Posted on November 28th, 2008 at 3:43 pm by Scott Boyd
British Government to Buy RBS Controlling Interest
The British Government will buy nearly 60 percent of the Royal Bank of Scotland after an emergency share offering to generate cash for the troubled bank failed to attract public investors. The government will spend nearly £20 million to complete the transaction. More
China's Foreign Cash Reserves to Top $2 Trillion
China's foreign cash reserves are expected to exceed $2 trillion by the end of the year further cementing its title as the world's largest holder of foreign currency reserves. Japan and Russia -... Read more »
Filed under: Forex Trading News and Rumors
Posted on November 28th, 2008 at 6:06 am by Dean Popplewell
The ECB is set to slash borrowing costs next week. But, how much will Trichet and Co. cut to make a market impact. After this morning inflation numbers (+2.1% vs. +3.2%, m/m), 50bp will do very little for the market. Will they have the nerve to be 100bp aggressive? The markets needs it, consumers need, global psychic needs it.
The US$ is weaker in the O/N trading session. Currently it is lower against 13 of the 16 most actively traded currencies, in ‘subdued’ trading range.
With most trading desks taking an extended thanksgiving holiday, liquidity will be a major factor during today’s session. There is very little da... Read more »
Filed under: Dean's FX
Posted on November 28th, 2008 at 5:55 am by Scott Boyd
EU Central Bank Could Lower Rates
With inflation falling from 3.2 to 2.1 percent for the month of October and growing pressure to help the slumping economy, some analysts predict that the European Central Bank could cut interest rates by up to 1 percent from the current 3.25 percent. More
Pound and Euro Fall Against Dollar
The dollar gained on the pound and the euro this morning as European stock markets opened lower. More
Oil Falls Below $54... Read more »
Filed under: Forex Trading News and Rumors
Posted on November 27th, 2008 at 2:09 pm by Scott Boyd
Was it really just a few months ago that central banks were warning against the possibility of
inflation – even
stagflation – creeping into the economy? The
Bank of England and the
European Central Bank were so worried about inflation that they both raised or maintained their interest rates throughout the summer vowing to head off any surge in inflation.
But how quickly things can change. Within just a few mon... Read more »
Filed under: FXCommentary
Posted on November 27th, 2008 at 1:08 pm by Scott Boyd
China Warns Economic Woes Could Worsen
China has issued a warning that annual growth could fall to 8 percent this quarter from the 9 percent recorded last quarter which is still significantly less than the 10 to 12 percent growth rates recorded for the past five years. More
US Agriculture Department Expects Food Price to Increase
The US Department of Agriculture released a report today outlining an expectation that food prices will increase 3.5 to 4.5 percent in 2009 compared to the 5.0 to 6.0 percent increase for 2008. ... Read more »
Filed under: Forex Trading News and Rumors
Posted on November 27th, 2008 at 5:51 am by Dean Popplewell
Happy Thanksgiving! So far this has been a week to celebrate for both equities and FI markets. We have witnessed the strongest 4-day gain in over 70-years. Utopia would have a sustainable trend, but these markets are shaping up to experience more job cuts, more global write-downs and with yields at current levels, deflation. We are currently experiencing a bull run in a bear market. ECB will start the ball rolling after next week’s interest rate cut.
The US$ is weaker in the O/N trading session. Currently it is lower against 12 of the 16 most actively traded currencies, in ‘subdued’ trading range.
Yesterday, the US... Read more »
Filed under: Dean's FX
Posted on November 27th, 2008 at 5:27 am by Scott Boyd
Euro Gains on Dollar
The euro gained on the dollar in the wake of positive news from the European stock markets. More
Markets in Asia and Europe Lift on US Rally
Markets around the world are higher this morning after Wall Street completes four consecutive days of positive gains. American markets are closed today for the Thanksgiving holiday. More
Attacks Close Indian Markets
India's financial markets remain closed i... Read more »
Filed under: Forex Trading News and Rumors
Posted on November 26th, 2008 at 2:09 pm by Scott Boyd
New Home Sales Fall To Lowest Level In Over Seventeen Years
A report released by the Commerce Department on Wednesday showed that new home sales fell 5.3 percent to an annual rate of 433,000 units in October from the revised September rate of 457,000 units. With the decrease, new home sales fell to their lowest level since January of 1991. More
China's Central Bank Cuts Rates
The rate cut, which will come into effect on Thursday, will see rates fall to 5.58% from 6.66%. This is the biggest cut in the cost of borrowing in China since October 1997, during the Asian financial crisis. ... Read more »
Filed under: Forex Trading News and Rumors
Posted on November 26th, 2008 at 5:47 am by Dean Popplewell
The Fed once again is attempting to stay ahead of the curve. Yesterday they took new and bolder steps to unfreeze credit for homebuyers, consumers and small businesses. They are committing another $800b, by way of purchasing $600b in mortgage securities and earmarking $200b to support loans for the consumer and smaller businesses. So far Bernanke and Paulson actions have been reactionary and not proactive. To date $7trillion has been committed and the ‘hole’ keeps getting bigger!
The US$ is stronger in the O/N trading session. Currently it is higher against 13 of the 16 most actively traded currencies, in another ‘whippy’ trading range.
... Read more »
Filed under: Dean's FX
Posted on November 26th, 2008 at 5:25 am by Scott Boyd
EU Unveils its own Economic Recovery Plan
The European Commission announced a €200 billion economic recovery plan with a goal to boost consumer confidence and encourage spending. More
US Durable Goods Falls 6.2%
The US Commerce Department announced that orders for durable goods fell by 6.2 percent for the month of October - the largest single-month drop in two years. A dramatic reduction in new car and airplane orders accounted for much of the decrease. ... Read more »
Filed under: Forex Trading News and Rumors
Dean's FX
