Mixed Bag of Economic Data for the US

The US dollar continues to fluctuate against other currencies even after the release of the US consumer price index. The consumer price index rose just 0.4% (0.5% expected) in April, compared to March's 0.6% increase. However, the core....

Will US Inflation Data Disappoint?

The forex market is currently in a cautious mood, with big players not willing to pile up their positions ahead of tomorrow's US consumer inflation data. The CPI core rate is forecast to rise to +0.2 from +0.1, but.....

Choppy Market Conditions Ahead?

What happened last Friday in the forex market? The US dollar went down modestly against GBP, CHF and EUR, but regained strength against JPY. As a recap, US retail sales showed a sharp drop in April, and wholesale prices...

Carry Trades in Jeopardy Again

Here it comes again? I'm talking about the precarious state of the carry trade business in which people borrow in Yen to invest in other foreign investments such as bonds, stocks or real estate. Yesterday, currency pairs with the..

Will Interest Rates Be Raised Or Not?

I, like many other forex traders, have one thing on my mind at the moment: The Fed FOMC rate announcement at 1815 GMT. The FOMC members are expected to keep interest rate steady at 5.25%. People are neither too bullish or bearish on the US dollar till...

French President Unhappy With Euro Strength

What has the Japanese yen got to do with the recently concluded French presidential election? French President-elect Nicolas Sarkozy won the presidency of the Euro area's second- largest economy after a campaign in which he attacked the European....

What to Expect in the Currency Markets

The forex market has been relatively quiet today - I guess it must be a case of the Monday Blues, in addition to the UK holiday today. According to the latest Commitment of Traders report, there has indeed been a reduction of Euro longs...