Market News

That’s a billion dollar question. Let’s analyze the signals and economic environment in a comparative global context to see if the dollar trough is here or if there is room for it to depreciate further.

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.

US existing home sales comes out tomorrow. But what the heck does that have to do with the economy and trading the U.S. dollar?

The Fed kept interest rates unchanged at 5.25%. Find out how what’s changed in their statement from their previous meeting and what it all means.

I found an interesting article written by Alex Merk, Manager of the Merk Hard Currency Fund. Without shying away from controversy, he explains what he believes to be are a number of myths of why the dollar ought to move up or down.

The Fed kept interest rates unchanged at 5.25%. Find out how what’s changed in their statement from their previous meeting and what it all means.

Since the NFP comes out tomorrow I thought it would be good to take a closer look at this fundamental giant.

Tomorrow we have the GDP report coming out at 8:30 am ET. GDP is the broadest measure of growth for the US economy…

Tomorrow the Durable Goods Orders report comes out and I thought we should take a brief snapshot of the report before its released. If you don’t know what the Durable Goods Orders report is or why it’s important, our Forexpedia will explain everything and get you caught up.

The major US news for today was the Consumer Sentiment report which was released at 10:00 am ET. Basically, consumer sentiment is a survey given out by the University of Michigan that asks participants about their view towards the economy.

Fed statement contains the latest decision regarding changes to US short-tem interest rate (“fed funds rate”), their take on the economic conditions that affected their decision, and important clues on what the next rate decision will be. The market goes through the statement with a fine tooth comb and magnifying glasses. One addition or deletion of a word could unlock the secret of future Fed interest rate decisions and cause the market to move hundreds of pips.