EU Rescue Plans Undermine Oil — Canadian Dollar Sinks

The Canadian dollar fell today to the weekly low against its U.S. counterpart, erasing its gains this week, as the concerns about the debt crisis in the European countries erode the demand for the raw materials, including oil. June delivery for crude oil tumbled as much as 2.3 percent to $72.72 per barrel on NYMEX. Crude oil is the key export of the nation. The European troubles are resounding throughout the global markets, negatively affecting the trade. … “EU Rescue Plans Undermine Oil — Canadian Dollar Sinks”

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Central Bank May Prevent Swiss Franc’s Appreciation

The Swiss franc dropped against the U.S. dollar for the fifth consecutive day and fell versus the euro after the four days of the appreciation on the speculation that the central bank will intervene to prevent the currency from advancing further. The franc reached the record high level yesterday as EUR/CHF traded at 1.4071. The Swiss National Bank has begun selling the currency in 2009 in order to aid the economy and contain the deflation. The bank may continue this policy, but … “Central Bank May Prevent Swiss Franc’s Appreciation”

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European Woes Bring Down New Zealand Dollar

The New Zealand dollar dropped today as the retail sales were lower than the analysts predicted and on the concern that the European debt crisis will dump the demand for the riskier currencies. New Zealand retail sales rose 0.5 percent compared to the month earlier, while the experts expected the 1.1 percent increase. The uncertainty about the European economy and the impact of its troubles on the global markets makes the traders nervous and the consumers less willing to spend their … “European Woes Bring Down New Zealand Dollar”

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Sterling Drops on Consumer Confidence and Budget Cuts

The Great Britain pound fell today against other most-traded currencies as the consumer confidence hasn’t recovered after it tumbled in March and on the concern that the budget cuts, planned by the new government, may curb the economy’s growth. Nationwide Building Society’s consumer confidence index rose by one point to 74 in April, while it previously had sank to 73 points in March from 83 the month earlier. The budget deficit was at the record … “Sterling Drops on Consumer Confidence and Budget Cuts”

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Rising Employment Value Strengthens Aussie

The Australian dollar gained against its U.S. counterpart and rose versus the euro after the government reported that the number of people employed in Australia increased more than expected. The employers added 33,700 (0.3%) to 11,025,500 jobs in April. This report sparked the speculations that the Reserve Bank of Australia will continue to increase the interest rates on order to keep the inflation in check. The central bank has raised the benchmark rate six times since … “Rising Employment Value Strengthens Aussie”

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Rand Weakened by Concerns for Demand & Interest Rates

The South African rand weakened today amid the concerns that the fiscal crisis in the European Union will afflict the pace of the global economic recovery, damping the demand for the riskier assets. The rand also weakened on the uncertainty as to whether the central bank is going to keep the interest rates at the current level. The bank already has cut its main rate seven times since December 2008 to aid the country’s economy with the recovery from the recession … “Rand Weakened by Concerns for Demand & Interest Rates”

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Industrial Expansion Aids Mexican Peso

The Mexican peso gained today as the industrial production expanded more than expected signaling about the increasing pace of Mexico’s economic recovery. The industrial production in Mexico expanded 7.6 percent in March from the previous year. This added confidence in the currency of the country, which economic recovery was a bit slow recently. The yield on Mexican 10 percent peso bond maturing in 2024 dropped 0.04 percentage point to 7.64 percent. USD/MXN traded … “Industrial Expansion Aids Mexican Peso”

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Rising Global Stocks Push Loonie Up

The Canadian dollar extended its advance against the U.S. currency today for the fourth straight day as the rising global equities increased the appeal of the currencies tied to the economic growth. The Standard & Poor’s 500 Index rose by 1.4 percent today and the S&P/TSX Composite Index increased 1.6 percent. The Canadian currency is supported by the expectation that the Bank of Canada will raise the interest rates as soon as June 1st, making Canada the first country … “Rising Global Stocks Push Loonie Up”

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