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Today we learned the the ECB is maintaining their overall low interest rate policy. This, at a time, when several major economic statistics are literally screaming the need to engage in additional stimulus. Read more
The main movements were JPY weakness and AUD strength in otherwise quiet trade ahead of the BoE and ECB announcements. The JPY fell for the third consecutive day as its usual inverse correlation with risk appetite persisted, with stocks trading higher in both Asia and Europe. Read more
The JPY weakened as stock markets rallied, the AUD rose following a robust set of Australian data, while the euro and sterling were steady ahead of today's ECB and BoE meetings. USD-JPY rose to 102.77, breaching above its 50-day moving average and coming within five pips of the Fe-21 peak. Read more
The dollar was mixed in N.Y. trade on Wednesday, easing early on the back of a softer ADP employment print, and softer non-manufacturing ISM. Slightly easier Treasury yields weighed as well, particularly on USD-JPY. EUR-USD found support a couple of times, and eventually made its way to 1.3745 in relatively light dealings. Read more
Several weeks ago, I noted the 1.38 level had provided strong resistance for the euro/dollar pair on three different occasions over the last 6 months. The above chart shows this level is again (for the 4th time) providing very strong resistance for the pair. Read more
The USD has been bid on the back of the 10 bp surge the U.S. Treasury yield saw yesterday (which has since been holding near 2.70%). USD-JPY logged a one-week high of 102.43, which brings the 50-day moving average at 102.53 into scope. EUR-USD sank to a new low for the week at 1.3707. Read more
The AUD saw some chop in otherwise steady-with-narrow-ranges for the main currencies during pre-European trading in Asia. Wall Street closed with a solid gain Tuesday and the MSCI Asia Pacific equity index built on yesterday's recovery gains, showing a 0.8% gain at the time of writing, still reflecting the abatement in geo-political concerns over the Ukraine situation. Read more
The dollar firmed up in N.Y. trade, after showing signs of weakness early in the session. Russia's apparent pull back from the brink saw U.S. equities more than recover Monday's steep losses, taking the S&P 500 to fresh record highs. This seemed to help the dollar some, though EUR-USD softness was a leading factor as well. Read more
First of all, I'd like to than Prof. Krugman for confirming a point I've been making for the last year. He says: short-run fluctuations in the inflation rate are more or less entirely about gasoline prices, which affect headline and even, to some extent, core inflation via their impact on costs. Beyond that, as I've been saying for a very long time, historically high gas prices since 2010 have acted like a governor on the US economy, preventing it from ever achieving "escape velocity." In that regard, as of this week we are hitting an important milepost on the journey of the loosening of that choke collar. Read more
An unwinding of risk-off positioning was prompted by signs that Russia is de-escalating the Ukrainian crisis. Moscow ordered its troops engaged in military exercises near the Ukrainian border back to base. Putin subsequently said that Russia would only use force as a last resort and that he his not thinking of annexing Crimea, although the people there should have the right to self-determination. Read more
 providing very strong resistance for the pair.&p[images][0]=http://xecommunityassets.s3.amazonaws.com/EURUSD_0.png){kind=link}