The dollar has posted its third week of losses against the euro, mainly due improved world financial conditions, shrinking demand for refuge currencies. A report to be released in the U.S. is expected to show that employers are cuttings jobs at a slower pace, which would decrease demand for refuge currencies, such as the greenback. The depreciation of the dollar was also heavily influenced by the ECB … “Dollar Slides Against Euro Before U.S. Job Reports”
Month: May 2009
Euro Rises Slightly After ECB Interest Rate Cut
The euro had a slight rise against the dollar after the European Central Bank cut its benchmark interest rate to 1 percent, a record low for the European economic bloc. The speculations that the ECB would cut its rates were confirmed today after the European policy makers set the interest rate to 1 percent in the Eurozone, an effort to avoid the current severe … “Euro Rises Slightly After ECB Interest Rate Cut”
Australian Dollar Hits 7-month High on Favorable Employment Data
The Aussie rose against the yen after a regional jobs report in Australia showed an increase in employment conditions and data. The yen had a day of losses against the main currencies in Oceania, after continuous evidences that the global financial situation may be improving, pushing investors towards high-yielding assets and decreasing the risk aversion sentiment on equity markets. In Australia, after a report showing gains … “Australian Dollar Hits 7-month High on Favorable Employment Data”
Oil and Stocks Push Canadian Dollar Down
The loonie weakened for the first time in six days as the crude oil price fell, making Canadas currency to drop from a 6-month high. The Canadian currency has been posting consecutive gains against its North American counterpart since November, and this week negative market prices associated with the loonie, combined with speculations that the government may take measures for … “Oil and Stocks Push Canadian Dollar Down”
Yen Strengthens as U.S. Banking Funds Concerns Arise
The yen and the dollar rose against the euro after U.S. regulators affirmed that the Bank of America Corp. will need more than $30 billion in new capital, spurring demand for refuge currencies. The Japanese currency climbed against all major currencies for the first day since last week, when improved economic conditions around the world boosted the attractiveness … “Yen Strengthens as U.S. Banking Funds Concerns Arise”
British Housing is also Recovering
British Construction PMI was a huge surprise. Adding to previous figures, British housing is clearly off the bottom. The Pound rallied after this release. British Construction PMI jumped to 38.1 points, much much better than last month’s 30.9, and also far better than early expectations which stood on 31.9. This huge leap in Purchasing Managers … “British Housing is also Recovering”
Brazilian Real Hits Six-Month High as Commodity Prices Rise
The Brazilian currency has been rallying against the dollar since risk appetite has increased last week on global markets, a rise in commodity prices and the domestic stock market helped the currency to strengthen. Brazils real and the South African rand are the two best performing currencies since the optimism has returned to global financial markets, which made traders leave refuge … “Brazilian Real Hits Six-Month High as Commodity Prices Rise”
Euro Weakens on Rate Cuts Speculations
After consecutive days rallying against the dollar and the yen, the euro fell on speculations that the European Central Bank will cut its interest rates to stop the deepening recession to cause more damages in the blocs economy. The European Commission declared yesterday that the Eurozone economy will contract around 4 percent this year, a more pessimistic forecast than previous ones, which … “Euro Weakens on Rate Cuts Speculations”
South Korean Won Hits 4-Month High Against U.S. Dollar
The South Korean currency has been favored since the beginning of the year by both domestic and international signs of improved economic conditions. The South Korean stocks rallied this Monday pushing the national currency up as extremely favorable economic reports were released in both local and international markets. The national central bank injected less than forecast foreign currency in the domestic market, … “South Korean Won Hits 4-Month High Against U.S. Dollar”
Global Slump Ending Speculations Weaken Yen
The yen continued the bearish trend which started last week when positive economic news pushed the equities market up, decreasing demand for the low-yielding Japanese currency. The yen will be soon entering the second week of losses against the euro and hit a six-month low against the Australian dollar, as growing optimism attracts investors to higher-yielding assets. The U. S. dollar, considered … “Global Slump Ending Speculations Weaken Yen”