| ECB and BoE meeting Review
As broadly expected ECB as well as the BoE, have both left their interest rate unchanged at 3.50% and 5.25% respectively. However, at the post meeting press conference, Jean-Claude Trichet, indicated that the ECB would raise rates on its March 8th meeting. Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the FOREX FORUM polls: ECB leaves rates unchanged as expected and BoE leaves rates at 5.25% Monetary policy decisions at ECB Bank Rate Maintained at 5.25% at BoE Review the opinion of our Forex Guru Tony Juste at The Advisor Blog. In-Depth Analysis The ECB can afford to wait by FX Solutions ECB Confirms Interest Rates to Rise in March by KBC Bank ECB: Trichet indicates March hike by Danske Bank A/S Morning Report - Euro remains firm following Trichet comments by Westpac Institutional Bank European and US summary - The euro rallies across the board after ECB signaled a possible rate hike in March by Forexnews.com Daily Fx Strategy - ECB Helps Euro, BoJ Hurts Yen by CMC Markets NY Mid-Day Forex Technical Report - Euro Still in Range after "Vigilance" from Trichet by ActionForex.com Forex Trading Strategies - BoE kept Rates at 5.25% by Saxo Bank Related News ECB leaves Key Interest Rates unchanged (FXstreet.com) Trichet issues strong call for wage moderation (AFX News) ECB Q&A:Inflation This Year "Already Done" In ECB Thinking -3 (Dow Jones) Trichet says still believes yen level should reflect Japanese economic recovery (AFX News) Trichet says ECB must exercise 'strong vigilance' on inflation risks UPDATE (AFX News) “Strong vigilance" on prices needed, according to Trichet (FXstreet.com) Euro steady, pound softer after ECB, BoE leave rates unchanged (AFX News) Euro Climbs Further On Trichet Comments (Dow Jones) BoE keeps key repo rate unchanged at 5.25 pct (AFX News) BoE skips Feb but spring rate hike stays firmly in view (AFX News) Analysts' Comments Ian McCafferty, chief economic adviser at CBI:"The Bank has decided that last month's surprise increase is enough for now and needs to assess the impact on inflation and the economy before deciding the next move.
Crooks Currency Group Launches Currency Option Service
DELRAY BEACH, Fla., Jan. 23 /PRNewswire/ -- Crooks Currency Group today announced the introduction of a weekly currency options research alert, Crooks Currency Options. Crooks Currency Options (http://www.crookscurrencies.com/) is the first service of its kind, providing retail customers with consistently winning recommendations on currency options covering major currencies against the dollar. Jack Crooks, Founding Editor for Crooks Currency Group, uses his nearly 20 years of experience in the currency, equity, and futures arena to provide specific buy entry, and sell exit recommendations. Subscribers will receive a weekly e-letter with market commentary and weekly position summaries. Additionally, subscribers can expect two to three recommendations for trading currency per month, depending on market conditions.
Viewpoint: Nobody's paying enough attention to the yen
Those of us paid in Japan's chronically weak currency should rest easy: Henry Paulson is on the case. The U.S. Treasury secretary said Jan. 31 he was watching the value of the yen "very, very carefully." Well, that's a huge load off my mind, especially as Paulson heads to Essen, Germany, for a meeting Friday and Saturday of the Group of 7 ministers. There, perhaps, Paulson's counterparts from Canada, France, Germany, Italy, Britain and even Japan will look very, very carefully over his shoulder as he watches the yen sit there — weakly — on his broker screen. Watch is probably all they will do. For one thing, the G-7's power isn't what it used to be. Without the inclusion of China, India and other developing powers, the world's industrialized elite has little influence over global trends these days.
Currency level leaves wool scourer with $1.2m loss
New Zealand Wool Services International (WSI) is in the red in its latest half-year, hit by the kiwi dollar and its currency-related trading positions. The Christchurch wool scourer and trader has reported a $1.245 million net loss, against a $570,000 profit in the same 2005 December 31 period. Managing director Michael Dwyer and financial controller Geoff Deakins said the kiwi peaking at more than US70c at December 31, 2006, meant WSI had to take unrealised losses. Deakins said the losses related both to currency hedging decisions, and losses on forward contracts yet to be paid for that had to be accounted for. The position could improve over time if the kiwi dollar weakened. "If the dollar comes back we may not make any loss at all, because on the 31st December the exchange rate was US70.60.
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