne unveiled the emergency budget plan. Yet what do I see after the report? A pound rally! What gives?

And boom, France is out of the World Cup. I don’t know what that has to do with Forex, but I just thought y’all should know… Hah! Now on to my roundup!

We could refer to our once-upon-a-time Currency Currents that criticized the stress tests administered to US banks, but really we wouldn’t be saying much more than: ‘they were a phony, propaganda-laden strategy that aimed to deceive investors of the obvious risks that remained with US banks.’

Gotcha! You didn’t think it would be THAT easy did you?!? In any case, let’s turn the spotlight on this week’s main event: the FOMC rate decision. Will the Fed finally omit their favorite “extended period” phrase this time around?

Feeling a lil’ lost in the markets right now? Don’t know what’s going on? Make sure you read today’s roundup to stay in the loop as to what’s been happening lately!