Forex Trading TV Video Blog

Yesterday the greenback slipped sharply against most of the major currencies on the back of the news that the Fed has slashed the Fed Fund Rate and the Discount Rate by an additional 0.5%. The Federal Funded rate, which is the U.S inter-bank lending rate, was cut from 3.50% to 3.00%. While the Discount Rate, which is the rate at which U.S banks can borrow funds directly from the Reserve Bank, was slashed from 4.00% to 3.50%. The Fed has been continuously slashing the interest rate over the last few months in an attempt to stabilize the falterin... ( read more )

The greenback continued to take a hit as yesterday's New Home sales figure spurred speculation that the Federal Reserve will cut its benchmark lending rate by 0.5% this week to prop up the economy. The Fed will announce its rate decision tomorrow at the end of a two-day policy meeting. Interest Rate Futures reflect a roughly 90% chance of a 0.5% rate cut by the Fed this week. Short-term U.S. interest rates are already among the lowest in the developed world, encouraging investors to borrow in dollars and buy another currency to profit on th... ( read more )

As we begin the last week of January, investors will look to recoup from last week's volatility. Last week saw a host of important economic data, which would have contributed considerable volatility to the market on its own; however unexpected news was the main focus for traders. Firstly came Fed Chairman Ben Bernanke's unprecedented and unexpected rate cut of 75bp last Tuesday, this news took the downward slide in the dollar and Dow and reversed the trend. Secondly, was the news regarding fraudulent activity at French firm Societe Generale, wh... ( read more )

The USD continued to take a hit yesterday as the unexpected rate cut by the Fed led to a big gain for commodity currencies. The U.S. dollar hit the 1.47 level against the EUR and last traded at 1.4760. An improvement in investors' appetite for risk pushed the USD down vs. the high-yielding currencies such as the GBP and CAD. Yesterday, the greenback fell against the EUR as strong German business confidence data and tough inflation comments by the ECB official dashed hopes for the next interest rate cut in the Euro zone. The USD is also press... ( read more )

The greenback is floating in relatively quite waters, after the storm caused by the feds surprise cut of 75 points two days ago. When taking a deeper a look at the USD behavior post cut we can see that the reaction of the USD was in fact softer than one would expect from such a radical move that was not seen since 9.11. This could partly be explained by the fact that the cut was partly priced in, as the crisis was quite strong and traders were expecting a massive cut. Now there is a certain argument amongst some traders about whether the Fed... ( read more )