We expect December to be another active month for the foreign exchange market as central banks around the world take their interest rates to historically significant levels. There are 4 central banks with monetary policy decisions in the first week

As every trader with some longevity knows the first question you should ask the moment a trade is made is this: Where am I wrong? And that question needs to be repeated hundreds of times in your head throughout the

On the eve before Thanksgiving, the price action in the currency market has been very erratic. Equities rallied for the fourth straight trading session while the US dollar weakened against the Australian and New Zealand dollars but strengthened against the

New home sales dropped 5.3 percent in October to an annual pace of just 433,000 sales. The weakness in October was apparent across the economy and home sales did not escape the problems. The potential good news here is the

Personal spending fell 1% in October, the steepest fall in consumer spending in seven years. October saw the acceleration of stock market losses and the intensification of the global financial crisis. In that environment, and with job losses mounting and

U.S. durable goods orders declined by a massive 6.2% M/M in October, coming off the heels of a downwardly revised -0.2% M/M drop in September (originally reported at +0.8% M/M). This number is much worse than the market expectation for

Many U.S. economic data were released today ahead of tomorrow's Thanksgiving holiday. First, November personal income edged up 0.1% and the core personal consumption expenditures were unchanged in October and up 2.1% y/y. Second, October durable goods orders decreased 0.6%

The US Fundamentals are out, the durable goods fell massively to more than markets anticipated in October were the prolonged Credit Crisis managed to cripple the spending of individuals. Durable goods fell 6.2% from the previous 0.8% along with ex

Considering the lack of reaction from the US dollar, it is clear that traders are no longer surprised by the extent of the deep recession in the housing sector. On the other hand, while a slump may be priced into

Acting in their own interests and based on local economic prospects, more central banks cut interest rates today. The biggest move was a 108-basis point reduction in China's lending rate to 5.58%, matching the cumulative cuts of 27 bps each

Personal consumer expenditure (PCE) fell 1% in October, in line with market expectations and following a 0.3% decline in September. Personal income, however, rose 0.3%, beating forecasts for a 0.1% increase. The PCE deflator fell 0.6% with the year-over-year rate

You can take your pick from the myriad of economic reports released this morning but each is saying the same thing; the economy is in a recession which is likely to be the deepest and longest-lasting in the post-war period.

Overall the greenback is maintaining a steady to firmer tone compared to opening levels in Asia. Dealers are noting the FX market has shown little reaction to the raft of data released in the session, citing that the muted response

Price data released by Germany today exemplify a remarkable reversal of inflation trends and risks. Import prices dropped 3.6% in October on top of declines of 1.0% in September and 0.8% in August, and the 12-month rate of import price

U.S. consumers dug in their heels in October, with personal consumption expenditures falling by a massive 1.0% M/M, following the 0.3% M/M drop last month. This is the biggest decline in this indicator since the last recession, and was the

The US dollar is selling off against the Japanese Yen on the eve of Thanksgiving as weak economic data serves as a harsh reminder of the problems plaguing the US economy. With the shortened holiday trading week, there were a

The dollar gained strength against the majors as rally riskier assets subsides in early trading. The EurUsd fell a bit over 100pips to the mid 1.29 level, while the UsdJpy moved slightly lower to 95. The GbpUsd dropped 125pips to

The Chicago Purchasing Managers Index plunged in October to 33.8, its lowest level since April 1982 and another indication the recession is deepening. The price index declined toward neutral, reaching the lowest level since July 2003, order indexes reached 20-year

New home sales in the US fell 5.3% month over month to 433k units on an annualized basis. The market was expecting a more muted fall of 5% to 441k. The prior month's reading of 464k was revised down to

The savings rate in the United States historically runs around 6-8%, and that is less than the traditional savings rates found in Asia and Europe. In the early 1990's as the United States was emerging from recession, the savings rate