The Chinese yuan gained today against the US dollar, rising for the first time since 1993 beyond 6.6 yuans per dollar level, on the speculation that the government may allow the currency to appreciate faster in an attempt to rein the inflation. The currency weakened against the euro. The Peopleâs Bank of China raised the reference rate today to 6.6227 per dollar from yesterday’s 6.6229, increasing it for the ninth day. The yuan is allowed to trade by up … “Yuan Rises Beyond 6.6 per Dollar as China Battles Inflation”
Month: December 2010
Global Recovery Damps Demand for Safety, Weakening Dollar
The US dollar continued to decline today as the signs of the global economic recovery made the higher-yielding currencies more appealing than the safer ones. South Koreaâs consumer prices advanced 3.5 percent this month from a year ago, compared to the median forecast of 3.2 percent growth. German Chancellor Angel Merkel vowed to defend the shared 16-nation European currency, supporting the euro versus the dollar. EUR/USD advanced from 1.3288 to 1.3375 as of 11:10 … “Global Recovery Damps Demand for Safety, Weakening Dollar”
UK House Prices Decline, Endangering Pound
The Great Britain pound recovered somewhat after it dropped on the speculation that the falling house prices signal about problems in Britain’s economy. According to the Land Registry, the house prices declined 0.6 percent from October to November. The analysts predict that the home prices in the UK would drop about 2.5 percent in 2011 as the spending cuts discourage the buyers. The declining prices strengthen the concerns about the possible effect of the budge cuts on the UK … “UK House Prices Decline, Endangering Pound”
![[Video] EUR/USD, GBP/USD, AUD/USD Before Year’s End](https://investinearth.org/wp-content/uploads/2010/12/Fotolia_8101755_XS-351x185.jpg)
[Video] EUR/USD, GBP/USD, AUD/USD Before Year’s End
In an interview just before year’s end on Forex TV, I spoke with Julie Sinha about technical levels of EUR/USD, GBP/USD and AUD/USD, and what’s behind those moves. We also took a peek into 2011. Enjoy! While the Aussie had all the reasons to rise during the all the year and also into the next … “[Video] EUR/USD, GBP/USD, AUD/USD Before Year’s End”
Euro Rises as German CPI & Italian Business Confidence Grow
The euro rose today against the US dollar for the second day as the German inflation grew and the Italian business confidence jumped. The possibility of the credits rating downgrades of the various European countries still may curb gains. The consumer prices in Germany rose 1.0 percent in December, according to the preliminary report of the Destatis, while the business confidence in Italy climbed to the highest level in almost three years. The speculation that the credit rating of France may be downgraded … “Euro Rises as German CPI & Italian Business Confidence Grow”
Zloty Appreciates as BGK Sells Euros
The Polish zloty headed to the weekly gain today on the speculation that the state-owned Bank Gospodarstwa Krajowego sold the euros, boosting the Polish currency. According to the unidentified traders, the bank has begun selling at the rate of about 3.99 zloty per euro. The specialists say that the Finance Ministry is behind this transaction, attempting to profit from the relatively low rate of the zloty. USD/PLN traded at 2.9981 as of 10:52 GMT today after it opened … “Zloty Appreciates as BGK Sells Euros”
Recovering Economy Increased Appeal of Australian Dollar
The Australian dollar headed today to the highest level since 1982 against its US counterpart as the signs of the faster economic growth in the US increased the appeal of the higher-yielding currencies. The currency declined versus the euro. The Manufacturing Index of the Federal Reserve Bank of Richmond showed the increase to 25 in December from 9 in November. Tomorrow’s report about the unemployment claims is expected to show the decline from 420,000 to 416,000 last week. The MSCI World Index … “Recovering Economy Increased Appeal of Australian Dollar”
Canadian Dollar Falls vs. Euro, Little Changed vs. US Dollar
The Canadian dollar traded near its opening level versus the US currency after it earlier rallied on the gains of the commodity prices and the record prices for crude oil. The loonie slipped against other currencies as the Canadian house prices declined and the US consumer confidence worsened. February delivery for crude oil declined 0.4 percent to $91.14 per barrel in New York, while it traded at $91.88 on December 27th, the highest level since … “Canadian Dollar Falls vs. Euro, Little Changed vs. US Dollar”
Can Yuan’s Gains Be Limited by Demands for Slower Appreciation?
The Chinese declined today as the Chinese executives call for a slower appreciation, while criticizing the US for the debasing of its currency and creating asset-bubbles on the emerging markets. Earlier the executives were supporting the end of the yuan’s peg to the dollar and willing to see a faster appreciation of the Chinese currency. Now the CEOs are worried that the US quantitative easing may hurt the economies across the world and are willing to see the slowdown of the yuan’s appreciation. USD/CNY advanced from 6.6258 … “Can Yuan’s Gains Be Limited by Demands for Slower Appreciation?”
Franc Rallies as Swiss Economy Grows
The Swiss franc rallied today against the US dollar, heading to the record, as the leading economic indicators showed the sustainable economic growth. The KOF Economic Barometer posted a reading of 2.10, which was rather higher, despite declining from the previous level of 2.13 in the third straight drop. The report also forecasts that the economy would continue its growth, albeit at a slower pace. USD/CHF rallied today from 0.9520 to 0.9502 as of 13:19 GMT … “Franc Rallies as Swiss Economy Grows”