A picture is truly worth a thousand words. [That probably means I should stop writing lengthy blog posts and instead stick to posting charts and other graphics, but that's a different story...] Take a look at the chart below, which shows a handful of emerging market (“EM”) currencies, all paired against the US dollar. At [...]

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In shifting their focus to interest rates, forex traders have perhaps overlooked one very important monetary policy event: the conclusion of the Fed’s quantitative easing program. By the end of June, the Fed will have added $600 Billion (mostly in US Treasury Securities) to its reserves, and must decide how next to proceed. Naturally, everyone [...]

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The Fed just released the April FOMC statement and I have highlighted all of the changes. As you can see, the only major change is their acknowledgment of inflationary pressures. Unfortunately they still believe the effects of higher prices will be transitory which means that rising prices are not enough to convince them [...]

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Sometimes I wonder if I’m living in the clouds. All of my recent reports on the Canadian dollar were twinged with pessimism, and I argued that it would only be a matter of time before reality caught up with theory. While the continued surge in commodities prices has confounded everyone’s expectations, other economic trends continue [...]

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I was on the Business News Network this afternoon talking about the Fed FOMC meeting and the outlook for the U.S. dollar, CAD, AUD and other pairs. Click on the image to access the video
Sorry for the Radio Silence lately but I have been working hard on my new presentations for Singapore - leaving [...]

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