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Martin Wolf of the Financial Times (quoted above) brings back the common comparison to Japan’s lost decade … in hopes of conveying the similarities between Japan then and the US now. Yes, the comparison is not new. Several months ago in an issue of The International Economy magazine, I read…

Consumer Price Index out of France came in at 0.3%, in line with its forecast and slightly better than the prior reading of 0.1%.  The EUR traded slightly higher on the back of the release as it pushes towards the 1.4500 handle.

The USD is trading lower as the impact of China tightening fades, GBP is supported by hawkish comments from BOE’s Sentance, Sentance said UK interest rates may have to increase this year, EUR trades higher despite report of weaker than expected German 2009 GDP with support from Asian central bank…

The dollar is once again is distress after a torrid Tuesday in which a visitor from another planet might have been excused for inaccurately predicting that Chinese growth had slowed remarkably. The move by the central bank to lift reserve requirements held by banks is aimed at curbing excessive lending…

The ECB is expected to keep the main refinancing rate unchanged at 1% in January. After announcing some liquidity withdrawal measures at the December meeting, the upcoming meeting will likely be a quiet one. President Trichet should describe current interest rates as ‘appropriate’ and the outlook for growth and inflation…

Following up with yesterday?s post, the EUR/GBP finally reached the support area, reaching 0.8915 before rallying ahead of the US session. I mentioned the likelihood of following previous price action at this area, and the market is showing this recurrence. The current candle (at 7:30AM EST) is rallying strongly, and…

The U.S. economy has been improving over the past few months, where several sectors around the economy started to show that activity was indeed increasing or at least stabilizing, though it will probably take some time before we start to see a strong rebound in economic activity, where elevated unemployment…

Cable rose during the day and we exited the Short early so as to avoid a higher loss. We lost 39 pips in the process. Till the Resistance at 1.63 continues to be overhead, we would be hopeful of an eventual decline towards the 55-week MA (1.5687). If the Resistance…

The market showed a tendency to move higher against the U.S. dollar during the Asian and the European sessions, but so far, the major pairs have failed to break out of the range of the prior few days of trading. One exception was the pound, which advanced 90 pips overnight,…

Sterling has pushed its way into the forefront this morning rallying as far as GBP/USD1.6265 and EUR/GBP 0.8916 this morning. The incentive for the move was an interview in the Guardian newspaper with BoE hawk Andrew Sentance. Asked if it were right to assume that BoE policy would be on…