Economists generally and Dollar bears specifically both love to harp on the perennial US trade imbalance. Despite the halving of the trade deficit (reported by the Forex Blog last week), the gap between exports and imports remains sizable; it is projected at about a $350 Billion for 2009.
The more important data point, however, concerns capital [...]

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The U.S. dollar has weakened significantly driving many of the major currencies to the highest level in months. Here’s a table illustrating the significance of today’s moves. I expect at least another 2 percent decline in the U.S. dollar against the key currencies (Short and Long Term Outlook for U.S. Dollar).

The fact [...]

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During the global economic boom and concomitant run-up in energy prices, Russia’s foreign exchange reserves exploded. The subsequent bursting of the bubble, however, proved the maxim, what goes up must come down. “After reaching a record high of $597.5 billion in early August, reserves have declined dramatically as the central bank spent more than $200 [...]

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All of the action in the currency market today centers around USD/JPY. Over the past 24 hours, the currency pair has surged close to 2 percent, pushing all of the Yen crosses higher.
What Is Behind the Power Move?
It is no secret that the Japanese love yield. They were the primary buyers behind [...]

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I was on Fox Business talking about the outlook for the dollar. Its a one hour clip and I am on air starting at 39:00

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