Forex Pairs Waiting for The Trigger

US new-home sales fell in May (slightly softer than expected) and the big jump in demand in April was revised lower, while the median price of a home compared to a year earlier dropped. Sales of...

US Dollar Sentiment Remains Bearish

Today's price actions in the forex market have been influenced by a couple of fundamental factors, one of which is the correlation to the stock market - the Shanghai Composite Index in particular. This benchmark...

Will the Carry Trade Party Continue?

This coming week will be one packed with mega economic releases. The US dollar may extend its losses against the Euro, Sterling and Swiss franc in the forex market as reports are forecast to indicate a slowdown in the US housing market. The...

Is the Fed In Touch with Reality?

Are Americans generally coping well or not? Recent housing indices show record foreclosure numbers, mortgage rate increases and home price depreciation. Rising rates, among other factors, have caused the...

Signs of Improvement in US Economy

The US dollar has rallied against EUR, CHF, GBP and JPY in the forex market. US jobless claims rose to a two-month high last week (up 10,000 to 324,000), suggesting the pace of job growth is slowing...

Dismal US Housing Data

US housing starts fell for the first time (-2.1% vs -3.5% forecast) in four months during May, but building permits increased, a good sign for future construction. Starts...

Drifting Between Rate Cut and Rate Hike

Today's forex economic calendar is almost empty. With most market players pinning for the release of the US NAHB housing market index (expected to come in unchanged from month at 30) later on, the US dollar ...

Chasing Carry Trades in the Financial Markets

The US dollar did not get much help from today's inflation data. US consumer prices rose 0.7% (0.6% expected) in May at their fastest rate in almost 2 years on sharply higher energy prices but...

US Inflation is Well and Alive

US retail sales data for May surged at a rate more than double expected. Overall sales were up 1.4% versus an expected 0.6% rise. Sales excluding autos were up 1.3% vs an estimate of...

Nothing So Far to Pull USD Down

It is like the calm before a storm. Tight trading ranges ruled again today; it seems like most players are just too cautious ahead of key economic data to be released in the later part of the week. Yesterday, New Zealand stepped in to sell the Kiwi as a signal to...

Reserve Bank of New Zealand Intervenes in Forex

The only noteworthy event of today is a rare move of intervention by a central bank in forex. If you are thinking it's Japan, it's not. It's the Reserve Bank of New Zealand (RBNZ). New Zealand Finance Minister Michael Cullen said today that the RBNZ intervened in the forex.....

Forex Universe Revolves Around USD

Financial markets around the world will be trembling, shaking next week - perhaps may even go bonkers (in either a good or bad way). The market sentiment on USD is extremely bullish at the moment, largely due to the jump in key...

Traders in a Rush to Dump US Bonds

Today's sharp moves in the forex market are a good example of how the fixed income market is linked to the forex market. Yesterday, yield of the US Treasury 10-year notes rose the highest in more than three years,...

Fed Chairman Bernanke Notes Ebbing Inflation

The US dollar hit a 3-week low against the Euro on remarks by Federal Reserve Chairman Bernanke, which suggest that the Fed is now more comfortable with inflation levels. Bernanke notes a "gradual ebbing" of core...

Carry Trades Continue to Find Demand

Another day of profit for medium/long-term yen carry players. CAD/JPY and EUR/JPY rallied to record new levels on the carry ladder. USD/CHF and USD/JPY declined instead, as the sentiment on the USD remains bearish...