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We believe the current level of anxiety over the Dollar is overdone for two reasons . First , Exhibit 1 shows the path of trade-weighted USD versus the majors since 2014. The red arrows show the role that ECB and BoJ easing played in driving the

Will they or won't they? The debate over whether the U.S. Federal Reserve is readying an interest rate hike will get its umpteenth airing over the coming week, with all eyes on Chair Janet Yellen to provide some clarity. Amid conflicting signals from

More research has shown that the GBP may be reaching a bottom against the Euro and Dollar but don't expect a strong recovery just yet. British Pound to Euro exchange rate today (markets closed): 1.1551, weekly best: 1.1631 The Euro to Pound Sterling

Fedspeak has whipsawed FX markets over the past week. The long risk/short-USD trade was initially boosted by comments from San Francisco Fed President Williams, only to be undone by subsequent hawkish remarks by New York Fed President Dudley, who

Hedge funds have been getting throttled since the beginning of 2016, and because of that people are starting to ask questions about their worth. As you know, people tend not to ask questions when they are making money. All of a sudden, investors

It's easy to criticise the Fed for its failures, because its successes have been only one in number: kicking the can down the road. But we should spare a thought for the difficulties policy-makers now face. So what would you do if you were on the

Pound Sterling should stabilise around current levels ahead of a recovery into 2017 according to forecasts contained in Lloyds Bank's latest International Financial Outlook. Another week, another worst-performer gong for GBP. While the country's

The higher LIBOR rate did not provide USD support, unlike other times when there have been relative rises in US private sector funding costs. There are a number of reasons: First,  the regulation driven LIBOR increase tightens US financial

In this crazy world of central banks a 25bps cut sends a currency up over 250 pips There's something seriously wrong in the world when you cut rates party to sink your currency and it shoots 250 pips higher. Eamonn had it spot on last night. The RBNZ

Fed to next hike in Q4 2016, probably December US GDP to grow at 2.5% (2.2% prior) annualised in Q3 and 2.2% (unch prior) in Q4 Core PCE to average 1.8% in Q4 and 1.7% for whole of 2016 (Unch from prior poll) Unless the US has a ball

The Jackson Hole Symposium is annual affair, attracting big wigs from central banks around the world This year, the 2016 Economic Symposium is titled "Designing Resilient Monetary Policy Frameworks for the Future" Its happening August 25 to

It was a strong day for the U.S. dollar. The greenback traded higher against all most of the major currencies with USD/JPY drifting back up to 102. U.S. data was relatively benign as import prices increased 0.1% in July and jobless claims ticked

Heike Hoffman is a 54-year old fruit merchant in a small town in western Germany. She has no formal training in finance. She’s not running a multi-billion dollar portfolio. And yet, as the Wall Street Journal reported on Monday, “[w]hen Ms. Hoffman

Latest client note from the US investment bank 12 Aug 2016 AUD: Bullish Following Rate Cut. We have turned bullish AUD in the near term and believe it can continue to rally following the RBA's rate cut.  AUD's reaction to the rate cut is

The USD is in a soft spot amid a global rush into yield and little perceived threat from the Fed, at least until Chair Yellen’s Jackson Hole appearance.  While we think USD pullbacks still represent medium-term buying opportunities, bulls will

It would be a mistake to doubt the Bank of England's ability to push yields, and therefore the Pound Sterling, even lower argue Morgan Stanley. Pound to Euro exchange rate today: 1 GBP = 1.1621 EUR Euro to Pound Sterling exchange rate today: 1 EUR =

The war on US retail forex trading continues It's about to get even tougher to find a forex broker for Americans. Interactive Brokers is leaving the US retail forex market on September 1. Various clients report receiving a message saying that only

Slightly more data pads next week in Europe with some key release in the UK and the ECB minutes . Jobs, inflation and retail sales numbers in the UK will give some update on where the economy is over June/July. Still, it is just CPI which gives a

Morgan Stanley on the pound Textbook-like GBP weakness.  The easing measures announced by the BoE last week read like textbook tools to weaken sterling. Cutting interest rates by 25bps, indicating future cuts are likely and increasing the BoE's

EUR/USD is currently correcting higher in a sequence from lows created shortly after the UK vote. The wave count indicates the current leg from July 24 lows at 1.0951 is unfolding as wave C, the last wave in the bullish correction. From the July 24