The U.S. Dollar gave even more of its recent gains last week after the Spanish bond auction eased market debt fears in the Eurozone and China announced its shift to a new exchange rate policy with greater flexibility. Also, European exchange rates traded correctively higher after much of the bad news for those currencies already … “Fundamental Overview – Market Movers This Week – 6/21/2010”
Month: June 2010
Demand for Safety Drives Japanese Yen Higher
The Japanese yen rose today on the speculations that European crisis strengthens as some E.U. banks face the funding problems, increasing the appeal of the yen as the safe currency. Christian Noyer, the European Central Bank governing council member, said yesterday: some banks have started facing increasing funding problems. The situation reflects a general state of uncertainty which, left unchecked, could have significant consequences on financial stability. The Great Britain is … “Demand for Safety Drives Japanese Yen Higher”
Yuan Retreats as Central Bank May Intervene to Curb Gains
The Chinese yuan retreated today, after it gained yesterday on the signals of the end for the dollar’s peg, as China’s central bank might intervene to curb the currency’s appreciation. Yesterday China signaled that it may allow more flexibility in the exchange rate of its currency to deflect the accusations of its trading partners and to keep in check the growing inflation. The Peopleâs Bank of China prefer the gradual appreciation, though, and ready to curb any “excessive” gains. USD/CNY … “Yuan Retreats as Central Bank May Intervene to Curb Gains”
Loonie Falls vs. Greenback, Strengthens vs. Euro & Yen
The Canadian dollar fell against its U.S. counterpart today on the renewed concerns about the European debt crisis, but sustained its gains versus the euro and the Japanese yen after China signaled that it might end the yuan’s peg to the U.S. dollar, bolstering the confidence in the growth-linked currencies. On the positive side today we have, together with the news from China, rising commodity prices. Crude oil traded near $77.54 … “Loonie Falls vs. Greenback, Strengthens vs. Euro & Yen”
New Zealand Dollar Profits from Stronger Yuan
The end of the two-year yuan’s peg to dollar weakened some currencies and strengthened others; among later can be the New Zealand dollar. The New Zealand currency already benefited from the fast growth of China’s economy as China is one of major trading partner of New Zealand. The stronger Chinese economy means more imports in China, this in turn means more profits for New Zealand exporters. The stronger yuan also should help … “New Zealand Dollar Profits from Stronger Yuan”
Dollar May Benefit From End of Yuan’s Peg
The U.S. dollar strengthened today on the speculation that there will be less demand for the non-Asian currencies after China relax its two-year peg. This move should weaken the currencies, which benefit from the reserves diversification, especially the euro. The Peopleâs Bank of China said that there wouldn’t be large-scale moves, the currency will be gradually allowed more flexibility. EUR/USD traded near 1.2396 as of 11:52 GMT today … “Dollar May Benefit From End of Yuan’s Peg”
Yuan Gains as Its Dollar Peg Expected to End
The Chinese currency appreciated today against the dollar as China relaxed the yuan’s peg to the U.S. currency, the move which should stop blames for unfair trading advantage, brought by undervalued currency, from the U.S. President and other G-20 leaders. According to the opinion of the Peopleâs Bank of China, the stronger yuan should help to reduce the inflation and turn the investment from the manufacturing to the service industries. The economists say that the appreciation may be slow but sure. … “Yuan Gains as Its Dollar Peg Expected to End”
GBP/JPY Outlook – June 21-25
The Chinese government finally made its move and promised to let the Chinese yuan trade more freely – appreciate against the dollar. This announcement on the weekend will have a positive impact on the Japanese yen across the board. The most interesting cross is GBP/JPY. Here’s an update on the situation and on the technical … “GBP/JPY Outlook – June 21-25”
Bad Week for Dollar as U.S. Economy Showed Signs of Weakness
This week was rather frustrating for the U.S. currency, which dropped versus most other major currencies, as the confidence about the U.S. economic growth was damaged by the signs of the economic recovery’s weakness. The euro rebounded after the previous losses against the dollar steadily, even though it experienced slight decline on Wednesday and Friday. The moves against the Great Britain pound were significantly more volatile, yet the week ended in losses for the greenback … “Bad Week for Dollar as U.S. Economy Showed Signs of Weakness”
Canadian Dollar Goes Up as Oil Prices Rise
The risk appetite improved, boosting the equities, today and the Canadian dollar benefited from this, though the rising oil prices perhaps contributed to the loonie’s strength even more. The Dow Jones Industrial Average rose 0.2 percent through the day and 2.4 percent over the week. Crude oil futures advanced 0.9 percent to $77.45 per barrel on the New York Mercantile Exchange. The Canadian currency, which is often called the loonie because … “Canadian Dollar Goes Up as Oil Prices Rise”