The Bank of Canada this week noted that inflation would return to target sooner than expected, but if Friday’s inflation data proves to be unexpected, the Canadian dollar is likely to respond immediately.

Price Headley asks 10 questions to help traders plan their trades.

Today's gap up in the CurrencyShares Japanese Yen Trust (FXY) reflects yen strength as the currency heads for a test of the August-October support line.

Currency trading markets are likely to see extensive volatility in the week ahead, as forex speculators are largely unsure of what to expect from the weekend’s G7 summit in Washington, DC.

The British pound has been put into a holding pattern for nearly three weeks against its US counterpart as the market waits for a significant shift in fundamentals to usher the pair into the next leg of its trend.

The US dollar plummeted to fresh record lows on a trade-weighted basis, leaving the euro at all-time highs and the Canadian dollar just short of 33-year peaks. Traders sold the dollar on speculation that the upcoming G7 meeting would provide little guidance on the future of greenback trends.

Many expect more borrowing in 2008, as consumers struggle with tighter credit and potentially higher mortgage payments. Coast to coast, the story is the same. It is the story of an economy late in the credit cycle; it is the story of a downswing, not an up-swing.

The US dollar has strengthened because it tends to benefit in environments of rising risk aversion where we see traders and investors move back to cash and into the safety of the US dollar

It may only be a matter of time before the UK consumer will cut back on discretionary spending, especially as the effects of the Bank of England’s tightening cycle earlier in the year starts to come into play.

Things always go in cycles. Short cycles. Long cycles. But what you never quite know is where you are in the cycle.