The New Zealand dollar strengthened today after the jobless rate improved and Alan Bollard, governor of the Reserve Bank of New Zealand, suggested that the central bank may increase the interest rates as the economy become “less fragile”. New Zealandâs jobless rate fell to 6 percent in the first quarter, compared to 7.1 percent in the previous three months, the lowest level since 1986. Bollard declared that: Financial markets currently expect the Reserve … “NZ Dollar Rise with Improving Jobless Rate”
Month: May 2010
Does Parity Between Loonie and Greenback Remain in Past?
The Canadian dollar continues to weaken against its U.S. counterpart as the turmoil in Greece increased the global demand for the safety and pushed down the appeal of the currencies tied to growth for investors. The loonie, as the Canadian currency nicknamed for the image of the aquatic bird on the C$1 coin, tends to follow the moves of the commodity prices and the stocks. The Standard & Poorâs 500 Index dropped 0.6 percent, while previously it fell 1.3 percent. June delivery for crude oil, the biggest … “Does Parity Between Loonie and Greenback Remain in Past?”
Fiscal Crisis May Spread Across Europe, Dissolving Euro’s Strength
The euro continues its decline on the speculation that the Greece’s budget crisis is worsening and may begin spreading to other countries, as was signaled by the prospect for the decrease of the Portugal’s credit rating. The Chancellor of Germany, Angela Merkel, said that “the future of Europe and the future of Germany” depends on the outcome of the Greece’s rescue. Axel Weber, the European Central Bank council member, supported the Germany’s contribution to the bailout package and voiced concern that the fiscal crisis contagion … “Fiscal Crisis May Spread Across Europe, Dissolving Euro’s Strength”
Greenback Advances Against Loonie on Greece’s Woes
The U.S. dollar rose to the highest level since March 26th against its Canadian counterpart as the speculation that Greece won’t receive the bailout drove the global risk sentiment toward risk aversion and increased demand for safe currencies. The fears about the budget deficit crisis weren’t contained by the prospect of the bailout and they are beginning to spread as the speculations suggest that not all European governments will support the bailout. In such an environment the risk … “Greenback Advances Against Loonie on Greece’s Woes”
EUR/USD Breaks Down on Contagion
Yesterday it was Spain and today its Portugal – EUR/USD broke below another important technical barrier and continues the free-fall. An update on European events and on technical levels for EUR/USD. Moody’s put Portugal on review for a credit downgrade. This took EUR/USD to the next level – the 1.2886 support line, which was the … “EUR/USD Breaks Down on Contagion”
Mexican Peso Drops as Crude Oil Tumbles
The Mexican peso tumbled today against the U.S. dollar as crude oil declined, dragging along with it the currencies tied to commodities, and with increasing global risk aversion sentiment. Mexico, being the second biggest supplier of crude oil in the world, greatly depends on oil prices, which dropped 4 percent to $82.74 a barrel today on NYMEX. The budget deficit problems in Europe negatively affect the global risk sentiment, also weakening the peso. … “Mexican Peso Drops as Crude Oil Tumbles”
Loonie Declined with Increasing Demand for Safety
The Canadian dollar dropped today against its U.S. counterpart to the lowest level in more than a month as the commodities and the global equities were affected by the concern about the European debt crisis. The doubts that the aid from the European Union will improve the situation in Greece and in the Euro zone in general drove the sentiment toward the risk aversion. Such pessimistic mood in turn influenced the commodity prices and the stocks, which fell and, as a result, caused decline … “Loonie Declined with Increasing Demand for Safety”
Euro Drops to Lowest Level Since April 2009
The euro plummeted today to the lowest level in a year against the U.S. dollar and dropped against other most trading currencies on the concern that the bailout for Greece won’t resolve the nation’s budget problems and the crisis will spread to other European countries. The speculation that the rescue package for Greece won’t be supported by all European governments saps the euro of its strength. The outlook for the European Central Bank to increase the interest rates by only 46 basis … “Euro Drops to Lowest Level Since April 2009”
Strong Recovery? Nonfarm payrolls preview
Yet again, expectations are high from the upcoming Non-farm payrolls release. Great expectations can turn into great disappointments, but this seems like a win-win situation for the greenback. Here’s what to look for from this release of the “king of forex”. According to economists’ estimations, American Non-Farm Payrolls are predicted to show another month of … “Strong Recovery? Nonfarm payrolls preview”
Aussie Falls on Prospect for Slower Pace of Rates Increase
The Australian dollar dropped against other most traded counterparts as the average borrowing costs suggest that the central bank may slow the pace of the interest rates increase. The benchmark rate was increased for the sixth time from October and, while the policy maker are willing to slow the record pace of the rates increase, they yet may be urged to continue the interest rates increase to rein the inflation. The economy of China, the biggest trading … “Aussie Falls on Prospect for Slower Pace of Rates Increase”