The Australian dollar weakened today after the Reserve Bank of Australia kept the interest rates unchanged and on the outlook that the Prime Minister Julia Gillard would keep power and her Labor Party to retain government. The RBA left the overnight cash rate target at 4.5 percent, as was predicted by the analysts. The experts say that the economic situation in Australia itself warrants the higher interest rates. The reason for the central bank to refrain from the rates hike … “RBA Keeps Interest Rates Unchanged, Aussie Weakens”
Month: September 2010
Fundamental Overview – Market Movers Last Week –
The U.S. Dollar fell across the board against all the major currencies last week with the exception of the Pound Sterling. The most price action was seen against the commodity dollars with the Aussie, Loonie and Kiwi ending up as the best performers versus the Greenback last week. Traders reported that the primary piece of … “Fundamental Overview – Market Movers Last Week –”
Worries About Health of Europe’s Banks Drive Euro Down
The euro slumped today on the concerns that the health of the European banks would deteriorate as they hold the government debts, damping the outlook for Europe’s economy. The Wall Street Journal said that the stress tests of the major European banks underestimated some holdings of the government debt. The European Union performed the stress test of the banks in July. According to the report of the Journal, some banks excluded debt of the certain countries from their totals and others reduced amounts … “Worries About Health of Europe’s Banks Drive Euro Down”
Yen Appreciates on Outlook for US Quantitative Easing
The Japanese yen gained today on the forecast that the Federal Reserve would be required to print more money to support the faltering US economy. The quantitative easing should decrease the appeal of the US dollar and boost the attractiveness of the yen as the safe haven. The strong currency is the last thing the Japan needs these days, but the direct intervention is likely will be opposed by the US. USD/JPY slid from 84.18 to 83.87 today as of 9:24 … “Yen Appreciates on Outlook for US Quantitative Easing”
Comeback of European Debt Problems?
A fresh report shows that many big European banks were very “creative” when it came to estimating the size of the sovereign debt that they held. This already sent the Euro way down. Will this turn into an avalanche? Is the debt crisis returning through the front door? At the beginning of May, the financial … “Comeback of European Debt Problems?”
EUR/USD Sep. 7 – Stabilizing after a collapse
EUR/USD collapsed on low volume, and will pick a new direction now that the holiday is over. Here is a quick update on technicals, fundamentals and community trends. EUR/USD within uptrend channels. Click to enlarge. EUR/USD Technicals Asian session: Eventful session, with Euro/Dollar dropping sharply from 1.2880 to 1.2780, breaking both uptrend support lines. The … “EUR/USD Sep. 7 – Stabilizing after a collapse”
RBA Would Keep Interest Rates Unchanged
The Reserve Bank of Australia will keep the interest rates unchanged, according to the forecasts of the economists, as the concerns for the global economic recovery prompt the policy makers to support the nation’s economy. The pause in the rates increase may have negative impact on the performance of the Australian dollar, which for now rises. The S&P 500 index dropped 4.7 percent in August and the MSCI World Index slipped 3.9 percent. Australia’s economic growth likely won’t support the inflation as the boost … “RBA Would Keep Interest Rates Unchanged”
Yuan Rises as US Advisors Visit China
The Chinese yuan rises to the highest level in more than two weeks today against the US dollar as the US government advisers visit China, causing the speculations that the Chinese currency would be allowed to appreciate more. Larry Summers, the Director of the White House National Economic Council for President Barack Obama, started the meeting with Li Yuanchao, the head of the Communist Partyâs organization department, in Beijing today. The Asian currencies also gained … “Yuan Rises as US Advisors Visit China”
Euro Rises on Good German Economic Outlook
The euro traded at the highest level in more than two weeks as the analysts predicted that the government reports would show that the German economic recovery is gaining momentum. The factory orders in Germany grew 0.5 percent in July, following the 3.2 percent growth in the previous month according to the economists’ estimates. The experts also estimated that the industrial production rose 1 percent. The good economic forecasts damped the demand for the safety of the dollar. EUR/USD … “Euro Rises on Good German Economic Outlook”
Weekly Performance of Swiss Franc: Up vs. Dollar, Flat vs. Euro
The Swiss franc, which is consider the safe currency, rose against the euro in the first half of this week as demand for the safety increased, but slumped in the second half as the risk appetite improved. The franc slid versus the greenback at the end of the week, but decline wasn’t strong enough to erase the previous gains. The Swiss currency was bolstered by the concerns for the economic growth at the beginning of this week. The whole world looks on the US economy to evaluate the stability … “Weekly Performance of Swiss Franc: Up vs. Dollar, Flat vs. Euro”