Today's record high trade deficit number only serves to play up the market's concern about the large imbalance in the U.S. trade account,
The fact that yen weakened on the news means the market takes the Bank of Japan's pledge seriously.
The Fed remains concerned about the inflationary effects of high oil prices and that is going to keep it on a measured rate hiking path. In the near term, I think that is supportive for the U.S. currency.
The familiar combination of declining fundamentals and the market's perception that Tokyo wants to see a weaker yen was the catalyst for the Japanese currency's latest move down,
The pre-FOMC caution and lull in the marketplace appears to give traders little reason to put on aggressive positions, ... The Japanese yen extended its recent gains as the Mori government upgraded its assessment of economic conditions.
They talked the talk, now they have to walk the walk.
The sharp rally on Wall Street is filtering through the currency market and lifting the U.S. dollar.
That was an upside surprise in the headline PPI index. That's going to keep the Federal Reserve on track in raising interest rates at an incremental pace,
They are still vastly under-performing the U.S. economy,
This morning, the currency markets were just as nervous as the rest of the financial markets. As the stock market stabilized, so did the U.S. currency.
