The Great Britain pound weakened today as the shop prices rose in June less than in may, adding to the concern that the budget cuts would slow the economic growth. According to the British Retail Consortium, the overall shop price index declined to 1.5% in June from 1.8% in May. Does that mean that the fears of the austerity measures strangling the economy proved true? We should yet to see, but for now, the sterling reacts badly … “Pound Falls on Concerns for Budget Cuts”
Month: July 2010
Yen Reinforced by Increasing Concern for Global Recovery
The Japanese yen gained today as the renewed concerns for the global economic recovery draws the investors to the relative safety of the Japanese currency. The Australian Industry Group construction index went down from 53.2 to 46.4 in June, signaling about a decline of the construction. Germany’s factory orders expected to increase by as low as 0.5 percent, compared to the previous reading of 2.8 percent. The uninspiring nature of the economic news put the traders’ sentiment in the risk-aversion mode, boosting the Japanese currency. … “Yen Reinforced by Increasing Concern for Global Recovery”
Canadian Dollar Gains with Rebound on Global Markets
The Canadian dollar rose today against its U.S. counterpart and some other currencies as the growth of the global stocks and the advance of the commodities increased the attractiveness of the growth-related currencies. The loonie, as the Canadian currency is commonly nicknamed because of the image of the waterfowl on the C$1 coin, as the currency, tied to growth, has tendency to rise and fall with the equities and the commodity prices. Therefore, today’s rebound on the global markets was positive for the currency. September futures for copper rose as much … “Canadian Dollar Gains with Rebound on Global Markets”
Dollar Falls as Stocks Gain & Concern for U.S. Recovery Grows
The U.S. dollar weakened today as the concern for the U.S. economic recovery and gains of the global stocks decreased the appeal of the greenback as the safe currency. The Stoxx Europe 600 Index rose 2.6 percent. The Standard & Poorâs 500 Index fell 5 percent in the previous week, following the 3.7 percent decline in the week before. The Dollar Index, declined last week for the fourth week, dropping to 84.427. The previous disturbing data make the market participants to worry … “Dollar Falls as Stocks Gain & Concern for U.S. Recovery Grows”
Fundamental Overview – Market Movers This Week – 7/5/2010
The U.S. Dollar had a mixed performance last week, rising sharply against the commodities currencies, where it gained 3.9% versus the Aussie, 3.6% against the Kiwi and a slightly less dramatic 2.5% vis-à-vis the Loonie. Nevertheless, the Greenback declined 1.5% and 0.9% against the Euro and Sterling respectively, and the Dollar also fell sharply against … “Fundamental Overview – Market Movers This Week – 7/5/2010”
Euro Recovers Slightly as Equities Rise
The euro rose today as the equities gained, increasing the willingness to risk among the investors and improving the general sentiment on the markets. The Stoxx Europe 600 Index rose for the first day in more than a week. The outlook for the euro remains pessimistic, though, as the European Central Bank continues to buy the government bonds to aid the European economy, prompting the traders to think that the shared 16-nation currency may reach parity with the greenback. EUR/USD traded near 1.2583 … “Euro Recovers Slightly as Equities Rise”
Aussie Rises on Optimistic Economic Outlook
The Australian dollar gained today after the Reserve Bank of Australia kept the interest rates unchanged and the report showed that the nation’s trade surplus grew. The RBA kept the overnight cash rate target at 4.5 percent and hinted that its benchmark rate may be kept unchanged in the near term. Glenn Stevens, Governor of the RBA, said: With the high level of the terms of trade expected to add to incomes and demand, output growth in Australia … “Aussie Rises on Optimistic Economic Outlook”
Euro Drops on Outlook for Interest Rates to Stay at Low Level
The euro halted its three-day rally today on the prospect that the European Central Bank would keep the interest rates at the current low level in the effort to reduce the negative impact of the budget deficits on the region’s economy. Jean-Claude Trichet, the President of the European Central Bank, stressed yesterday the importance for the European governments to reduce the budget deficits in order to improve the confidence of the investors and the consumers. The economists say that the European economy is currently too weak to justify … “Euro Drops on Outlook for Interest Rates to Stay at Low Level”
Zloty Rises as Komorowski Wins
The Polish zloty strengthened today after Bronislaw Komorowski won in the presidential election, spurring the hopes that his victory would help to reduce the nation’s budget and to adopt the euro in 2015. According to the final tally by the State Election Commission, Komorowski has won 53 percent of the votes. His victory may help to end divisions that appeared under the previous President, as Komorowski’s victory gives his Civic Platform party control both … “Zloty Rises as Komorowski Wins”
Significant Decline of Australian Dollar This Week
The Australian dollar experienced the significant losses this week on the concerns for the new mining tax, which, while eased somewhat, didn’t go away completely. The Aussie was falling against the U.S. dollar for the whole week, except for the Thursday, and ended noticeably lower than the opening level. Against the euro, the Australian currency has rose on Monday, but for the rest of the week it was steadily falling. The Australian dollar was also falling versus … “Significant Decline of Australian Dollar This Week”