Today was a bad day for the safe currencies, including the Swiss franc, which fell against the euro. The franc also weakened after the macroeconomic data showed that the manufacturing slowed and the retail sails decreased. The Swiss currency outperformed the US dollar. The Schweizerischer Verband fur Materialwirtschaft und Einkauf Purchasing Managers’ Index dropped to 59.7 this month, below the value of 61.4 in August and the market expectations of 60.8. The retail sales (not seasonally … “Franc Falls vs. Euro on Slower Manufacturing & Retail Sales”
Month: October 2010
Dollar Weakens as Manufacturing Slows
The US dollar dropped today against the euro to the lowest level since March, and also fell against all other major currencies, on the speculation that additional stimulus is required to support the US economy and after the report showed that the manufacturing growth slowed. The Institute for Supply Management Purchasing Managers’ Index declined to 54.4 in September from 56.3 in August. The report stated: While the headline number shows relative strength this month … “Dollar Weakens as Manufacturing Slows”
Pound Lags Behind
The British Pound stayed behind in the race to beat the greenback.New QE programs loom over the currency. GBP/USD is still in old ranges and some Pound crosses are in areas not seen in quite some time. GBP/USD reached a peak of 1.5998 at the beginning of August. Since then, it dropped and then recovered. While … “Pound Lags Behind”
Hungarian Forint Rises on Austerity Pledges & Economic Outlook
The Easter European currencies, including the Hungarian forint, were rising today as the improving sentiment about Europe’s economy and the governments’ pledge to cut the budget deficits attracted the foreign funds. The Hungarian government pledged to narrow the nation’s budget deficit below 3 percent, causing the speculation that Hungary’s rating wouldn’t be downgraded by the Standard & Poorâs. The Hungarian currency was also helped by the improving outlook for the whole European economy, caused by the growing … “Hungarian Forint Rises on Austerity Pledges & Economic Outlook”
Krona at Two-Year Record on Outlook for Monetary Tightening
The Swedish krona rose today to the highest level in two years versus the US dollar on the speculation that the central bank would perform its monetary tightening plans and as the economic data was favorable. The Riksbank said it would increase the benchmark repo rate more than 2 percentage points over the next two years to about 3 percent. The reports showed that the manufacturing expanded for the 16th straight month, while the consumer … “Krona at Two-Year Record on Outlook for Monetary Tightening”