Posted on September 3rd, 2008 at 3:49 pm by Alfonso Esparza
The Bank of England started its rate setting meeting today. The current 5.00% rate is seen by some market participants as harmful to the economy of the UK, specially as Housing and consumer numbers have dropped.
Inflation has eased somewhat after commodities retreated across the board but it is still close to a 16 year high (4.4%). Investors are starting to believe the BOE could cut rates to help boost economic growth if inflation concerns allow the Central Bank to reduce borrowing costs.
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Filed under: Forex Graph Commentary
Posted on August 22nd, 2008 at 5:00 pm by Alfonso Esparza
What is correlation? Wikipedia Definition:
In probability theory and statistics, correlation, (often measured as a correlation coefficient), indicates the strength and direction of a linear relationship between two random variables. In general statistical usage, correlation or co-relation refers to the departure of two variables from independence.
Some currency pairs tend to move together in the same direction...
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Filed under: Forex Graph Commentary
Posted on June 17th, 2008 at 2:39 pm by Alfonso Esparza
With the Global Economies current inflationary worries, the questions is not: If most of the World's Central Banks are going to hike rates to stave of inflation, but rather When are they going to start?
The US Federal Reserve has already strongly hinted that their ease cycle is over. What remains unclear is if the current state of the American Economy is strong enough to start a rate hike cycle. The following graph shows the evolution of the Federal Funds Rate since 2004.
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Filed under: Forex Graph Commentary
Posted on June 5th, 2008 at 3:47 am by Alfonso Esparza
The Non-Farm Payroll (NFP) is reported monthly, this figure represents the total number of paid U.S. workers of any business, excluding farm employees, general government employees, private household employees, and employees of nonprofit organizations that provide assistance to individuals. The NFP report also includes estimates of the average work week and average weekly earnings of all non-farm employees.
The US NFP has remained in negative territory for all of 2008. While Wednesday's ADP figures reported an increase of +40k, historicall...
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Filed under: Forex Graph Commentary
Posted on May 29th, 2008 at 10:51 am by Alfonso Esparza
Under the leadership of Alan Greenspan the
Federal Reserve Funds Rate started to climb from a rate of 1.00% in June 2003 until reaching a high of 5.25% on June 29th 2006. This marked the first meeting of the ...
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Filed under: Forex Graph Commentary
Dean's FX
