The South Korean won fell on the concerns that the government is going to perform actions, which would curb the currency’s volatility and drive away the speculators. South Korea’s government announced the cap on currency derivatives in June, demanding the foreign and domestic banks to cut their holdings to the specified amount of equity capital by October 2012. It looks like the government desires to prevent the speculative funds from coming into the country, which is weakening … “South Korean Won Hurt by Volatility Curbs”
Month: November 2010
Ireland’s Budget Deficit Weakens Euro
The euro dropped today as the speculation that Ireland wouldn’t be able to curb its budget deficit renewed the concerns about the debt crisis in the euro-region. Ireland announced last week the plan to cut spending by as much as â¬6 billion ($8.4 billion) in 2011. Olli Rehn, the European Commissioner for Economic and Financial Affairs, arrives today in Dublin to discuss the spending cuts and the tax increases. The spread, between Irish bonds and benchmark German bunds, maturing … “Ireland’s Budget Deficit Weakens Euro”
Eur/Usd: Top in place?!
Eur/usd reached new highs in this past week, but was very bearish on Friday, which actually could lead to some deeper decline in the coming week. In this free Elliott wave video, we will present you the main technical reasons that could drive the Eur/usd lower, maybe even towards 1.3800 region, while the 1.4280 top … “Eur/Usd: Top in place?!”
US Debased Its Currency This Week, Others May Follow
The main driver for the moves of the US dollar, as well as most other currencies, this week was the quantitative easing, which weakened already weak greenback. The favorable US nonfarm payrolls allowed the dollar to return some strength yesterday, but it posted weekly losses against most major currencies. The quantitative easing may bolster the US economy, but it weakens the US currency. The euro profited from the easing, further boosted … “US Debased Its Currency This Week, Others May Follow”
Demand for Safety Wanes, Yen Weakens
The Japanese yen fell against the US dollar and weakened versus the Great Britain pound as the nonfarm payrolls in the US grew and the Asian stocks rallied, decreasing demand for the safer currencies. The US nonfarm payrolls posted the increase by 151,000 in October, following the decline by 41,000 in September. The MSCI Asia Pacific Index of regional shares gained as much as 1.2 percent. The VIX Index, the measure of market volatility which is often called the Wall Streetâs “fear … “Demand for Safety Wanes, Yen Weakens”
Canada’s Dollar Jumps on Good Employment Reports
The Canadian dollar extended its gains today, reaching parity with the US dollar, after the reports showed that employment improved in Canada and the US last month, improving the outlook for the economic growth. The unemployment rate in Canada went down from 8.0 percent to 7.9 percent in October, while the employment remained almost unchanged. The US nonfarm payrolls increased by 151,000, compared to the median forecast of the 63,000 increase and the 41,000 decline in the previous month. … “Canada’s Dollar Jumps on Good Employment Reports”
![[Video] QE2 Long Term Effect on EUR/USD, Central Banks’](https://investinearth.org/wp-content/uploads/2010/11/forexcrunch-logo-351x185-29.jpg){kind=logo}
[Video] QE2 Long Term Effect on EUR/USD, Central Banks’
Chief Markets Analyst of FX Solutions, Joseph Trevisani, analyzes the desired effects of the second quantitative easing – a weaker dollar, something the Fed cannot admit. Speaking with Julie Sinha on Forex TV, Trevisani marked the next levels for EUR/USD in the long term., and went to speak about various long term issues on the agenda. … “[Video] QE2 Long Term Effect on EUR/USD, Central Banks’”
Dollar Rises vs. Euro on US Nonfarm Payrolls & Europe’s Retail Sales
The US dollar jumped against the euro today, erasing yesterday’s losses, after the reports showed that the US employers added last month more jobs than predicted, while the retail sails in the Eurozone unexpectedly declined in September, increasing concerns for Europe’s economy. The retail sales in the Eurozone fell 0.2 percent in September, while the 0.3 percent increase was expected. The nonfarm payrolls increased by 151,000 in October, following the 41,000 decline in the previous … “Dollar Rises vs. Euro on US Nonfarm Payrolls & Europe’s Retail Sales”
South Africa Intervenes to Weaken Overvalued Rand
The South African rand fell today as the central bank bought the foreign currencies in order to battle the excessive appreciation, which may hurt the exports. The rand jumped 38 percent since the beginning of 2009 as the interest rates in the developed nations were falling, while in South Africa the rates remained high, attracting the investors. The government voiced concerns about the impact of the overvalued currency on the nation’s economy and tried to curb the gains, increasing the net gold and currency … “South Africa Intervenes to Weaken Overvalued Rand”
BHP Billiton Bid for Potash Corp. Rejected, Making Loonie Fluctuate
The Canadian dollar today rose against its US counterpart as the stocks and crude oil climbed and fluctuated against the euro after the bid for Potash Corp. was rejected. The BHP Billiton Ltd. planned the hostile takeover of the Potash Corp. of Saskatchewan Inc., the largest fertilizer company in the world. The anticipation of the money, which would be brought into the Canadian economy, improved Canada’s economic outlook and bolstered the loonie, as Canada’s currency is nicknamed. The Canadian … “BHP Billiton Bid for Potash Corp. Rejected, Making Loonie Fluctuate”