Monetary Policy

The prospects that the Federal Reserve would begin slowing its purchases sparked a market meltdown in 2013. The "taper tantrum", as it was dubbed, destabilized the capital markets. Now it is as if the markets have had a second tantrum,...

Many participants seem confused. Despite the talk about the dollar by different Fed officials, dollar policy is set by the US Treasury. Secretary Lew has been clear. First he reiterated the 20-year old mantra of a strong dollar being in US...

The dovish FOMC minutes have pushed the consolidative tone into a dollar correction.  Asia and European markets extended the dollar decline.  These losses brought the greenback near initial retracement objectives or technical targets.    The euro approached $1.2800 before running...

Corrective forces continue to grip the foreign exchange market.  Many expect the dollar's downside correction/consolidation to end today.  Technically-inspired short-term participants often see 3-4 day counter-trend moves to be typical of market moves.  Fundamentally-inspired traders expect the FOMC minutes, which...

Corrective forces continue to take hold of the foreign exchange market. It is long overdue and does not appear to be sparked by fundamental developments per se. Many short-term momentum participants had jumped aboard what had looked (and behaved) a...

Every country has some type of monetary policy and while the concept is the same, the components of the policy vary.  The India Monetary Policy was actually developed during the 1990s as a means of lowering the annual inflation rate,...