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Week ending 27 March 2009: More sharp gains in global equities markets, plus crude sustaining above US$50/bbl, increased speculation although yields in one-month Treasuries fell back into negative territory. Economic and political gaffes fueled market movements ahead of the G20 meeting.
In a light Australian data week, the January Conference Board leading index improved to −0.6% [...]
Two announcements, one by the U.S. Federal Reserve and the other by the Treasury, rocked financial markets toward the close of the previous week and before the opening of this one. The two announcements had drastically different effects on the forex trading market, although the end result was the same. What the long-term effects of [...]
Week ending 20 March 2009: As expected, the FOMC left rates unchanged at 0.0–0.25%; however, it flipped on the printing press and aggressively leveraged quantitative easing (QE), sharply weakening USD. Commodities gained, equities dithered, borrowing costs and U.S. investment returns fell, and the VIX risk-aversion measure rose anew beyond 45, while USD/CHF lost all its [...]
On 12 March 2009, the Swiss National Bank announced a 25bps cut in the official three-month franc LIBOR rate to a range of 0–0.75%, the lowest level since 2003. At the same time, the SNB initiated quantitative easing through the purchase of corporate bonds and worked to weaken the franc through direct intervention in the [...]
Week ending 13 March 2009: Global stock indices rose in the early part of the week and investor confidence tried to follow. Quantitative easing and a LIBOR rate cut by the Swiss National Bank was reinforced by direct intervention in the forex trading market, and the franc depreciated 500 pips versus the Euro and 300 [...]
The forex trading market currently remains within the unweakening grip of risk aversion, rather than either technical factors or fundamental data. Most currency pairs continue moving without dependable trend, and rather are responding to the mood of the day. When investors feel hopeful, the U.S. dollar, Japanese yen, and Swiss franc depreciate and higher-yielding currencies [...]
Week ending 6 March 2009, A horrible week for U.S. equities, with the Dow Jones breaching first 7,000 then 6,500, left currencies consolidating between risk aversion and any hint of hope shell-shocked investors could find. The weight of poor U.S. fundamental data finally shifted its stance as the last safe-haven currency, sending the Swiss franc [...]
Forex traders face several fundamental risk events scheduled for release Thursday, 5 March 2009, including:
• The second reading on the Eurozone’s 4Q2008 gross domestic product, due to be released 10:00 AM (all times GMT). The initial reading printed −1.5% q/q, −1.2% y/y, and no adjustments are anticipated at this time.
• The Bank of England interest [...]
