Forexperts Archives

Forex Markets Uncertain About U.S. Interest Rate Hike

Poor housing starts and lower than expected industrial production are forcing traders to rethink their position that the Fed will raise rates in June or August. There is even some talk that rates will not rise for at least a year. Some traders are now convinced the Fed will leave rates at current ... (Jun 17, 2008 6:20PM)

Unexpected Rise in Euro Zone Inflation Confirms Need for Rate Hike in July

The EUR/USD remained firm all session as Euro Zone CPI was reported higher than expected. This news solidifies the European Central Bank's need to raise interest rates in July. (Jun 16, 2008 7:05PM)

The Dollar Gains This Week -The Week in Review

This week ended with the U.S. Dollar posting its biggest gain since 2005. It is hard to believe that just a week ago the U.S. Dollar closed weak after the Euro soared on a worse than expected U.S. unemployment report. Since then comments from the Fed and the Treasury helped turn the Dollar around ... (Jun 13, 2008 4:51PM)

Retail Sales Report Confirms Fed's Path towards Higher Rates

The Retail Sales Report came out stronger than expected. The pre-report guesses were for an increase of 0.5%. The actual report showed a 1% increase. This news kept the Dollar strong all day as it confirmed the Fed's thinking that the economy is improving enough that an interest rate hike is... (Jun 12, 2008 5:19PM)

Dollar Loses Ground as ECB Members Explain Rate Hike

The Euro rallied against the Dollar on Wednesday as ECB members tried to explain the anticipated interest rate hike in July. Early in the session, one member of the ECB explained that his belief was that the rate hike would be a single event and not a series of hikes. The Euro reached its lowest p... (Jun 11, 2008 7:05PM)

Bernanke Talks Tough; Dollar Rallies

The Forex markets reacted swiftly and decisively after Fed Chairman Bernanke announced that economic risks have faded and implied that interest rates may have to go up to fight rising inflation. (Jun 10, 2008 6:24PM)

U.S. Treasury Department Fires Back at ECB

The U.S. Treasury, the guardian of the U.S. Dollar, finally stepped up to the plate and took a hard swing to counter ECB President Trichet's extremely hawkish comments last week regarding an interest rate hike in July. (Jun 09, 2008 7:12PM)

Jump in Unemployment Rates Signals Rate Hike to Come Later than Expected

It was a wild week in the Forex markets as two of the largest central bank leaders, Bernanke and Trichet, crossed paths momentarily with their views on interest rates and inflation, with the ECB winning out at the end. (Jun 06, 2008 7:16PM)

Trichet's Excessively Hawkish Comments Rally Euro

On Thursday, the European Central Bank decided to leave interest rates at 4%. This was not actually news as the market had been expecting this announcement. What the market was not prepared for was the excessively hawkish comments from European Central Bank President Jean Claude Trichet. (Jun 05, 2008 6:56PM)

Fed has its Eye on the Dollar

The Euro plunged after Fed Chairman Bernanke said the central bank is "attentive" to the level of the U.S. Dollar. (Jun 03, 2008 4:53PM)

Traders Lighten Up Long Dollar Positions Ahead of ECB Meeting

Although the European Central Bank is not going to meet until June 5, bullish Dollar traders were reluctant to add to their positions ahead of the meeting. Traders are expecting the ECB to keep rates at 4%, but they will be closely monitoring the comments after the meeting to see if there was any d... (Jun 02, 2008 6:16PM)

Dollar Gains Against Euro for Second Straight Month

Strong U.S. economic reports, lower crude oil prices, and hawkish comments from the Federal Reserve helped the U.S. Dollar gain versus the Euro for the second straight month. (May 30, 2008 6:35PM)

Ashraf Laidi

Sunil Mangwani

James A. Hyerczyk

Hans S. Nilsson

• Michael Woolfolk, economist at Bank of New York
• Thomson Financial News - "The dollar appears set for a period of renewed stability in 2008 as long as interest rate differentials and the US credit crisis do not deteriorate any further." Michael Woolfolk

• Katarzyna Zajdel-Kurowska, polish deputy finance minister
• Thomson Financial News - "The biggest threat for inflation next year remains fuel prices and rising global demand for agricultural produce. We can, however, assume that together with a likely fall in food prices in the second half of next year inflation will start to fall. It is clear that the recent rise in inflation is due chiefly to ri... Katarzyna Zajdel-Kurowska

• Robert Brusca, economist at FAO Economics
• Reuters - "This is still a big deficit even though we had some modest reduction. Some of that progress is due to the fact that imports have been restrained and the economy is weakening." Robert Brusca