The Fed’s Bullard was out overnight arguing in favor of flexibility if the US economy proves weaker than expected, with “flexibility” meaning potentially extending the largest of its QE measures – the purchase of mortgage-backed securities – beyond the end of March deadline now established by the recent Fed monetary…
Monthly Archives: November 2009
USD/JPY Continues Consolidation Amid FX Fluctuations
USD/JPY has recovered earlier losses and is pushing higher towards 89 after U.S. Existing Home Sales topped analyst expectations. Therefore, it seems the USD/JPY’s correlative pattern is a combination of investor appetite for the risk trade countering comparatively loose monetary policy from the Fed. Since the Fed and the BOJ…
GBP/USD Bounces on Broad-Based Dollar Weakness
The Cable has stabilized nicely after Friday’s sizable selloff. The GBP/USD has popped back above its psychological 1.65 level and 11/12 lows as the currency pair benefits from a positive wave of EU and U.S. econ data. The set of Flash EU PMI data and U.S. Existing Home Sales came…
EUR/USD Rallies Strongly on Positive Flash PMI Data
The EUR/USD has taken advantage of its relative strength on Friday stemming from ECB President Trichet’s hawkish comments. The currency pair has since jumped back up to its highly psychological 1.50 level after of a wave of Flash PMI data that was altogether positive. Therefore, it seems the recovery in…
Euro Not Finished Yet
On the one hour Eur/Usd chart above, the market has completed a Short corrective three wave move, labeled as black waves A), triangle B), and C). The bottom of that move was found on Friday at 1.4800, where Euro was bought again against the U.S. currency. The corrections are always…