Mexican Currency To Rise In 2008
The Mexican currency (peso) saw gains today after the Federal Reserve cut the U.S. interest rate by 50 basis points. The move by the Fed has made yields in emerging market assets more attractive. The Fed has lowered the benchmark interest rate to 3% in an attempt to prevent the U.S. economy from falling into [...]
Read more »Forex Investors price in 50 basis point cut
Gold has slipped a little lower as market players anticipate the Fed’s upcoming interest rate decision. Yesterday’s rally above $930 USD has no doubt caused some profit taking, with other investors positioning themselves in case the anticipated 50 basis point cut from the Fed does not eventuate. Investors remain uncertain as to how much assistance [...]
Read more »Forex Investors Reduce USD Holdings On FOMC Minutes Release
Expectations continue to build that the Federal Reserve will pause its rates tightening cycle in August, this will result in Forex traders cutting their long USD positions. The latest release of minutes from the Federal Open Market Committee meeting (FOMC) revealed that Fed officials are uncertain about the future interest rate direction and are concerned [...]
Read more »US Dollar extends losses even with supporting US CPI results.
The USD extended losses on Wednesday after a higher-than-expected reading of U.S. inflation for May did little to dispel uncertainty about interest rate increases beyond an expected hike in late June. After seven consecutive sessions of gains in the dollar against the Euro, traders trimmed their positions after the Consumer Price Index data cemented the [...]
Read more »Markets eye data for clues on USD
The prevailing explanation for the sudden, precipitous fall by the USD is that the Fed is nearing the end of its current monetary tightening cycle, at which point interest rate differentials between the US and the rest of the world will begin to narrow. In this vein, Ben Bernanke’s hint that the Fed might end [...]
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