Carry Trades to Get Support From IMF Comments

Carry traders should feel some reassurance from the International Monetary Fund (IMF). Research director Simon Johnson said that Japanese interest rates should remain low...

Friction Between the US and China

Another monster is on the back of the greenback today. A potential trade war between US and China is starting to get forex players nervous about holding the USD again. This situation stems from the US...

High Forex Volatility Has Returned

Forex volatility has returned and the time for big profits has come again. The Bank of Japan has left rates unchanged at 0.50% with a unanimous vote for the second consecutive month, following a hike...

Will the Bank of Japan Spring a Surprise?

The forex market is feeling rather sluggish, in the absence of European participation and fundamental news. The Bank of Japan's two-day policy meeting will end tomorrow, and the bank is...

How Much Can Payrolls Help the US Dollar?

Why is it that holidays always seem so short? I hope all of you got to have some fun and rest over the past few days. The US dollar went up after last Friday's better-than-expected non-farm payrolls which showed that unemployment in the US fell a 4.4% rate in..

EUR/USD Shoots to 2-Year High

Like a thief sneaking up from behind, EUR/USD finally broke past 1.3400-10 to a current 2-year high. This sudden Euro strength today is not that bewildering considering that weird things do happen..

US Service Growth Cools Down Further

Another piece of USD-negative data. US ISM non-manufacturing report showed the weakest level of expansion since the 50.7 reading in April 2003, the employment number was the weakest since July 2004, while prices..

Investors Show Interest in Carry Trades Again

Seems like the yen carry trade is establishing some serious interest again after the recent liquidation debacle. High-yielding currencies such as the Kiwi, British Pound, the Loonie have been climbing..

US Dollar Continues to Look Slightly Bearish

Among the four currency majors, Cable (GBP/USD) has been the biggest mover of the day, while the others have been trapped in range-bound action in the forex market. At the moment, the US dollar does not have a lot going for those who are bullish on its prospects. US...

Fundamentals Driving Currency Markets

The issue of US-China trade is indeed an important driver of forex movements, judging by how the US dollar got pushed down against other currencies last Friday when the Bush..

US Targets China with Anti-Subsidy Laws

The US dollar plunged severely near the European close (USD/CHF fell 100 pips in 20 mins), reversing its earlier gains, after the Bush administration said it would no longer exempt Chinese companies from US anti-subsidy laws. Forex analysts are saying....

Japanese Yen Has Gone Schizophrenic

A glance at the price movements of the four currency majors in forex charts quickly highlights an odd-one-out pair - the USD/JPY. While the other majors have been stuck trading in ranges, USD/JPY has moved so much that it has almost completely recouped yesterday's losses....

Traders Lose Confidence in Yen Carry Trades

Here it comes again - the great yen carry trade liquidation. Forex traders sold USD/JPY, GBP/JPY, EUR/JPY, NZD/JPY heavily on the basis of bearish USD sentiment. Just when people thought that carry trades are in fashion again, global uncertainties..

US New Home Sales Lowest Since 2000

The catalyst today in the forex market was US new-home sales, which unexpectedly fell in February, falling a second month in a row to the lowest level since 2000 as the housing sector showed more weakness. Sales of single-family homes decreased by 3.9% to a seasonally...