The euro struggled this week to sustain its rally against the US dollar. The speculation that the euro was overbought limited its gains but the fundamentals were supporting the currency for the most part. Against the US dollar and the Japanese yen the currency showed the same pattern. It strongly declined after China’s decision to raise the interest rates, which drove the investors to the safer currencies. But in the second half of the week the euro attempted to rise … “Euro Struggles Extend Its Rally vs. Dollar This Week, Fails”
Month: October 2010
Dollar Attempts to Reverse Downward Trend Ahead of G-20 Meeting
The US dollar fluctuated today, attempting to rise but meeting a resistance, as Timothy Geithner, the US Secretary of the Treasury, suggested that the G-20 countries should agreed on the targets to reduce the current account imbalances. Geithner proposed, as a measure to ease the currencies tensions and prevent the so-called currency wars, the countries with the positive trade balance to decrease their surpluses, in the same time helping the countries with the trade deficits. The leaders of other countries divided in their … “Dollar Attempts to Reverse Downward Trend Ahead of G-20 Meeting”
Pound Weakens Ahead of G-20 Meeting
The Great Britain pound fluctuated today against the US dollar and the Japanese yen after it dropped earlier on the outlook for so-called quantitative easing by the Bank of England. The pound also weakened against the dollar on the speculation that on the G-20 the policy makers would discuss measures to prevent devaluation of the currencies across the world. Of course, the outcome of the meeting is unclear, but the uncertainty also plays in favor of the “safer” currencies, while weakening the riskier ones, including … “Pound Weakens Ahead of G-20 Meeting”
German Business Confidence Supports Euro
The euro rose today against the Swiss franc after the report showed the unexpected growth of the German business confidence. The euro fluctuated versus the US dollar, but had tendency to rise gradually. The Ifo Business Climate indicator for industry and trade in Germany advanced from 106.8 to 107.6 in October. The analysts’ estimates promised a value of 106.5. Germany’s government more than doubled its growth forecast for this year to 3.4 percent. EUR/USD traded … “German Business Confidence Supports Euro”
Falling Leading Index & Economic Confidence Drive Loonie Down
The Canadian dollar resumed its decline versus the US currency and extended its losses versus the euro today after the leading indicators dropped and the report showed that the economic confidence deteriorated. The leading index went down 0.1 percent in September, its first decrease since April 2009. In August the index rose 0.6 percent and the analysts promised it to rise this month by 0.2 percent. The Nanos Economic Mood Index dropped … “Falling Leading Index & Economic Confidence Drive Loonie Down”
Fundamental Overview – Market Movers Last Week –
The U.S. Dollar continued its decline against most of the other major currencies last week, with the exceptions of the New Zealand and Canadian Dollar that were each a few pips lower. Nevertheless, the Dollar’s fall last week was not as dramatic as previous weeks against the other major currencies that each gained only fractionally. … “Fundamental Overview – Market Movers Last Week –”
China’s Growth Boosts Singapore Dollar
The Singapore dollar rose today on the speculation that the accelerating China’s economic growth would attract the investors to Asia, increasing the appeal of the region’s currencies. The Chinese gross domestic product grew 9.6 percent in the third quarter of 2010 from a year earlier. Consumer prices went up 3.6 percent last month, the fastest growth in 23 months. The economic growth may be subdued a little by the interest rates, which were increased this … “China’s Growth Boosts Singapore Dollar”
Unexpected Manufacturing Growth Helps Euro to Rise
The euro gained today for the second day against the US dollar and also rose versus other currencies after the Eurozone Manufacturing PMI unexpectedly increased. The Markit Purchasing Managers’ Index rose from 53.7 in September to 54.1 in October. The expected valued was 53.2. The improving manufacturing caused the speculation that the euro isn’t overvalued and that the strong currency wouldn’t harm the region’s economic recovery. EUR/USD rose from 1.3963 to 1.4022 as of 10:32 … “Unexpected Manufacturing Growth Helps Euro to Rise”
Loonie Rises vs. Greenback, Can It Sustain Its Strength?
The Canadian dollar rose against its US counterpart on the gains of the stocks and raw materials, but the future of the currency amid the economic turbulence across the world remains unclear. Canada’s currency slipped versus the euro. The Standard & Poorâs 500 index advanced as much as 1.1 percent and the MSCI World Index rose 1.2 percent. Futures for crude oil went up 2.9 percent. It looks like the markets recovered very quickly … “Loonie Rises vs. Greenback, Can It Sustain Its Strength?”
Aussie Pares Losses on Outlook for Interest Rates Hike
The Australian dollar pared its previous losses today as the traders used the low prices as the opportunity to buy the currency. The speculation that Australia’s central bank may raise the interest rates also helped the currency. Earlier the Australian currency dropped as China, the biggest Australia’s trading partner, increased its interest rates yesterday, resulting in concern that China’s economic growth would slow. The news shook the markets: the Standard & Poorâs … “Aussie Pares Losses on Outlook for Interest Rates Hike”