Good Week for Pound, Yet Outlook Remains Uncertain

The Great Britain pound rose this week as the favorable GDP report and the improving consumer confidence caused the speculation that the central bank wouldn’t introduce the additional stimulus to support the economy. The UK gross domestic product rose twice the forecast value and the consumer confidence improved, while it was predicted to decline. The favorable reports improved the outlook for Britain’s economy somewhat. The pound erased the losses of the last week against the US dollar and ended … “Good Week for Pound, Yet Outlook Remains Uncertain”

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Canadian Dollar Rises on US and Canadian GDP

The Canadian dollar rose today after the reports showed that the economies of Canada and the US expanded, boosting the demand for the higher-yielding currencies. Canada’s gross domestic product increased by 0.3% percent in August, following the 0.1% decline in July. The actual reading matched the forecast value. The US GDP increased at the annual rate of 2.0 percent in the third quarter of 2010, according to the “advance” estimate released by the Bureau of Economic Analysis, compared to the growth by 1.7 percent in the second … “Canadian Dollar Rises on US and Canadian GDP”

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Will the Foreclosure Freeze Weaken the Dollar Soon?

The foreclosure freeze that started at the beginning of October 2010 is already hurting the already-fragile economy. The mortgage mess could also be factored by the Federal Reserve as it makes its critical decision on more quantitative easing. A sign for dollar bears? The foreclosure freeze is gradually getting to the forefront of the news … “Will the Foreclosure Freeze Weaken the Dollar Soon?”

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Consumer Confidence in UK Improves, Supporting Pound

The consumer confidence in the UK unexpectedly improved this month, supporting the Great Britain pound and possibly allowing it to post the weekly gain after the previous streak of the losses. GfK NOP Consumer Confidence Barometer rose from -20 to -19 in October. The analysts expected the decline to -22. The analysts are unsure whether the confidence would remain firm after the government would announce its plans for the budget cuts. GBP/USD rose from 1.5940 … “Consumer Confidence in UK Improves, Supporting Pound”

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Euro Slips After Discussion of Mechanism to Prevent Debt Crisis

The euro fell today as the European Union’s leaders discussed the permanent debt mechanism, causing the concerns about the renewed debt crisis in Europe. Angela Merkel, the Chancellor of Germany, won the support of other EU policy makers to create the permanent debt-crisis mechanism, which would help to avoid another fiscal crisis, like the one shook the Europe this year. The retail sales in Germany unexpectedly fell 2.4 percent in September. The Stoxx Europe 600 … “Euro Slips After Discussion of Mechanism to Prevent Debt Crisis”

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BoE May Postpone Quantitative Easing — Pound Rises

The Great Britain pound surged as the report this week showed the faster growth of the UK economy in the third quarter, causing the speculation that the next round of the quantitative easing would be postponed. The Britain’s GDP increased 0.8 percent in the third quarter of 2010, twice the forecast value. The Standard & Poor’s removed the negative outlook for the UK debt and confirmed Britain’s top AAA credit rating. The favorable economic data reduced the speculations that … “BoE May Postpone Quantitative Easing — Pound Rises”

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Retail Sales Bolsters Swedish Krona & Bets on Rates Hike

The Swedish krona gained today after the report showed the retail sales grew more than predicted, increasing the probability of the interest rates hike. The annual growth of the retail sales was 5.5 percent in September, 4.5 percent more than a month earlier. That’s above the median forecast of the 4.2 percent increase. The central bank previously cut the long-term target for the interest rates increases because of the slower global economic growth. Niels Christensen, … “Retail Sales Bolsters Swedish Krona & Bets on Rates Hike”

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