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COMMENTARY

• USD: Fed Meeting Over, Back to Square One?
  Written by Kathy Lien
  Last updated 9/21/2011 5:21:11 PM ET
  The Federal Reserve meeting is now behind us and the central bank’s feeble attempt to stimulate the economy has proven to be a big disappointment for the markets
  1 comment
• Fed Comes Up Short, Dollar Soars
  Written by Kathy Lien
  Last updated 9/21/2011 3:18:59 PM ET
  Investors are disappointed by the Federal Reserve’s feeble attempt to revive the U.S. economy. This afternoon, the U.S. central bank took the rare step of twisting the yield curve by selling short term Treasuries and purchasing longer term ones. This was exactly what the market had
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• FX: Stronger US Data Questions Need for Stronger Stimulus
  Written by Kathy Lien
  Last updated 9/21/2011 10:42:10 AM ET
  With only a few hours to go before the Federal Reserve's monetary policy announcement, the U.S. dollar is trading higher against all of the major currencies.
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• Cable Hits an 8 Month Low; FOMC in View
  Written by Boris Schlossberg
  Last updated 9/21/2011 5:32:21 AM ET
  Cable hit a fresh 8 month low against the greenback in morning London trade today after BoE minutes revealed that policymakers were inching closer towards implementing more QE measures to stimulate the lackluster UK economy. Although Adam Posen was the only MPC member to actually vote for more QE, the minutes noted that the decision was “finely balanced” suggesting that the majority view is becoming more dovish as the UK economy continues to struggle with recovery.
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• USD/JPY Could Spike If FOMC Disappoints the Market
  Written by Boris Schlossberg
  Last updated 9/21/2011 2:48:43 AM ET
  The dollar dropped to a one month low against the yen ahead of the FOMC meeting that ends today as traders speculated that the Federal Reserve would announce further monetary policy easing measures to stimulate the US economy. The market anticipates that the Fed will shift its balance sheet from the short end to the long end of the curve extending the maturity of its assets. Operation Twists, as it is known, is intended to drive long term US rate lower in an effort to lower long term borrowing costs and stimulate business activity.
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• Bonus EUR/USD Long Idea at 1.3624
  Written by Bradley Gareiss
  Last updated 9/20/2011 10:19:22 PM ET
  A bullish Gartley pattern is forming on the EUR/USD.
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• USD: Counting Down to FOMC, Will Fed Underwhelm?
  Written by Kathy Lien
  Last updated 9/20/2011 4:34:35 PM ET
  The Federal Reserve has shut its doors to begin its two-day monetary policy meeting and the clock is ticking. Although stocks traded higher in anticipation of more stimulus, the dollar’s
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• FOMC Preview: Why More QE May Not be so Bad for the Dollar
  Written by Kathy Lien
  Last updated 9/20/2011 12:47:11 PM ET
  The general belief in the market is that more Quantitative Easing or stimulus is bearish for the U.S. dollar because it lowers U.S. yields and erodes the value of the greenback.
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• FX: EUR/CHF on the Move, Pre-FOMC Trades
  Written by Kathy Lien
  Last updated 9/20/2011 8:56:38 AM ET
  It has been another busy morning in the foreign exchange market but interestingly enough, it has been one of optimism and not fear. As we wrote in our notes on Monday, we expect profit taking on long U.S. dollar positions
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• Euro Recovers From Downgrade News But Rally Capped
  Written by Boris Schlossberg
  Last updated 9/20/2011 5:31:27 AM ET
  EUR/USD rebounded from a selloff in early Asia trade after S&P downgraded Italian sovereign debt, but the pair’s rally stalled at the 1.3700 level as credit concerns continued to dog the unit. Currency markets saw a very choppy session as euro first tumbled below 1.3600 on the downgrade news as well as rumors that Greece was considering a national referendum on leaving the EZ. Additionally and article in FT suggesting the Siemens withdrew 500M euro from a French bank to put on deposit with ECB also spurred some risk aversion flows. However, the pair recovered towards 1.3700 in a fierce short covering rally at the start of European session trade after both rumors were denied.
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• Euro Hit By S&P Downgrade of Italy
  Written by Boris Schlossberg
  Last updated 9/20/2011 2:51:48 AM ET
  Standard and Poor cuts its rating of Italy to A, five steps above junk territory citing the country’s weak economic growth and fragile coalition as key negative factors that could impact credit in the coming months. Italy’s debt is the third largest in the world and the country faces nearly 111 Billion dollars of refinancing over the next several months which it may find increasingly more difficult to do given tonight’s action by the S&P.
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• Review: Trading Psychology and Drawdowns
  Written by Bradley Gareiss
  Last updated 9/19/2011 8:19:57 PM ET
  Why is psychology the most important aspect of trading how to stay in the right frame of mind.
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• FX: How to Position for Upcoming Event Risks
  Written by Kathy Lien
  Last updated 9/19/2011 5:26:00 PM ET
  The rollercoaster like price action in the foreign exchange market today gives everyone a taste of what to expect this week. There is a reasonable amount
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• Double Blow for FX: Tax Hikes and Greek Concerns
  Written by Kathy Lien
  Last updated 9/19/2011 10:02:52 AM ET
  Although no major U.S. economic reports were released this morning, there has been no shortage of volatility in the financial markets. President Obama is scheduled to speak at 10:30am ET and his new plan to cut the budget deficit by $3.6 trillion over the next decade will not go over well with investors. The President has been a big advocate for higher taxes and his announcement later this morning is expected to include higher taxes for wealthy individuals and corporations.
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• For EUR/USD All Eyes on Greece As Default Fears Mount
  Written by Boris Schlossberg
  Last updated 9/19/2011 5:35:10 AM ET
  Euro remained under pressure at the start of week’s trade after this weekend’s G7 meeting in Poland failed to produce any agreement on the Greek rescue deal renewing fears that Greece was headed for a default on its sovereign debt. Markets remain nervous as the troika of IMF ECB and EU continues to withhold the disbursement of the second tranche of bailout funds to Greece seeking further deficit reduction moves from the country. Greek Prime Minister George Papandreou cancelled a planned visit to the United States to hold an emergency cabinet meeting yesterday to address the concerns of the European officials.
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