Kathy Lien submits:
The biggest mover Wednesday morning is the Canadian dollar which has rallied close to 300 pips against the US dollar and is closing in on the 1.20 level. What’s behind the move?
1. Major merger and acquisition flow. Mexican breadmaker Bimbo closed on a .38 billion acquisition of U.S. Bread making unit [...]

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Kathy Lien submits:
On Friday, in my Daily Currency focus for FX360.com, I talked about the 3 Big Threats to the US dollar this week. One of them was a bad bank plan. Wednesday morning, Dow futures and higher yielding currencies are up sharply on news that Obama’s Administration has prepared a plan to create [...]

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Macro Man submits:
Will they or won’t they? That’s the question du jour, at least with respect to today’s FOMC announcement. There’s obviously nothing they can do on rates, so the big issue is whether the Fed takes the leap and announces a program to buy longer-dated Treasuries.
Such an outcome would hardly be [...]

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Matthew Bradbard submits:
(Click here for Part I and Part II.)
Currencies: The US dollar was up on the year, which we feel was for the wrong reasons. It was not because things were so rosy in the US, but rather that things were so terrible elsewhere. An unprecedented financial meltdown launched the dollar on its sharpest [...]

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Economists tend to downplay the deficit by citing the fact that the US was in much worse shape following World War II when the deficit was 109% of the GDP. It has been accurately pointed out that the U.S. Economy went on to become the darling of the industrial world and that we [...]

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