The U.S. Dollar (USD)

Michael Mussa, senior fellow at the Peterson Institute for International Economics
Fri, Sep 26 2008, 14:35 GMT

Dow Jones - "If it's going to become a permanent feature, then pretty clearly the Congress will insist that there be an alternative way of funding it. In that case, market participants could pay a regular fee to fund the insurance program. Relying on the Exchange Stabilization Fund as the source of funding for a permanent facility wouldn't be a good idea."

Peter Kenen, economics professor at Princeton University
Fri, Sep 26 2008, 14:32 GMT

Dow Jones - "The fund's size limits its ability to have a significant impact on the dollar. It is still rather small compared to the reserves of other countries. Plus, in times when countries have intervened in the market, the U.S. has mostly participated on a token basis. Treasury's decision to use the fund is unusual, but not necessarily improper or inappropriate."

Brian Bethune, economist at Global Insight
Fri, Sep 26 2008, 14:31 GMT

Dow Jones - "The Exchange Stabilization Fund is really in many respects redundant because it's not large enough to have really any impact on daily trading. With trillions of dollars exchanged every day in the markets, there's almost no influence the government can have on that kind of trading other than having a psychological impact."

Jessica Hoversen, fixed-income market analyst at MF Global Research
Fri, Sep 26 2008, 14:29 GMT

Thomson Financial News - "The last thing the Congress wants to do is to tank the stock market. The health of the global financial system is dependent on the U.S. coming with a (bailout) plan."

Ashraf Laidi, chief currency analyst at CMC Markets
Fri, Sep 26 2008, 14:28 GMT

Thomson Financial News - "This not only suggests that the role of the stimulus package had already faded in Q2, but also confirms a contraction in Q3 GDP due to the negative retail sales, industrial production, durables and housing figures in the quarter."

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The Euro (EUR)

Jose Manuel Gonzalez-Paramo, executive Board member at BCE
Fri, Sep 26 2008, 10:51 GMT

Reuters - "Monetary policy implementation has certainly become a more challenging task, but the ECB's operational framework has helped us to cope with the turmoil."

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank
Fri, Sep 26 2008, 09:15 GMT

Mizuho Corporate Bank - "Looking for direction with a tiny little ‘doji’ candle yesterday within a potential ‘flag’ formation. Expect more consolidation today around the 38% Fibonacci retracement area. If not today, then maybe next week, a weekly close above 1.5000 would be very bullish indeed forcing many into slashing newly placed dollar longs."

Lorenzo Bini Smaghi, European Central Bank executive committee member
Thu, Sep 25 2008, 14:56 GMT

Thomson Financial News - "I think the experience of the 70s, 80s and later (shows) ... that the best contribution that monetary policy can do for growth is price stability. A new more powerful, global banking regulator must be one of the results when the post mortem of the banking system is carried out after the credit crisis."

Tullia Bucco, economist at UniCredit
Thu, Sep 25 2008, 11:26 GMT

Dow Jones - "We expect both money and lending growth to continue easing in the coming months in response to slower economic activity and tighter credit standards. This should gradually tilt the ECB governing council toward easing monetary policy. However, we remain of the view that the start of the ECB's easing cycle won't happen before mid-2009, as the central bank will need to see wage dynamics cooling and inflation close to 2% before trimming interest rates."

Joaquin Almunia, EU economic and monetary affairs commissioner
Thu, Sep 25 2008, 11:25 GMT

Reuters - "For two years to come, I don't see new possibilities to enlarge the euro area."

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The British Pound (GBP)

Jason Simpson, fixed income strategist at ABN Amro
Fri, Sep 26 2008, 11:05 GMT

Dow Jones - "If these actions do see Libor rates ease ahead of the MPC meeting on 9th October, then this will give weight to arguments that the BOE should continue to view money-market liquidity provision as distinct from interest rate policy. This therefore reduces the pressure on the BOE to ease policy, either as an emergency measure or at their October meeting."

Geraldine Concagh, economist at AIB Group Treasury Dublin
Fri, Sep 26 2008, 11:02 GMT

Reuters - "A lot of the numbers out of the UK and euro zone are not great, so it's almost a case of 'who's worse'. We will also be getting closer to the October BoE policy meeting and that will be a bit more in focus next week."

Sheila Atwood, editor at the IRS
Fri, Sep 26 2008, 10:49 GMT

Reuters - "Private sector pay awards are heavily influenced by movements in the retail prices index inflation measure ... while RPI fell in August, pay settlers will be looking at how this downward path progresses before deciding the extent to which pay settlement levels can also fall."

Franco Shao, chief analyst at ForexCycle.com
Fri, Sep 26 2008, 09:17 GMT

ForexCycle.com - "GBPUSD pulls back to 1.8306 level. Further fall to test the support of the up trend line from 1.7445 to 1.7916 is still possible later today, a break of the trend line support will signal further decline to 1.8200 zone. Key resistance is now located at 1.8668, a break of this level will indicate that a short term cycle bottom has be formed, and further rally could be seen to 1.9000 level."

Paul Robinson, currency strategist at Barclays Capital
Thu, Sep 25 2008, 11:23 GMT

Reuters - "The next move (for UK interest rates) is down, but the timing is up in the air. We expect it to be in November, but it could easily happen in October."

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The Japanese Yen (JPY)

Omer Esiner, senior market analyst at Ruesch International
Fri, Sep 26 2008, 13:52 GMT

Reuters - "The collapse of negotiations on Capitol Hill yesterday combined with the failure of Washington Mutual have greatly increased investors' aversion to risk and it's no surprise that we're seeing the Japanese yen benefit as a result."

Geraldine Concagh, economist at AIB Group Treasury Dublin
Fri, Sep 26 2008, 11:01 GMT

Reuters - "There's a huge sense of uncertainty out there regarding the bailout plan in the U.S. I'm sure they will eventually come to some sort of agreement, but until then the yen is proving to be a barometer of market sentiment."

Susumu Kato, chief strategist at Calyon
Fri, Sep 26 2008, 10:45 GMT

Reuters - "I think core nationwide CPI will hit a peak in September as food prices will remain on a rise despite a slowdown in energy costs. I had thought it could peak in July or August, but food prices are rising more than expected. Core CPI will probably peak at 2.5 percent in September."

Takeshi Minami, chief economist at Norinchukin Research Institute
Fri, Sep 26 2008, 10:44 GMT

Reuters - "A slowdown in price hikes will give a sense of relief to consumers and companies, but the Bank of Japan is unlikely to raise interest rates until late next year, when financial turmoil settles and the global economy starts picking up."

Takumi Tsunoda, economist at Shinkin Central Bank Research Institute
Fri, Sep 26 2008, 10:43 GMT

Reuters - "The overall picture remained the same that high gasoline and food prices were pushing up core inflation. But as crude oil prices are going through adjustment, inflation may slow to below 2 percent by the year-end if oil prices stay at the current $100 level."

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The Australian Dollar (AUD)

Charles Wiggins, corporate risk manager at Custom House Global Foreign Exchange
Fri, Sep 26 2008, 11:20 GMT

News.com.au - "It seems like the Aussie dollar has come back into a range trading pattern. As soon as you get to $US0.8400 traders are looking at selling off and when it's getting below the $US0.8300s now people are starting to look to buy up."

Paul Brennan, managing director at Citigroup
Fri, Sep 26 2008, 10:58 GMT

Reuters - "The 25 basis point increase in bank funding costs in recent weeks reduces the likelihood that the banks will pass through the full 25 basis point cut in official rates the RBA might be contemplating. Consequently, more aggressive easing by the RBA may be necessary depending on developments in the U.S."

Jonathan Cavenagh, currency strategist at Westpac
Fri, Sep 26 2008, 10:57 GMT

Reuters - "The markets seem to be fixiated by the passage of U.S. bailout package. The longer this drags on, risk taking will come under more pressure, the flight to safety will continue and that could see the Aussie lose a bit more ground."

Tony Morriss, senior currency strategist at ANZ Investment Bank
Thu, Sep 25 2008, 11:21 GMT

Reuters - "The real economic implications of the credit crisis are weaker growth and greater uncertainty in coming months. That is not a good environment for the Aussie to outperform and so the move higher looks like a correction that will be limited in scope."

Harley Dale, chief economist at HIA
Thu, Sep 25 2008, 11:04 GMT

Dow Jones - "Further interest rate reductions have a vital role to play in complementing supply boosting policies, and a further rate cut at the start of October is imperative in the current fragile economic climate."

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