The Swiss franc weakened today versus the U.S. dollar and the euro as the U.S. and the European economies show signs of recovery, damping demand for the franc as the safe currency and drawing the investors to the riskier assets. The MSCI World Index of stocks and futures gained 0.3 percent. The economists, including Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, think that it’s too early to talk about increasing the stimulus, which is already significant, by the Federal Reserve. … “Swiss Franc Falls as Stocks Rally and Recovery Continues”
Month: July 2010
Yen Weakens on Signs of Recovery
The Japanese yen declined today against the U.S. dollar and the euro as the signs of the economic recovery in the U.S. prompted the investors to leave the safe currencies in favor of the higher-yielding ones. The Dow Jones Industrial Average rose by 1 percent yesterday after FedEx Corp., the second-largestpackage-shipping company in the U.S., raised its earnings forecast for the quarter and for the year. The forecasts also suggest about improving consumer confidence in Germany and increasing number of the durable goods orders in the U.S. USD/JPY … “Yen Weakens on Signs of Recovery”
Loonie Rises vs. Greenback
The Canadian dollar went up today against its U.S. counterpart as the gains of the U.S. equities and the improving conditions on the U.S. housing market bolstered the currencies tied to the growth, including the loonie. The Canadian currencies declined somewhat versus the euro. The Standard & Poorâs 500 Index rose by 1.1 percent. The futures for crude oil, main Canadian export, traded near $78.99 per barrel after touching $79.30 per barrel on July … “Loonie Rises vs. Greenback”
Dollar Weakens as Risk Sentiment Improves
The U.S. dollar weakened today as the new home sales surged in the U.S. and the corporate earning increased, improving the appetite for the risk among the investors. The greenback fell versus most of other major currencies. The U.S. new home sales jumped in June to 330,000 (23.6 percent) from the revised May rate of 267,000. The U.S. house market was showing the awful values previously, and this improvement, while not unexpected, is much better than … “Dollar Weakens as Risk Sentiment Improves”
Yuan Strengthens and May Appreciate Further
The Chinese yuan strengthened today as the central bank kept its reference rate unchanged and after the stress test of the European banks failed to improve the confidence in the strength of Europe’s economy. Seven from 91 banks tested required to raise the combined â¬3.5 billion of capital, signaling that the recovery may be faltering. China’s economy continues to expand, in the same time, threatening to increase the inflation rapidly. More flexible yuan may help in this … “Yuan Strengthens and May Appreciate Further”
Rand Appreciates as Interest Rates Remained Unchanged
The South African rand extended its rally today for the fifth day as the prices for platinum and gold rose and the central bank kept the benchmark rate unchanged. The South African Reserve Bank kept the repurchase rate at 6.5 percent. This move wasn’t unexpected, but there were quite a few traders who bet on the rate cut. The high South African rates, compared to the rates in Japan (0.1 percent) and in the U.S. (0.25 percent), should … “Rand Appreciates as Interest Rates Remained Unchanged”
Loonie Weekly Recovery Stocks and Oil
The Canadian dollar managed to grow this week and almost recovered from the last week’s losses against the U.S. dollar, as the the global stock markets gains combined with an excellent dynamics of the crude oil pushed CAD. The currency also rose against the euro despite a strong support for the latter from the stress test speculations. While the Canadian stocks performed quite well during this week (S&P/TSX rose by about 1.31 percent), crude … “Loonie Weekly Recovery Stocks and Oil”
Euro Grows Somewhat on European Banks Stress Test Report
The euro rose today after the European supervising agency released its report on the stress test results of 91 banking institutions on 16:00 GMT. Though, the impact of the release wasn’t very strong. The euro rose against the U.S. dollar after the release was made available to the public. Having fallen earlier today, the Eurozone currency began to rise about 2 hours before the report, then went through an hour of strong market volatility … “Euro Grows Somewhat on European Banks Stress Test Report”
Britain’s GDP Data Pushes Pound Up
The Great Britain pound jumped against all other major currencies today as the British GDP data release surprised all Forex market participants with extremely high values, beating even the optimistic forecasts. The pound rouse against the U.S. dollar, the euro and the Japanese yen today as the Office for National Statistics reported preliminary estimate of GDP data for the second quarter of 2010. According to the release, the gross domestic product increased 1.1 percent … “Britain’s GDP Data Pushes Pound Up”
European Data Boosts Australian Dollar
Better than expected news from the Eurozone helped the Australian dollar to grow against all other major currencies today despite the pessimism expressed by the RBA yesterday. The Aussie rose against the greenback to the highest level since mid-May (this year) and extended its gains against the euro. The currency also rose against the Japanese yen and its New Zealand counterpart. The Australian dollar has been falling yesterday on concerns about the European … “European Data Boosts Australian Dollar”