The South Korean won fell sharply against the U.S. dollar this week and reached its monthly low against the USD today despite the very weak dollars positions and the bullish trend in the Chinese yuan, which is the one of the dominating Asian currencies. The South Korean government officials are responsible for the strong pledges to support the weakening of the … “South Korean Won Slids Deep”
Month: April 2008
Yen Weakening against Euro, Pound
The Japanese yen continued its fall against the high yielding currencies today, especially against a very strong bullish euro, and reached 3-month minimum value against it, as the stock market rallies spurred carry trade popularity on Forex. The yen dropped also against the New Zealand and Australian dollars because of their high interest rate, which makes them the perfect counterparts … “Yen Weakening against Euro, Pound”
EUR/USD Comes Closer to 1.6000
The U.S. dollar fell down to another historical minimum level against the euro today, as the strong technical resistance has been breached and the fundamental economic statistics in U.S. has failed to keep the USD up on the Forex market. Apart from the bad data from the U.S. housing sector and the commercial crude oil inventories, additional fundamental pressure was applied … “EUR/USD Comes Closer to 1.6000”
Italy, France Unite against Strong Euro
Italys soon-to-be newly elected prime minister, Silvio Berlusconi, pledged to ally with the president of France, Nicolas Sarkozy, in his strife to persuade ECB to weaken the united Europes currency by the means of the intervention. Concerned with the weakness of the Italys exporters, Berlusconi is aiming to eliminate the prime reason for this the dollar-euro rate imbalance: A very strong euro is hurting Italys economy. I will discuss intervening with the … “Italy, France Unite against Strong Euro”
EUR/GBP Reaches New Absolute Maximum
Great Britain pound fell down to a new absolute minimum level against the euro today as the fresh economic data from U.K. signaled that the output growth will probably slow down significantly. The survey by the Royal Institution of Chartered Surveyors showed that more than at any time since 1978 (the year when they started to collect this data) of its members are reporting … “EUR/GBP Reaches New Absolute Maximum”
Dollar Retreats from Opening Gap Gain
The U.S. dollar has retreated from its impressive gain on this week opening on the Forex market and is now trading inside its usual recent daily bearish trend against the euro and the Japanese yen. The G7 meetings officials noted the global situation with currency rates volatility and the necessity of the actions against the fast depreciation of some currencies and the … “Dollar Retreats from Opening Gap Gain”
Dollar to Stop Falling after G7 Signals?
The U.S. dollar may probably slow down in its currently strong bearish trend against the other world currencies after the G7 meeting participants expressed their concern about the Forex market fluctuations. The housing and financial crisis in U.S., which is observed since Summer 2007, made traders believe that the worlds largest economy is heading into recession. The dollar cumulative index (DXY, … “Dollar to Stop Falling after G7 Signals?”
Chile to Buy U.S. Dollars to Weaken Peso
The Central Bank of Chile will be buying the U.S. dollars in 2008 in order to stimulate the economy by the weaker national currency. This year, starting April 14 Chiles central bank will be buying $50 million every day on the Forex market to increase the overal countrys currency reserves from current $18 billion to $26 billion. This step is rather controversial as the weakening of the peso will spur the consumer prices, while the … “Chile to Buy U.S. Dollars to Weaken Peso”
Chinese Yuan Closes Below 7 per Dollar
The Chinese yuan ended the domestic OTC trading session today below 7 yuan per U.S. dollar level for the first time since the end of the peg to dollar in 2005. After USD/CNY closed at 7.0016 yesterday, the exchange rate of the Chinese currency went up today and traded in the 6.9930-6.9907 boundaries on the OTC Forex market. Since November 2007, Chinas government is working to appreciate the yuan … “Chinese Yuan Closes Below 7 per Dollar”
BoE Cuts Rate, ECB Holds again
Both Bank of England and the European Central Bank acted as expected today during their monetary policy meetings BoE cut the interest rate to 5.00% and ECB left them unchanged at 4.00%. Facing the problems in the housing and the financial sectors of the economy, the Bank of England, decided to lower the interest rate from 5.25% to 5.00% today. Relatively low inflation allows them to use the interest rate cuts as the main tool to stimulate the economic growth. The European … “BoE Cuts Rate, ECB Holds again”