The Australian dollar slumped today after the remarks of Australia’s central bank governor suggested that there will be the interest rates increased in the new future. Glenn Stevens, the Governor of the Reserve Bank of Australia, said that the stronger currency was helping to contain the inflation and suggested that the current level of the interest rates is appropriate in the near term. The statement caused the speculation that there will be no interest rates hikes, … “Rates in Australia to Remain Unchanged in Near Term, AUD Falls”
Month: November 2010
Catalonia Elections Could Shake Euro
On Sunday, November 28th, elections are held in Catalonia, one of the richer regions in Spain. The local Socialist party is expected to lose – a “punishment” for the actions of its “mother party” that controls Spain. This can add more weight on the Euro. Here’s a very brief explanation of local politics: A recent … “Catalonia Elections Could Shake Euro”
Canadian Dollar Falls as Fundamentals Favor Safe Currencies
The Canadian dollar slumped today against its US counterpart as the tension between North and South Korea is becoming more heated and the European debt crisis threatens to spread across the Eurozone, causing the investors shun the growth-related currencies in favor of the safer ones. The conflict between North and South Korea is closing to the brink of war and was further worsened with the involvement of the United States. The policy makers of the Eurozone are attempting to convince Portugal … “Canadian Dollar Falls as Fundamentals Favor Safe Currencies”
Forex Portfolio Grows With Volatility
This wild week of action in forex has been good to the forex portfolio, especially to the riskier traders. As you can see below, the forex portfolio has shown nice growth since last week’s report. We had lots of bad news from Europe in the past week, and also rising tensions in the Koreans peninsula. This … “Forex Portfolio Grows With Volatility”
Hezbollah Indictments Due December 2nd
The special tribunal for Lebanon is expected to publish its conclusions on Thursday, December 2nd, 2010. The conclusions are likely include indictments against senior Hezbollah members. This is expected to raise tensions in Lebanon, to say the least. Evidence obtained by the STL is likely to show that Hizballah assassinated Rafik Hariri, former Prime Minister … “Hezbollah Indictments Due December 2nd”
Dollar Rises on Korean Conflict & Portugal’s Bailout Concerns
The US dollar advanced today as the concerns that the conflict between North and South Korea would escalate increased the demand for the currency as the safe haven. The US aircraft carrier was sent as the show of strength after North Korea shelled this week the South Korean island. North Korea warned that any “escalated confrontation” would result in a war. The dollar also strengthened against the euro as the European Union’s leaders pressure Portugal to accept … “Dollar Rises on Korean Conflict & Portugal’s Bailout Concerns”
Polish Zloty Falls on European Debt & Fitch Statement
The Polish zloty tumbled today on the increasing concerns about the European sovereign-debt and as the Fitch Ratings requested the country to decrease its deficit. The Financial Times Deutschland reported that Eurozone policy makers are pushing Portugal to request aid from the bailout fund. The Fitch Ratings said yesterday that Poland required to cut its deficit to prevent “negative pressure building” on its creditworthiness. The Fitch said that the increase of the countryâs general government … “Polish Zloty Falls on European Debt & Fitch Statement”
Spanish Bonds Jump Again – 5.25% and Rising
Spanish 10 year bonds continue weighing on the Euro. 10 year yield has reached 5.25%, continuing rises from yesterday, when Spanish bonds edged up to 5.15%. Many analysts are comparing the Spanish bonds with the benchmark German bunds, but as this article says, the EU aid costs will soon start threatening Germany itself, with a … “Spanish Bonds Jump Again – 5.25% and Rising”
North Korea Fires Warning Shells, South Korean Weak Minister
The tension between North and South Korea is still on, with movements on both sides. The North warns that the joint South Korean American naval exercise is very dangerous and will bring the countries to the brink of war. It even fired warning shells near the island of Yeonpyeong, where the incident on Tuesday happened. The … “North Korea Fires Warning Shells, South Korean Weak Minister”
More Australian Home Owners Struggling
While the report of Fitch on the Australian mortgage market is still good, there still is a rise in the number of struggling home owners. This figure will probably rise: Fitch says it does not expect any substantial improvement in the level of delinquent mortgages until well into next year, as Christmas spending tends to … “More Australian Home Owners Struggling”