The Forex market is fairly quiet this morning as prices aren’t really moving in any particular direction. There was some slight USD selling during the Asian session but nothing to write home about. For prices to move substantially, more information needs to be released for the market to accurately judge and clarify risks in the current environment. Yesterday’s US jobless claims disappointed as…

Risk-correlated trades took a thrashing yesterday as concerns over the weak US recovery gave way to macro-concerns about the fragile global recovery. Soft retail sales out of China and the large US trade deficit multiplied by the FOMC’s bearish review caused risk appetite to shrivel. The pessimism reignited fears of a potential relapse in EU sovereign problems as news broke that Ireland still has…

The key takeaway for yesterday’s FOMC meeting was that Fed members seemed less confident about the US recovery. The erosion in their optimism spread quickly to weigh on risk-correlated trades and further contracted US yields. Interestingly, the knee-jerk reaction in the Forex Market was the buying of the EURUSD. The Euro jumped nearly 50 pips against the dollar but as further analysis of the…

As was universally predicted, the Japanese central bank held rates steady. But the real surprise was that no further easing measures were announced by the bank. Finance Minister Noda reiterated that he was monitoring the currency market but further attested that the BoJ and Japanese government should cooperate on battling deflation and strengthening the JPY. Data from the Japanese…

The Asian session was muted this morning due to Singapore’s holiday and Monday began with the same debate we left off with on Friday. The US economy has become the only topic that matters to the market with some side chatter on Wheat. The recent run of soft economic data including Friday’s disappointing ex-census NFPs falling -131k with private payrolls clawing back only 71k has renewed the…