Well, on the last post I shared with you how skeptical I was on that last EUR/USD rally and why. The reason: The USD/CHF didn’t correspondingly break below support as EUR/USD broke above resistance.
On top of that, central bankers have been reiterating their thoughts on the latest G-7 meeting which brought out the point [...]

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Today is a particularly quiet day in the markets – traders and investors the globe over are waiting anxiously for the Fed’s decision coming later this afternoon.
So we thought we’d take just a second to review one of the great mysteries of the foreign exchange market – the “pip.”
It is the smallest price change [...]

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From Our Friends at EverBank…
The FOMC wasn’t the only central bank meeting yesterday, the Bank of Japan announced they would leave rates unchanged. This was again largely expected by the markets, but some of the accompanying language showed their concern with inflation.
The BOJ predicted inflation would accelerate but also cut its economic growth forecast. [...]

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Let’s take a closer look at this recent breakout of the EUR/USD. (Click on the image below to enlarge it.)
The chart on the right shows the EUR/USD’s breakout higher towards 1.60. In fact, it got within 20 pips or so from that round figure. So tomorrow, the media will probably go ahead and call [...]

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Two central banks recently “tipped their hand” and basically told you they were going to ensure their currencies appreciated so that it’s rise would help “rein in” inflation.
What are these two currencies that are the surest bets (as sure as investing gets anyway) out there in all of currency land? Drum roll please…….
They are [...]

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Wow! What a morning. First, General Electric’s (GE) earnings came out before the bell and they MISSED earnings. Man, I don’t know of the last time that I heard of GE missing earnings and by so much. The stock dropped almost 5 dollars a share.
Then Goldman Sachs did the “unheard of”….they gave a sell [...]

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The pound gets ready to meet its fate tomorrow as the market widely expects a rate cut. The pair is barely hanging on to its latest support level by a thread.
If this breaks, you’ll see this descending triangle push lower very quickly tomorrow. A rate cut would be all it would take to send [...]

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The Eurozone and the U.K. economies continue to diverge.
For years and years, these two economies followed each other up and down in “lock step”. Then the credit/sub-prime crisis hit. This pushed the U.K. economy lower as they experienced the same things that America experienced: Hedge fund blow ups, banks struggling, housing prices falling, etc. [...]

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Currency traders thought they had it made. But just as they got used to
making their “easy money” one way bets on the euro, the unkind markets
stepped in and “spooked” them.
Let me explain.

Thursday morning, April 3rd, the European Retail Sales numbers
unexpectedly dropped to -0.5 percent. Economists were only expecting a
0.2 percent drop — if [...]

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Gold begins to weaken as gold traders know the IMF “gold sale” is nearing.
The technical picture is also breaking down. Gold broke the green uptrend line, traded below the 50 period moving average and has only been able to trade back up to this area and use it as a ceiling.
Meanwhile, the MACD [...]

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