Peter Marsden's Forex Blog

As widely expected the bank of england cuts the bench mark rate to 5.25%. The pound had a big negative day against the dollar.
The european central bank left rates on hold at 4%. However, Jean Claude Trichet did signal that there could be rate cuts in the future. This is the first time he has […]

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We have certainly had a volatile few weeks in the forex market. Many of the other financial markets have also been very volatile as well, especially the dow jones. We have seen some emergency actions from the federal reserve to try and prevent a stock market crash and a recession in the United States.
The benchmark […]

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What a couple of weeks it has been in the forex market. We have had a lot of volatility on the run upto Christmas. Historically, December has often produced many surprises in the market as many of the big players are out so volumes are lower. We have seen many central banks cut interest rates […]

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The Canadian central bank unexpectedly cut interest rates today in a bid to support economic expansion. Exports have been threatened due to the strong currency. Today the Canadian Dollar fell sharply against all the major currencies. USD/CAD moved up a sharp 70 pips or so in the first minute on the news release. Could […]

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Good day for the stock markets today, The dow is currently up around 3%. The British FTSE is also closed well up. Investors and speculators appear to be less risk adverse at present. This reduced risk adversity seems to have spurred on the carry trades. The Japanese Yen and Swiss Franc have fallen sharply today […]

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Lots of data out today. Firstly this morning we had the German Ifo Business Climate Index which came in above expectiations at 104.2. Also, the US national home price index which was slightly better than expectations coming in at -4.9. We also had the US consumer confidence which some times provides a big move coming […]

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As you are probably aware, The Japanese Yen and Swiss Franc has been used to fund carry trades a lot in the last few years. It has been highly appealing due to Japanese benchmark currently being 0.5% and the benchmark rate in Switzerland only 2.75%.

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Today we had the MPC meeting. This is a report that releases the results of the vote regarding the Bank of England base rate decision. There are nine members on the committee and the vote was 7-2 in favour of no change. This was inline with expectations. However, the pound did fall on the news. […]

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The Bank of England released a bombshell today. They signal led there is room for at least one interest rate cut in 2008. They currently believe this may be necessary to encourage growth without leading to increased inflationary pressures. This is a very different picture the bank is painting to that of just a few […]

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Today the British CPI numbers came out. CPI year on year came in at 2.1%, higher than the expected 1.9%. This all but ends any speculation that the Bank of England will cut rates this year. Personally I expected a surprise to the upside this time because of surging oil prices. The full extent […]

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