COMMENTARY

• How to Trade the FOMC Meeting
  Written by Kathy Lien
  Last updated 1/27/2010 9:07:55 AM ET
  It is that time of the month again when the Federal Reserve sits down and discusses what they want to do with U.S. monetary policy. Their decision will impact the financing costs for everyone from corporations to the average American.
  4 comments
• Euro Holds Support at 1.4000
  Written by Boris Schlossberg
  Last updated 1/27/2010 4:42:35 AM ET
  With equities hitting their lowest levels in more than a month risk FX has been under pressure all night long, but due to the barren eco calendar the ranges have been relatively tight and so far high beta currencies have managed to hold on to key support levels as markets turn their attention to the FOMC meeting at 19:15 GMT later today.
  1 comment
• Could RBA Hold Off on Rate Hikes?
  Written by Boris Schlossberg
  Last updated 1/27/2010 12:52:36 AM ET
  Australian CPI printed broadly in line with expectations. Trimmed mean CPI came in at 0.6% as projected while the q/q numbers were a bit hotter at 0.5% vs. 0.4% eyed. The largest drivers of increase in prices were housing, food and beverages and holiday costs.
  18 comments
• AUD/CAD Could Face Resistance at 0.9655
  Written by Bradley Gareiss
  Last updated 1/26/2010 7:57:52 PM ET
  A bearish butterfly pattern could lead to major resistance on the AUD/CAD.
  2 comments
• U.S. Dollar: Countdown to FOMC
  Written by Kathy Lien
  Last updated 1/26/2010 5:32:27 PM ET
  Based upon the price action in the currency markets over the past 24 hours, it appears that after one day of respite, risk appetite has soured once again. The U.S. dollar traded higher against all of the major currencies except for the Japanese Yen as investors flocked into the safety of the lowest yielding currencies. Stronger U.S. economic data failed to help the dollar rise against the Yen, the currency pair that most accurately reflects the market’s attitude towards the U.S. economy.
  4 comments
• Forex: U.S. Confidence Improves but Not Enough to Restore Risk Appetite
  Written by Kathy Lien
  Last updated 1/26/2010 10:10:39 AM ET
  After a brief rally on Monday, risk aversion has swept through the foreign exchange once again. Safe haven flows drove the dollar higher against every major currency except for the Japanese Yen because the currencies that perform best during periods of risk aversion are the lowest yielders.
  9 comments
• Volatility Abounds as Euro, Pound and Yen Go Their Separate Ways
  Written by Boris Schlossberg
  Last updated 1/26/2010 5:32:18 AM ET
  A very busy night of trade in the FX market with the most vicious volatility coming from the USD/JPY pair which went on a wild ride during the Asian and early European session seesawing between 89.50 and 90.30 as it was caught in the crosscurrents of opposing newsflow. The yen initially strengthened on a report that PBOC increased internal reserve requirements for Chinese banks yet again but then skyrocketed to 90.30 on an announcement that S&P downgraded Japan’s debt from stable to negative.
  2 comments
• Yen Goes on a Rollercoaster Ride
  Written by Boris Schlossberg
  Last updated 1/26/2010 2:41:53 AM ET
  The yen went on a rollercoaster ride during the Asian session trade today with USD/JPY first dropping to a low of 89.55 only to skyrocket back to 90.30 in matter of seconds as news of S&P downgrade of Japan swept the market. The yen initially strengthened on reports that Chinese monetary authorities have tightened bank capital requirement yet again spurring further risk aversion flows on fears that China is preparing to initiate a tightening monetary policy and a possible rate hike as early Q1 of this year.
  9 comments
• Review: Trade Invalidation Management
  Written by Bradley Gareiss
  Last updated 1/25/2010 7:50:06 PM ET
  We will discuss the easiest way to keep track of invalidated trades.
  8 comments
• U.S. Dollar: New Week, New Focus?
  Written by Kathy Lien
  Last updated 1/25/2010 5:09:05 PM ET
  Today’s rally in U.S. equities helped to alleviate part of the risk aversion that dominated the forex markets last week. Higher yielding currencies recovered against the U.S. dollar but the gains remain modest when compared to recent losses. The dollar retreated against every major currency except for the Japanese Yen which has a lower yield. With the Federal Reserve’s monetary policy announcement and fourth quarter GDP report due for release later this week, forex traders will undoubtedly turn their focus back to the outlook for the U.S. economy. However politics could still affect how the dollar trades with Bernanke’s confirmation hanging by a thread and President Obama scheduled to deliver his State of the Union Address on Wednesday. It is also a big week for earnings with Apple scheduled to report this afternoon and a number of S&P 500 companies to report later this week. If equities continue to rally, we could see a further rebound in the currency market, but sentiment is very shaky at this time and therefore it won’t take much to derail the rally.
  5 comments
• EUR/NZD Headed For Short-Term Dip?
  Written by Roger Stojsic
  Last updated 1/25/2010 2:22:31 PM ET
  A bearish head and shoulders pattern in play on dip below 1. 9750
  0 comments
• USD/JPY Gives Up Gains After Record Decline in Existing Home Sales
  Written by Kathy Lien
  Last updated 1/25/2010 10:46:48 AM ET
  U.S. equities are trading higher this morning, which helped lift higher yielding currencies and force the U.S. dollar to give up some of its recent gains.
  6 comments
• Is Euro The New Safe Harbor?
  Written by Boris Schlossberg
  Last updated 1/25/2010 5:14:25 AM ET
  A quiet range bound night in FX with high beta currencies getting a bit of a lift on news that the Bernanke confirmation looks more likely to pass, but as we noted earlier, “Dr. Bernanke’s reappointment is far from a done deal and should it face additional challenges as the week progresses, it will no doubt trigger further risk aversion flows as financial markets grapple with the uncertainty of the outcome.”
  2 comments
• Bernanke Puts Dollar At Risk
  Written by Boris Schlossberg
  Last updated 1/25/2010 2:01:15 AM ET
  Will Ben Bernanke be reconfirmed as the chairman of Federal Reserve? As markets start a new week of trading that question remains open even as Dr. Bernanke’s term is due to expire in just six days from now. The confirmation which seemed merely a formality just a few weeks ago has turned into high drama on Capitol Hill after several Republican and Democratic senators voiced their opposition to Dr. Bernanke’s second term as chairman.
  5 comments
• Adjusting Profit Targets
  Written by Bradley Gareiss
  Last updated 1/22/2010 6:21:49 PM ET
  How to update profit targets on FX360 trade recommendations.
  8 comments