News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX!
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here:
  • The US Dollar may seesaw as investors navigate what could be a volatile week packed with US GDP data, rising Covid-19 cases, Q3 corporate earnings and more. Get your #currencies update from @ZabelinDimitri here:
  • USD/MXN pushes lower towards a critical support level in the midst of continued political uncertainty. Get your #currencies update from @HathornSabin here:
  • Gold Forecast - via @DailyFX “Gold price outlook still hinges on stimulus deal expectations and corresponding swings in real yields.” What will I have my eyes on in the week ahead? Link to Analysis: $GC_F $XAUUSD $GLD
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Talks between the EU and UK restarted today and will continue over the weekend as negotiators from both sides battle against the clock. Get your #currencies update from @nickcawley1 here:
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here:
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
Guest Commentary: In a Parallel World, Iceland Hikes Rates to Battle Inflation

Guest Commentary: In a Parallel World, Iceland Hikes Rates to Battle Inflation

2012-06-15 04:00:00
Yohay Elam, Forex Crunch,

Many countries in the developed world have very low interest rates for a long time. The US, UK, Japan, Germany and Switzerland also enjoy record low long term yields.

However, a country on the edge of Europe, took a different approach in tackling banking issues, and is now raising the rates: Iceland.

Iceland is experiencing "robust" domestic demand according to its central bank. This is the main reason for hiking the rates by 0.25% to 6.75%. Inflation is also low due to the weak currency. The central bank also hopes that the currency will strengthen. Yet again, while many other countries are in a race to the bottom with devaluing their currencies, Iceland prefers a stronger currency.

Here's a quote from the rate statement, which is so different from other central banks' statements:

National accounts data for Q1/2012 are broadly in line with the Bank’s May forecast, which stated that GDP growth would continue to reduce the margin of spare capacity in the economy. The economic recovery is broadly based, and the growth in domestic demand is robust. Signs of recovery in the labour and real estate markets are steadily growing stronger.

Iceland had a bloated banking sector which collapsed at the end of 2008. Instead of pumping money into the banks, Iceland eventually let the banks fall. The economy fell as well, together with all the world, but recovered very quickly and is now experiencing growth and inflation.

In a week that sees Spain getting money for its banks, the comparison (which many Spaniards do) is staggering. So, Spain is following the Irish path of taking over the banks and seeing its finances and its people suffer.

Nevertheless, there are quite a few differences: Spain is a much larger economy, and is a member of the euro-zone, so it cannot devalue the currency to boost exports.

Further reading: 8 Holes in the Spanish Bailout

By Yohay Elam, Forex Crunch

Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.