Weekly Analysis
IB FX View: Andrew Wilkinson, Senior Market Analyst

Wednesday 17th December 2008
A Message to the Dollar Bears
A sea-change seemingly swept the fortunes of the dollar right back onto the rocks Tuesday following the Fed’s de facto adoption of a zero-interest rate policy. The additional confirmation that it will also monetise the nation’s debt and ease monetary policy in a more quantitative fashion through the purchase of various government, mortgage and agency bond instruments is apparently the thing that rumbled dollar bears from their torpor . . . more
Daily Market Analysis & View Points
Market Comments: Lena Manousarides, Market Analyst, Spikecharts.com
New Year Starts with Dollar Strength!
The first full working week of the New Year has started, with the euro weak all across the board and especially against the dollar! The move came early this morning following comments by ECB members that the bank is ready to fight inflation and won’t let it stay above 2% for a long period of time. These comments were taken in their stride by traders who now are pricing in further cuts for the next meeting . . . more
Market Comments: John Hardy, Saxo Bank

Market Comment:
President-elect Barack Obama spoke last night about the stimulus package he wants to sign and implement post-inauguration. It now seems likely that the package will comprise USD775 bln worth of programs, including USD310 bln in tax cuts and other job creation schemes and infrastructure spending.
The USD rose in late NY on the back of this and has held onto gains . . . more
Market Comments: Mark O'Sullivan, Currencies Direct
Pressure Grows on Central Banks for Further Cuts …..
…. following the continued proliferation of very weak economic data. Cuts are already expected to emerge from the UK, Canada and Australia over the coming month and a growing conviction that the ECB will be compelled to reduce Euro rates significantly (they are already behind the curve and further inaction could prove extremely costly) following their meeting next week. The short term outlook for differentials therefore remain firmly in favour of the US Dollar its interest rates having already been cut by the Fed with a target level of zero . . . more
Market Comments: Jonathan Griffiths, Raphaels Bank

Euro Pressured by Inflation Data as Optimism Bounds for U.S
The Euro took a royal drubbing yesterday thanks to two key factors at work within the financial markets. The first spur, which rallied the Dollar considerably against the single currency, was jubilant sentiment over Obama’s Economic Stimulus Plan which outlined a massive series of tax breaks for Americans over the coming year. Investors took this news as extremely positive in the fight against deflation in the US and happily bought the Dollar as speculative and real income flows boosted . . . more
Articles & Features
Currency News