Peter Marsden's Forex Blog

Today the Yen has gained strengthened against all the major currencies. Against the dollar it has made an eighteen month high. The pair moved moved down around 400 pips on the day at the time of writing. Could this be the end of the yen carry trade? There is speculation that this could be the […]

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The dollar took another beating today making fresh 26 year highs and breaking through 2.10 against the pound. The euro made new all time highs against the dollar too. The trend is firmly dollar bearish currently. The move was on china’s decision to diversify there huge foreign exchange reserves into stronger currencies and away from […]

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Today we had the NFP. The initial number was considerably higher than the expected 82k, coming in at 166k. However, there was a downward revision to the previous number to 96k from 110k. The market viewed this as dollar positive. Cable sharply moved down around 50 pips in a couple of minutes. The cable bulls […]

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As you are probably aware the fed cut rates the fed funds rate yesterday by 25 basis points. This move was widely expected by many traders. The fed made it clear they are very reluctant to make any further cuts. This is not surprising with oil and other commodities near record highs. This is bound […]

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GBP/USD has just made a 26 year high. It managed to break through the resistance at the 2.0650 area.

As always, the market has moved on speculation. The speculation the Federal Reserve will continue to cut interest rates, whilst the Bank of England will leave them on hold. Mervyn King, the governor of the Bank of […]

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Cable resistance stands firm today. We saw a test of the 22/10 high of 2.0550 but resistance held. This made a double top. Shorts from this area should have done very well. Price has now been in a very tight range for almost a month. It looked like there may be a break out to […]

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The British CPI figure came out today. It came in at 1.8% which was lower than the forcasted 1.9%. It would appear this data has all but ruled out another interest rate hike this year, maybe even for next year as well. There is even speculation of a rate cut before the end of […]

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Mervyn delivered some good news to the carry trades involving buying the pound today. He said in his speech that he is reluctant to reduce interest rates to make life easier for lenders and he is still very keen to fight inflationary pressures, his goal is to keep inflation around 2%. Inflation in recent months […]

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Today’s NFP came in at 110k, the expected was 100k. However, there was a big upward revision to the previous month’s figure, -4k upto +80k. Price spiked down a lot on cable, around 100 pips or so in around 10 minutes.. infact nearly half this move was in the first 20 seconds after the release. […]

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Both the Bank of England and the European Central Bank (ECB) left rates on hold. This move was widely expected. This suggests unlike the Fed the ECB and BOE are not panicking about the current financial “crisis”. I use the word crisis loosely because on the grand scale of things, it’s no bigger than many […]

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