San Francisco Fed: "This Recession Should Cause A Significant Decline In Core Inflation"

The San Fran Fed continues to voice a dissenting tone from the Ben Bernanke Inflation Party Line. Authors Weidner and Williams try to reconcile the lack of major deflationary pressure borne by significant unemployment. Their conclusion: the output gap is the likely variable, and could potentially be less then estimated by the CBO. The problem [...]

Australian Dollar Extends Gain as Rates Cut to Lowest Since 1964 (Bloomberg)

Feb. 3 (Bloomberg) — The Australian dollar strengthened after the central bank cut rates to the lowest since 1964 to help the economy avoid recession. The 1 percentage point reduction to 3.25 percent matched the median forecast from 20 economists surveyed by Bloomberg News. Read more….

Forint Slumps to Record on Recession, Breaks 300 Versus Euro (Bloomberg)

Feb. 3 (Bloomberg) — The Hungarian forint tumbled to a record low against the euro as the trade surplus shrank, fueling concern the economic slowdown will worsen. Read more….

Rand Trades Near One-Week Low Against Dollar on Growth Concern (Bloomberg)

Feb. 2 (Bloomberg) — South Africa’s rand traded near its weakest level in a week against the dollar on bets the biggest interest-rate cut in more than five years this week won’t help prevent Africa’s largest economy from sinking into a recession. Read more….

GBPJPY analysis – British Pound Dominates Against the Majors on Massive Retracement – Can This Continue?

The British pound was the strongest of all the majors not only on Friday, but during the entire week, as the currency trades in a highly speculative manner. Indeed, over the past 5 days, the British pound has rallied 8.6 percent against the New Zealand dollar and roughly 6.3 percent against the euro and Japanese [...]

Rand Posts Third Weekly Decline Against Dollar as Economy Slows (Bloomberg)

Jan. 23 (Bloomberg) — South Africa’s rand posted a third week of declines against the dollar, on more evidence the continent’s biggest economy is slowing while a deepening global recession makes investors wary of riskier assets. Read more….

Pound Hits New Lows as UK Officially Enters Recession

UK GDP data printed much worse than expected sending pound to fresh multi year lows as the report confirmed that the country has officially entered into its first recession since 1991. The UK GDP showed a contraction of -1.5% versus -1.2% expected as the full impact of the collapse of global capital markets has finally [...]

Yen May Approach Strongest Since World War II, Citigroup Says (Bloomberg)

Jan. 21 (Bloomberg) — The yen may approach the strongest level versus the dollar since World War II as the deepening economic recession encourages Japanese investors to bring money home, according to Citigroup Inc. Read more….

Rand Posts Third Weekly Decline Against Dollar as Economy Slows (Bloomberg)

Jan. 23 (Bloomberg) — South Africa’s rand posted a third week of declines against the dollar, on more evidence the continent’s biggest economy is slowing while a deepening global recession makes investors wary of riskier assets. Read more….

Currencies: British pound plummets as data show deeper U.K. recession (Market Watch)

The pound plunges to a 23-year low against the dollar, undermined as government data confirmed the U.K. economy fell into a deep and potentially long-lasting recession in the final three months of 2008. Read more….

British pound slumps to new multi-year low against US dollar (Nasdaq)

(RTTNews) – Friday, the British pound plunged to a new multi-year low against the US dollar after a report by the Office for National Statistics showed that the UK economy entered the first recession since 1991. The pound also declined to a 2-day low against the Swiss franc and the Japanese yen. Read more….

www.ONN.tv Currency Analyst Kevin Cook on the British Pound Breaking Down (Business Wire via Yahoo! Finance)

CHICAGO—-On his Thursday morning edition of “FX Overnight,” currency market professional Kevin Cook looked at the break down of the British pound sterling to multi-decade lows. This was an event that he had been watching unfold for several months during the credit crisis and global economic recession. Read more….

Euro-zone trade swings into surplus in October (AG Weekly)

BRUSSELS, Belgium (AP) – Euro-zone trade swung into a surprise surplus in October as the recession-hit 15-nation economy sees exports hit by a stronger euro and tumbling demand abroad, the EU statistics agency said Thursday. Read more….