Forex Investment and Currency Trading

US stocks fell in the last hour of trading yesterday with the S&P finishing the day down 0.9%. While earnings so far have generally beat to the upside by a healthy margin (16% on average as of last count), the magnitude of revenue beats has been significantly lower and among firms catering to end demand, the median revenue surprise has been zero.
In the UK, yesterday’s MPC minutes revealed a less dovish tone. The MPC stressed that the effect on asset prices from the QE program has been substantial. In addition, the MPC noted that the resilience of employment in the [...]

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Fed Chairman Bernanke’s speech last night on the Fed’s balance sheet and this morning’s press reports that the Fed has begun conducting small-scale tests of reverse repo trades have prompted much market discussion about the timing of the Fed’s exit strategy. A few points:
Fed Chairman Bernanke noted that “accommodative policies will likely be warranted for an extended period,” which is slightly different than the latest FOMC statement that said “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” Bernanke may have changed the statement to “accommodative policies” from “exceptionally low levels [...]

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Dallas Fed Fisher: Policy reversal could be swift “When it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity to that with which we pursued monetary accommodation,” Fisher said in remarks prepared for a speech to the Texas Christian University Business Network of Dallas. For now, Fisher expressed “cautious optimism” about the economy in general and the housing market in particular. There is some concern that the hope for a housing rebound could succumb to the headwinds experienced earlier if the efforts of fiscal [...]

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After struggling under the weight of the intense global economic recession and financial crisis, the Canadian economy appears to be well and truly on its way to recovery – albeit one initially driven by the significant monetary and fiscal stimulus added to the system. In July, market expects the Canadian economy to post its second monthly GDP gain in a year with a respectable 0.4% M/M advance, following the 0.1% M.M gain the month before. The key factor driving economic activity higher in July should be strong manufacturing sector production, which boasted its biggest monthly performance (in real terms) in [...]

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