The euro rallied today against the US dollar and the Japanese yen, erasing its losses, after the global equities advanced and the good macroeconomic data from Europe suggested that the economic recovery continues. The Standard & Poorâs 500 Index rose 2 percent, the biggest advance in three weeks. The MSCI Emerging Markets Index went up 0.8 percent, heading for the highest closing level since July 2008. The MSCI Asia Pacific … “Brighter Outlook for Economic Recovery Makes Euro Stronger”
Month: September 2010
Good Economic Reports from US & Europe Push Loonie Higher
The Canadian dollar went up today against the US dollar, paring previous losses, as the German business sentiment unexpectedly increased and the number of the US durable good orders grew, increasing the attractiveness of the growth-related currencies. The currency later weakened somewhat but remained above the opening level. The loonie fell versus the euro. The new orders for the US durable goods, excluding transportation, grew 2.0 percent in August, following the 2.8 percent decline in July. … “Good Economic Reports from US & Europe Push Loonie Higher”
CFTC Assuming Babysitter Role
Regulating US forex brokers is one thing. But preventing traders from opening offshore accounts is already another thing. This is already significant “baby-sitting” and over “protection” opinion. Some brokers are already bringing clients back home. Will US traders be blocked from opening accounts with offshore brokers? The talk about the new CFTC rules created a … “CFTC Assuming Babysitter Role”
Capital Inflows Bolster Indian Rupee
The Indian rupee, together with other Asian currencies, rose today on the speculation that the increasing capital inflows from the global funds in the region’s economy would allow the Asian countries to profit from Asia’s fast economic growth. The rupee also gained after the Indian government allowed the foreign investors to double the holdings of the government bonds to $10 billion and increased the cap on investment in the corporate debt by the third to $20 billion. This measure may … “Capital Inflows Bolster Indian Rupee”
Yen Slumps on Talks About Another Intervention
The Japanese yen is rising after it previously declined today on the speculation that Japan intervened to trim the currency’s gains in order to protect the nation’s exporters. Japan perhaps sold the yen today after it intervened last week for the first time in six years. Yoshihiko Noda, the Minister of Finance, said that the government may perform the “bold” actions to limit the excessive appreciation. The yen also fell on the rumors that the Bank of Japan … “Yen Slumps on Talks About Another Intervention”
Euro Declines as Reports Signal About Slower Growth
The euro fell today as the reports signaled that the European economic recovery may be slowing, diminishing the attractiveness of the shared 16-nation currency to the investors. The French Services PMI was at 58.8 this month, down from 60.4 in August and below the market expectations of 60.1. The German Services PMI declined from 57.2 in August to 54.6 in September. The forecasts promised it to remain at the same level. German Manufacturing PMI declined to 55.3 in September from … “Euro Declines as Reports Signal About Slower Growth”
Poor Economic Reports Signal About Slower Recovery, CAD Down
The Canadian dollar fell today as the investors’ sentiment shifted to the risk aversion after the reports from the US, Europe and Canada itself signaled that the global recovery is faltering, decreasing the appeal of the growth-related currencies. The currency rose against the euro. The claims for the unemployment benefits unexpectedly rose last week in the US from 453,000 to 465,000. The manufacturing and services industries in the European countries, including Germany and France, declined noticeably more than predicted. The reports … “Poor Economic Reports Signal About Slower Recovery, CAD Down”
Will Yuan Appreciate? Yes. Slowly.
The clash between the US and China over the freedom of the yuan’s movement continues. China indeed allowed its currency to appreciate but the US are obviously unpleased with pace of the appreciation and demand from China to let the yuan float more freely. Is the yuan really undervalued and will it appreciate in the future? The US officials claim that China’s currency is below the level, which can be considered the fair market value, … “Will Yuan Appreciate? Yes. Slowly.”
Rand Drops as Central Bank & Importers Buy Dollars
The South African rand weakened today as the rand’s gains encouraged the central bank and the importers to take advantage of the stronger currency and buy the US dollars. The rand’s rally may hurt the country’s exports but the central bank has limited resources to curb the currency’s gains. Gill Marcus, the central bank’s governor, said that there is no “easy solution” and the measures to trim the advance of the rand can be “hugely costly”. The currency surged … “Rand Drops as Central Bank & Importers Buy Dollars”
New Zealand Dollar Slumps as GDP Grows Less Than Forecast
The New Zealand dollar slumped today after the government reported that the nation’s economy expanded less than expected, damping the prospect for the interest rates hikes. The New Zealand gross domestic product rose 0.2 percent in the third quarter of this year, following the 0.5 percent growth in the second quarter. The actual growth was much smaller than the forecast 0.8 percent increase. The slow economic growth reinforced the outlook that there … “New Zealand Dollar Slumps as GDP Grows Less Than Forecast”