Forex News and Rumors

Yellen: Fed Ready to Tighten Rates When Needed

The Federal Reserve will act “decisively” when needed to tighten monetary policy and tamp down any prospects of inflation, a top Fed policy-maker said on Tuesday. More

Dollar May Weaken Near Term as Risk Appetite Revives, UBS Says

“Our near-term bias is for further U.S. dollar weakness,” Gareth Berry, an analyst at UBS in London, wrote in a report today. “We see the chance of risk aversion returning and hence a stronger dollar on a three-month outlook.” More

Woes continue for world carmakers

Carmakers PSA Peugeot Citroen, Daimler and Nissan have all reported big losses in the face of continuing declines in global vehicles sales. More

Bernanke’s dilemma: Ignore politics

After two years of pumping money into the financial system to keep the economy afloat, Fed Chairman Ben Bernanke will have to reverse the process or risk an opposite problem: inflation. After much anticipation, he announced in July the Fed’s “exit strategy” from its vast intervention, declaring it will happen “in a smooth and timely manner.” It’s reassuring that Fed officials are aware of the inflation risk, but their program is unlikely to succeed. Much research shows that it takes about two years for anti-inflation policy to work. That means the Fed needs to start now and stick with it. More

Chinese shares plunge as state intervention rumours sweep market

Chinese shares suffered their biggest fall in eight months today as rumours swept the market that the government was poised to intervene to end its recent rally.

The benchmark Shanghai composite index was down by as much as 7.7% in afternoon trading, despite huge interest in the flotation of China’s biggest housebuilder. The index eventually closed down 5% at 3266 points, its biggest daily decline this year. More

Shanghai leads share selloff in Asia

Stocks tumble after rallying the past 2 weeks. Shanghai index sheds 5%. Asian shares tumbled from multi-month peaks on Wednesday, in a sell-off led by the Shanghai market, as investors booked in profits ahead of more company earnings. More

Futures off as investors pause, commodities drag

Stock index futures slipped on Wednesday as investors paused to gauge if the recent market run-up will be sustained, while a drop in commodity prices looked set to weigh on shares of natural resource companies.

An overnight sell-off in Chinese stocks was likely to fuel some unease due to concerns that banks may begin to restrict lending there to take some of the froth off the market. More

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza