The Chinese yuan fell today to the lowest level in a month after the central bank set the reference rate lower for the third day, fueling the speculation the government would limit the currency’s gains. It looks like the Chinese policy makers used the strength of the dollar against other currencies as an excuse to slow down the appreciation of the yuan. The Peopleâs Bank of China set the reference rate 0.11 percent weaker at 6.6986 against the dollar. USD/CNY rose from … “Yuan Appreciation Slows as Dollar Strengthens”
Month: October 2010
Dollar Falls as Talks About Quantitative Easing Intensifies
The US dollar fell against all other most-traded currencies today as the speculation that the bonds buying program of the Federal Reserve would weaken the US currency increased the demand for the riskier assets. The dollar slipped after the policy makers asked the investors and the dealers about their projections of the asset purchases over the next six months. The Dollar Index, tracking the greenback versus the currencies of the six major US trading partners, fell 0.6 percent … “Dollar Falls as Talks About Quantitative Easing Intensifies”
Trading The News Is A Fools Game
In the world of trading people have devised all types of methods for trying to turn a profit. Some are fundamental traders while others are technical, and some use indicators while others focus on price action. The aforementioned traders make up the majority of traders, but there is another group. A group that some might … “Trading The News Is A Fools Game”
Bullish Reversal for USD/JPY?
Usd/Jpy formed a sharp impulsive downtrend over the past few weeks, from 85.95 top, which was established after the BOJ intervened in September. Obviously, intervention did not work as pair formed a nice five wave, called an impulsive decline with a recent low at 80.40. Always when five sequence is finished, a correction in the … “Bullish Reversal for USD/JPY?”
New Zealand Currency Attempts to Rise After Slump vs. US Dollar
The New Zealand tumbled today, reaching the lowest level in three weeks on the outlook that the Federal Reserve would buy less assets to stimulate the US economy, before regaining its strength of the comments of New Zealand’s central bank. The currency extended its gains versus the euro. The New Zealand currency gained after the Reserve Bank of New Zealand said that the high export prices and the reconstruction in Canterbury, which were hit by the earthquake, … “New Zealand Currency Attempts to Rise After Slump vs. US Dollar”
Fed May Buy Fewer Bonds â Dollar Gains
The US dollar climbed today against all other major currencies on the speculation that the bonds purchases by the Federal Reserve would be less extensive than anticipated. The moves of the dollar recently were very strongly tied to the talks about the quantitative easing. The easing was priced in the weaker dollar, so any signs of less stimulus being added by the Fed make the dollar stronger. The good macroeconomic reports from the US add to the speculation … “Fed May Buy Fewer Bonds â Dollar Gains”
South Africa’s Finance Minister May Weaken Rand
The South African rand fell today on the speculation that the Prime Minister would announce the measures to weaken the currency during his today’s speech. South Africa’s unemployment rate reached 25.3 percent in the third quarter of this year, while it was 25.2 percent in the second. The labor unions and the manufacturers claim that the strong currency are hurting exports and increasing unemployment, spurring Pravin Gordhan, South Africa’s Minister of Finance, to weaken … “South Africa’s Finance Minister May Weaken Rand”
Norwegian Krone Drops on Outlook for Interest Rates
Norway krone fell today as the central bank would refrained from increasing the interest rates and on the speculation that the bank would slow the monetary tightening in the future. Norway’s central bank left its overnight deposit rate unchanged at 2 percent today as was expected. The analysts also expect that the bank would postpone the rates increases till the beginning of the next year as the struggling global economic recovery threatens the Norwegian economy. USD/NOK … “Norwegian Krone Drops on Outlook for Interest Rates”
Aussie Falls as Slower Inflations Curbs Bet On Interest Rates Hike
The Australian dollar fell after the report showed that the consumer prices rose less than expected, decreasing the possibility of the interest rates hike by the central bank. The consumer prices in Australia rose 0.7 percent in the third quarter from the second quarter, compared to the median forecast of 0.8 percent. The prices increased by 2.8 percent from a year ago. The expected value was 2.9 percent. The report caused the speculation that the interest rates increases … “Aussie Falls as Slower Inflations Curbs Bet On Interest Rates Hike”
Gold Bullish in Near Term
Gold should be headed higher in the very near term, at least towards the 1360, as we anticipate at least three wave move on the upside from 1315 lows; either you count a decline from 1387 highs as a five wave move or a complex double zig-zag correction. Guest post by Gregor Horvat Gold was … “Gold Bullish in Near Term”