The New Zealand dollar rose against its US counterpart on the speculation that the US Federal Reserve would announce today the next round of the quantitative easing. The greenback weakened against the higher-yielding currencies, including the New Zealand one, as the market participants anticipate the Fed to announce its asset-purchase plans today. There’s the risk, of course, that the Fed would surprise everybody and wouldn’t perform the easing or the stimulus wouldn’t be that big. Such … “New Zealand Dollar Strengthens Before Fed Meeting”
Month: November 2010
QE2 Update – Expectations Narrowing Down
The QE2 decision is getting closer – at 18:15, the FOMC will release its long awaited decision about a second dollar printing program. Here are the latest estimations. The narrow estimations leave more room for a surprise and high volatility. Out of the 5 scenarios for the quantitative easing decision, scenario no.2 is now popular … “QE2 Update – Expectations Narrowing Down”
Pound Weakens on Slower Construction Growth
The Great pound dropped against the euro, erasing the two-day gains, after the report showed the slower construction growth, reinforcing the concerns for Britain’s economy and the outlook for the quantitative easing by the Bank of England. The Construction Purchasing Managers’ Index dropped from 53.8 in September to 51.6 in October. The much smaller decline to 53.1 was expected. The report somewhat muted the impact of the positive economic data last week on the outlook for the UK economy. The Bank of England should set … “Pound Weakens on Slower Construction Growth”
Is Iraqi Dinar New Opportunity or Tool for Scam?
The new Iraqi dinar, introduced in 2003 after the fall of the Hussein’s rule, became popular among some investors, who hope it would become much more valuable soon and would bring a big profit. Are such hopes justified or buying the dinar is buying the worthless paper? The example of the Kuwait dinar fuels hopes of the investors, who put faith in the Iraqi currency. The Iraqi dinar already jumped from 4000 per … “Is Iraqi Dinar New Opportunity or Tool for Scam?”
Fundamental Overview – Market Movers Last Week – 11/01/2010
The U.S. Dollar had a mixed week against the major currencies, falling against most of them, but gaining slightly against the Australian Dollar and the Euro. The set of economic data out from the United States had a net negative effect on the Greenback. The U.S. Dollar Index declined by -0.21 last week from 77.47 … “Fundamental Overview – Market Movers Last Week – 11/01/2010”
Japan’s Yen Weakens as Global Economy Recovers
The Japanese yen weakened today as the rallying stocks and the interest rates hike in Australia added to the signs of the global economic recovery, decreasing the demand for the safer currencies. The MSCI Asia Pacific Index of regional shares rose 0.3 percent, while the MSCI World Index advanced for the fourth day. The growth of the US and China’s manufacturing and the interest hike in Australia also supported the outlook for the recovery of the world economy. USD/JPY advanced from 80.49 to 80.78 today as of 10:20 … “Japan’s Yen Weakens as Global Economy Recovers”
Aussie Reaches Parity with Greenback After Rates Hike
The Australian dollar rose today after the central bank unexpectedly raised the interest rates today, increasing the attractiveness of the nation’s assets. The Reserve Bank of Australia raised its cash rate to 4.75 percent, while the analysts predicted the bank would remain the rate unchanged at 4.50 percent. Glenn Stevens, the Governor of the Reserve Bank of Australia, said in his statement that “the risk of inflation rising again over the medium term remains”. AUD/USD jumped … “Aussie Reaches Parity with Greenback After Rates Hike”
Canada’s Dollar Gains as Oil Prices Rises
The Canadian dollar gained today against its US counterpart as oil, the main nation’s export, advanced and on the speculation that the quantitative easing by the Federal Reserve would weaken the US currency. The loonie also rose versus the euro. The anticipated announcement of the quantitative easing boosted the loonie, as the Canadian currency often nicknamed, against the greenback, while the advance of the oil prices bolstered the Canadian dollar versus some other currencies. December delivery for crude oil … “Canada’s Dollar Gains as Oil Prices Rises”
Dollar Strengthens on PMI & Construction Spending
The dollar gained today after the reports showed that the construction spending and the manufacturing in the US unexpectedly grew and as the speculators closed some of their long positions on the euro ahead of the Federal Open Market Committee meeting this weak. The Institute for Supply Management Purchasing Managers’ Index rose to 56.9 in October, while it was expected to decline to 54.2. It was at 54.4 in September. The construction spending grew 0.5 percent in September. It dropped … “Dollar Strengthens on PMI & Construction Spending”
China’s Manufacturing Bolsters Rand
China’s manufacturing growth also bolstered the South African rand as it has increased the appeal of the higher-yielding currencies. China Federation of Logistics and Purchasing Purchasing Managers’ Index advanced to 54.7 in October from 53.8 in September. The Hongkong and Shanghai Banking Corporation Purchasing Managers’ Index also gained, rising from 52.9 to 54.8 in October. Good news bolstered the stocks and the riskier currencies across the world. USD/ZAR jumped from 6.939 to 6.997 as of 11:30 … “China’s Manufacturing Bolsters Rand”