http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-20.htmlThe ECB’s omnipresent desire to avoid the pitfalls of inflation caused by excessive money growth caused its president, Jean Claude Trichet to serve up a warning earlier this morning that it must pursue an exit strategy. His words, while not exactly new, turned a mediocre equity market recovery on its head and have caused a surge in the value of the dollar at the prospect of a further amelioration of growth. The euro tumbled half a penny to $1.4808 while dollar gains are evident across theFri, 20 Nov 2009 13:24:07 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-20.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-19.htmlOvernight comments in Asia from two Fed officials served to expand upon Monday’s keynote speech at the Economic Club of New York in which chairman Bernanke discussed the falling dollar. Dallas Fed president, Richard Fisher noted that the value of the dollar was but one of the inputs when setting policy and that a gradual decline was not likely to lead to inflationary pressures. His fear for a sub-3% growth rate next year was compounded by a more optimistic OECD assessment for global growth,Thu, 19 Nov 2009 14:25:26 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-18.htmlWhile the dollar managed to bully everything else lower on Tuesday especially after risk was discouraged by a poor showing from a gauge of homebuilders’ confidence, today it is once again on the defensive. The euro’s recovery has lifted it to a session high of $1.4972 ahead of Wednesday’s key homebuilding and consumer price reports. Ironically, analysts are seeking a boost to new home starts driven largely by government tax credits. If the data can carry the weight of expectations, it’s likelyWed, 18 Nov 2009 14:15:00 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-17.htmlMaybe Fed chairman Bernanke’s mention of the level of the dollar was unconventional when he addressed the Economic Club of New York on Monday, but it was very much in line with what treasury secretary Geithner has been saying all along. On the one hand the government understands the fact that the nation and its international fan base benefits when the dollar is potent. On the other hand the cataclysmic events of the past two years have been a real game-changer. In order to address theTue, 17 Nov 2009 14:17:59 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-16.htmlCommodity prices continue to accelerate to start the week after it appears that there was little hope that U.S. pressure on the Chinese authorities would allow for an appreciation of the Chinese yuan. The weekend APEC summit in Asia saw international leaders meet, with President Obama then flying off to Beijing, where limp expectations for a move from the Chinese were likely to be dashed. The picture of Chinese officials appearing to bow to international pressure is unlikely to sit wellMon, 16 Nov 2009 14:21:57 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-13.htmlThe dollar continues to build on gains from Thursday despite the fact that investors began to tiptoe back into riskier assets in the overnight session. During mid-morning New York trading the dollar has jumped and forcing currencies back to break even levels. The evidence of ongoing global growth was apparent in two data readings earlier but seems to be getting washed away by a broader dollar turnaround. The yen also shows significant strength today and has pushed the dollar back to ¥89.68 andFri, 13 Nov 2009 17:11:21 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-12.htmlA late in the week boost for the U.S. dollar finds its basis in the shrouded optimism of words of Chinese Premier, Wen Jiabao. His words on a televised state television interview were reminiscent of just about any other global financial leader when he pointed out that global economic recovery would be “a slow and bumpy process” and noted the uneven nature of world recovery. Asian stocks retreated after his cautious tone and risk preference took a back seat leading to a marginally moreThu, 12 Nov 2009 16:09:17 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-10.htmlThe dollar has stabilized on Tuesday after a raucous battle to begin the week. However, key influences helping the dollar stand up appear to be a series of known factors that may have only provoked light profit taking before the move can continue. With many currencies reaching new highs for this move recently and the dollar index reaching a 13-month low there is a reasonable amount of resistance towards a headlong lunge into fresh territory for now at least.   The Brazilian real paredTue, 10 Nov 2009 15:20:16 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-09.htmlToday investors are gorging on anything other than the U.S. dollar as a new feast of fourth quarter risk appetite gets underway. It took perhaps an hour to get over Friday’s sticker-shock in the shape of a 10.2% headline reading of unemployment before the dollar would lie back down. Over the weekend it took admission from the G20 that the world economy is “not out of the woods yet,” and a weekend report from the IMF noting that the dollar has moved “closer to medium term equilibrium” butMon, 09 Nov 2009 15:23:31 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-06.htmlWe’re not quite sure what all the fuss is about this morning when it comes to splicing and dicing the non-farm payrolls report. A 10.2% headline national rate of unemployment - the first in 26 years grabbed attention upon the announcement and created an avalanche of currency selling in favor of the dollar by investors. And how wrong they were! The actual payroll decline of 190,000 might have been 15,000 more than analysts were primed for but it was only the second time since August 2008 thatFri, 06 Nov 2009 18:41:15 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-05.htmlThe ECB was the last of the three major central banks to leave its short term benchmark rate unchanged today. On Wednesday the Fed reiterated the same message it conveyed in September by stating that policy would remain accommodative. With official short term yields steady investors focused on the posturing and variety of tones apparent within each statement. After today’s ECB press conference its president, Jean Claude Trichet tossed the challenge of a vulnerable dollar back into the court ofThu, 05 Nov 2009 15:39:07 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-04.htmlThe two low-yielding soft currencies (the dollar and yen) are lower today as FOMC decision day has finally arrived. We can now look back with the benefit of hindsight and say that the recent boost to the dollar and yen were due to worries over the prospects for the U.S. economy and how that might transmit less cause for other central bankers to push for removal of monetary stimulus. That causes a wider yield differential and harms the appeal of the dollar. Instead, dealers have concluded thatWed, 04 Nov 2009 16:15:56 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-04.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-03.htmlToday’s exchange rate movements are a little tough to decipher. Broadly speaking the dollar was well bid earlier, while the price of gold also jumped and is clearly mulling over the notion of making a thunderous bolt to the upside towards a record high. But a mid-morning event, that we are yet to isolate, has sent the dollar careening. Weakness in equity markets once again brings focus back onto the aftermath of the financial crisis. Further British government injections to the banking systemTue, 03 Nov 2009 17:08:12 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-03.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-02.htmlIt’s amazing the difference a weekend can make and once again as we situate ourselves this morning, it’s as if nothing ever happened last week. At the least one couldn’t really tell that equity markets came under severe stress and that broadening ranges jolted implied volatility into action. At the start of a busy week with the global focus on central bank decisions, the soother start has given dealers cause to soften their demand for dollars and yen and once again commodity dollars are back inMon, 02 Nov 2009 15:56:22 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-11-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-30.htmlNews on Friday included a decline in September’s reading of consumer spending, coinciding with the closing of the stimulus spigot. While this news should not be confused with a fresh downturn for the U.S. economy it is a little disappointing, while inviting further consumer stimulus in the first quarter of next year. It does show that the U.S. consumer can indeed be led to the well. And the report is pouring a little luke-warm water on Thursday’s strong GDP report and as it does so the dollarFri, 30 Oct 2009 16:04:05 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-29.htmlThe oversize rebound in the value of the British pound this morning indicates the reliance the globe has on U.S. led growth. Third quarter American GDP jumped at a 3.5% pace. Today’s data provided investors with a reason to breathe easier after several sessions in which they fretted about weaker growth ahead despite the fact that just about all S&P component companies are turning in A-plus report cards. The data caused the risk pendulum to reach its maximum extent and on the backstroke hasThu, 29 Oct 2009 15:06:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-29.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-28.htmlOngoing concerns over a budding recovery have pushed to one side the appetite for high yield and serve to punctuate a slide in the dollar. Investors watching recent increases in various measures of volatility and bond yields accelerated by a shifting emphasis to central banks’ exit strategies have heightened the expectation that an imminent market correction is well overdue. The rally in the euro nevertheless still looks as though it has life left in it as the single European currency treadsWed, 28 Oct 2009 15:11:55 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-28.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-27.htmlThe backbone to the United States economy took a nasty jolt in the shape of slumping consumer confidence in October. The reading of 47.7 fell well short of an improvement on September’s reading of 53.4. Investors reacted by selling currencies in favor of the U.S. dollar, which rose to a two-week high against the euro by breaching $1.47 for the first time since October 13. In all it’s taken just 24 hours for the dollar to reclaim the two cent gain that speculators took two weeks to build. TheTue, 27 Oct 2009 15:28:19 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-27.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-26.htmlMost currencies are higher versus the dollar to start the trading week although the dollar index is down a mere seven basis points to stand at 75.53. There are several contrary influences weighing on near-term direction, yet none seem persuasive enough to create a breakout from the recent range. With U.S. growth data due on later in the week the stakes were raised by Monday’s strong 2.9% GDP reading from South Korea – a whole percentage point better than was expected. This reminder that theMon, 26 Oct 2009 21:16:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-23.htmlA sixth consecutive quarterly decline in British GDP marked the longest recorded string of negative growth readings since records began in 1955. A 0.4% quarterly decline confounded expectations for a 0.2% gain and created an immediate slump in the value of the pound, which has lost almost three cents against the dollar at $1.6356 and has ceded almost a penny-and-a-half against the euro, which buys 91.15 pence. In Monopoly terms, Britain drew a “miss-a-turn” card from the Community Chest pile.Fri, 23 Oct 2009 15:55:06 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-22.htmlThe dollar took its cue this morning from Chinese government data showing that perhaps the domestic economy is chugging along comfortably after the impact of its $586 billion in stimulus efforts. But markets, being what they are, have twisted today’s bullish data into a risk-off recipe that allegedly draws attention to the role of the dollar as a safe haven. We’re not sure we concur with this view, yet remain content to watch the dollar extend gains after being bashed about for several daysThu, 22 Oct 2009 14:31:50 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-22.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-21.htmlSavvy investors could tell something was up earlier this morning as equity index futures pointed lower, while an earlier rally in the dollar index petered out. In typical knee-jerk reaction lower stocks should be followed by a stronger dollar as investors react to lower risk appetite. However, that argument is fast becoming untenable as earnings smash through expectations and equity market volatility slumps towards a reading of 20. The Vix has not traded below that value since August 2008. AWed, 21 Oct 2009 17:37:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-21.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-20.htmlWith global stock market averages fuelled by the lead of an American corporate earnings recovery it is the euro currency that continues to take the credit as it is drawn towards a 14-month high at $1.50 against the dollar. Futile attention to the dollar’s unruly decline drawn by various politicians and central bankers falls only on deaf ears in Washington, where it appears the authorities have every interest but no appetite for rescuing the dollar as yet. Earnings at Apple Inc. after theTue, 20 Oct 2009 16:12:20 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-20.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-19.htmlAt the Asian open the euro lost its way somewhat as a story grew in stature that European leaders would discuss the weakness in the dollar. As traders discounted the impotency of the group to stem weakness in someone else’s currency, the euro regained its footing and looks set to advance to $1.50 at some point this week. There was another strand of weakness that was accentuated when Philip Lowe from the Reserve Bank of Australia compounded the appeal of the Aussie dollar when he reiterated theMon, 19 Oct 2009 15:11:21 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-16.htmlThe U.S. dollar made a bid to end Friday on a high note on and take back earlier in the week losses against the euro. Strong American industrial output data this morning reminded investors that the recovery is underway and can on occasion surprise to the upside. Some sour earnings data from Bank of America and General Electric also helped remove some rationale for pounding the dollar as equity prices turned south as investors booked profits or simple tempered their outlook. The euro rallied toFri, 16 Oct 2009 18:48:01 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-14.htmlConsumers stepped back to department stores, furniture outlets, clothing chains and grocers during September creating a softer decline in retail sales than was anticipated. Analysts had expected a sharper retrenchment after the termination of the government’s support for the auto industry. After a 2.2% gain in August sales declined by 1.5% for September, but managed a 0.5% decline when autos are stripped out. The encouraging news on the health of the consumer was one factor in supporting aWed, 14 Oct 2009 15:56:37 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-14.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-13.htmlWhen Germany’s ZEW Center for European and Economic Research today released its index of investor and analyst sentiment, the immediate reaction to its unexpected drop was to sell euros. However, that response lasted mere moments before investors drove the euro up to its strongest price against the dollar since the Lehman’s collapse last year. The move underscores something we already knew about the dollar. It’s falling apart at the seams at a time when economic recovery is becoming heavilyTue, 13 Oct 2009 17:20:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-12.htmlIt’s Columbus Day in the United States, which means a quiet market with many investors at home to begin the week. From tomorrow the long grind to Thanksgiving begins during the fall. There is very little action to get our teeth into this morning. we should point out that Friday’s dollar revival based on Mr. Bernanke’s comments surrounding a normalization of interest rates has all but run out of steam against the euro. At $1.4786 the euro has recaptured much of Friday’s losses. As investorsMon, 12 Oct 2009 14:08:15 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-09.htmlAfter reaching a 14-month low point against its major trading partners, the dollar was in recovery mode on Friday morning as the dollar index rebounded following comments from the Fed chairman that interest rates would ultimately have to rise. In a week when the focus shifted to monetary tightening, those nations where monetary policy seems stranded on an island of weak growth and abundant capacity have seen currencies suffer. Mr. Bernanke’s comments offered the dollar the promise of a safeFri, 09 Oct 2009 15:03:02 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-08.htmlThe dollar index continued to feel the pressure from all sides late in the week as investors pay more attention to the almost daily records being set by the price of gold and as commodity producer steal the limelight after Alcoa’s earnings were in the black. Investors felt warmer waters around their feet as stock index futures were buoyed by earnings, European bankers’ decisions to maintain low rates and a healthier showing for the American jobs market. The euro strengthened to $1.4745 as itThu, 08 Oct 2009 15:13:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-07.htmlThere feels to be a numb sensation in the currency markets on Wednesday after a rip-roaring session the day before when commodity markets and related currency pairs had the flames stoked beneath them. The weakness in the dollar appears to have died down for the immediate future after a Fed official raised the salient benefits of removing monetary stimulus, while tales of Asian central bank intervention to bolster the greenback surfaced. The dollar-bear party may be over temporarily. The dollarWed, 07 Oct 2009 15:21:24 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-06.htmlNo, not July – but we refer immediately to the article in Britain’s The Independent newspaper, which on Tuesday laid the grounds for a rebound in commodity and stock markets as it “revealed” secret plans allegedly made by key officials from China, Japan, Russia and Brazil. The author claims that Persian countries are laying the foundations for a nine-year plan to exclude the role of the dollar in the pricing of crude oil. If you get chance we encourage you to study its content and style. SeeTue, 06 Oct 2009 15:18:57 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-02.htmlInvestors chose to be ‘shocked’ by Friday’s larger-than-expected rise in American workers laid off from jobs. Some 263,000 more workers were fired throughout September raising the rate of national unemployment to 9.8%. A rather nervous equity market was poised to react further to the downside, but as nerves settle in the aftermath it’s beginning to feel as though the panic has been somewhat magnified of late. Some may have feared that the next leg of the recession was just around the cornerFri, 02 Oct 2009 16:11:21 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-01.htmlFor want of a better direction today the dollar is advancing, spurred in part by comments from ECB top-dog, Trichet who made reference to currency volatility. That’s a polite way of complaining about strength in the euro as the dollar suffers from the fallout of growing risk appetite. Investors are scaling back dollar short positions in the event that concerns over the dollar’s health and role might be raised at this week’s G7 meeting. Some other data may have helped tipped Thursday into aThu, 01 Oct 2009 16:29:56 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-10-01.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-30.htmlA mid-morning report showing an unexpected reversion to economic contraction in the Chicago-area had the same impact on currency values today as the butterfly that flapped its wings in the Amazonian jungle. An earlier report showing a larger slowdown in the pace of GDP contraction had boosted the dollar and highlighted the appeal of higher-yield plays around the world. Chaos theory struck forex town as investors were thrown off the currency market rollercoaster before the dollar’s declineWed, 30 Sep 2009 16:34:33 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-29.htmlWe noted the toil and trouble in yesterday’s commentary faced by Japanese finance minister, Hirohisa Fujii as he tried to balance his comments about the currency. He may yet find that it’s his very own comments that are creating the level of volatility that he promised he’d address. The latest reported comment today indicates that he’d sanction intervention to come to the rescue of exporters disadvantaged by a stronger yen. At ¥90.10 the dollar is back on the rise today and has also added halfTue, 29 Sep 2009 15:08:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-29.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-28.htmlImagine a wise old Japanese acrobat balanced precariously above the circus ring with eyes watching in the event the old man loses his balance. His arms outstretched, he tries to reach one end of the rope before he loses his self trust forcing him to turn around, only to realize he’s equidistant from the other end of the rope. That seems to be the current position for Japanese finance minister, Hirohisa Fujii as he steadfastly walks the currency tightrope. The aging minister finds himself in anMon, 28 Sep 2009 15:18:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-28.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-25.v02.htmlEarly in the week dollar weakness marked by the lowest value for the dollar index in at least one year seems to have been resigned to irrelevance today. The euro’s earlier one-year high against the dollar has lost its significance as the broader market has turned in favor of dollar strength. The latest catalyst was a sour durable goods report, which has helped fuel risk aversion trades and completed a reversal in the dollar’s trading pattern this week. The midweek run on the dollar gaveFri, 25 Sep 2009 15:30:23 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-25.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-25.htmlWednesday’s revival in the dollar after investors parsed the FOMC statement clinically appears to have dissipated by Thursday morning. The Fed’s fine line confirmed that economic conditions have indeed improved but indicated that it was in no mood to remove its foot from the accelerator. However, a decent decline in weekly unemployment claims today has spurred enthusiasm that a recovery is underway and that a transitioning employment picture through the remainder of the year might yet gel theFri, 25 Sep 2009 05:42:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-25.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-23.htmlThe British pound continued this week’s claw back from the edge of the precipice having slumped on the view that the banking sector was in further trouble. The minutes from the September 10 Monetary Policy Committee meeting released today saw all nine voting members get back onto the same page and deliver a more ebullient take on the recovering economy. It wouldn’t surprise us to learn that at least some of today’s rally for the pound lifting the currency to $1.6420 was the exit of some ofWed, 23 Sep 2009 15:17:28 GMThttp://www.fxstreet.com/fundamental/analysis-reports/info@interactivebrokers.com (Interactive Brokers LLC)http://www.fxstreet.com/fundamental/analysis-reports/ib-fx-view/2009-09-23.html