The Gross Domestic Product in the Euro-zone grew by only 0.3% in the third quarter of 2010. The final release of GDP wasn’t expected to show a change from the previous read of a 0.4% growth rate, so this is a disappointment. The final release usually confirms earlier releases. In other European news, the unemployment … “Euro-zone GDP Lower in Q3”
Month: January 2011
Spanish Bond Yields Moving Higher
The yields on ten year Spanish government bonds are on the rise and are currently at 5.53%. This came after a few good days of lowers yields, that were pushed by the Chinese pledge to buy Spanish bonds and to support the country. But now, as the fears grow in Europe, the yields are moving up. Spain … “Spanish Bond Yields Moving Higher”
Slump of Commodities Weakens Australian Dollar
The rally of the US dollar weakened its Australian counterpart as the drop of commodities, which was cause by the rally of the greenback, damped the appeal of the commodity currencies. February delivery for gold futures extended its decline for the third consecutive day yesterday. February delivery for crude oil fell 2.1 percent to $88.38 per barrel in New York. The London Metal Exchange Index of six metals, including copper and aluminum, slid for the second day, losing 0.2 … “Slump of Commodities Weakens Australian Dollar”
Dollar Gains on Optimism for US Jobs Market
The US dollar rallied as the improving labor market in the US increased the attractiveness of the greenback, while the equities and the commodities declined. The report about the employment, released on January 5th, caused the surge of optimism for the US jobs market. Yesterday’s report about the unemployment claims subdued hopes as it was not as good as expected, showing the increase from 391,000 to 409,000, instead of expected 400,000. Still, optimism hasn’t gone away and the experts predict today’s non-farmpay-rolls … “Dollar Gains on Optimism for US Jobs Market”
European Bank Defaults Draft
The European Commission has released the first paper discussing the methods for defaults of European banks. It may be called burden sharing, restructuring, or just not paying the debt. The paper is a draft, which is open to contributions until March 3rd, and aims for official approval by the summer. More details brought Tracy Alloway. … “European Bank Defaults Draft”
Rand Drops for Fourth Day on Weaker Commodities & Strong Dollar
The South African rand extended its decline versus the US dollar today as the favorable US economic reports strengthened the dollar, while the slump of commodities weakened the rand. The good economic data from the US this week, including reports about the services industries and the employment, allowed the US currency to strengthen. At the same time, commodities were declining, causing the riskier currencies, including the rand, to weaken. The economists say that it’s just temporary … “Rand Drops for Fourth Day on Weaker Commodities & Strong Dollar”
Great Britain Pound Weakens After Bad PMI Services Report
The Great Britain pound weakened today after the report showed that Britain’s services PMI dropped lower than was forecast by the analysts as a result of the poor weather and snow. The Markit Services PMI dropped from 53.0 in November to 49.7 in December. The predicted value was 52.9. The report attributed the decline to the bad weather and the weak demand from the public sector and said that “underlying trends remained subdued”. GBP/USD declined from 1.5513 … “Great Britain Pound Weakens After Bad PMI Services Report”
GFT Rebates – Switch Brokers Easily?
GFT wants more forex traders, and offers a nice incentive to woo them from other brokers – a one pip rebate for every trade the trader made – as long as they prove they have another account. This promotion is very interesting because of the targeting – GFT targets only existing forex traders, excluding newbies. … “GFT Rebates – Switch Brokers Easily?”
Eur/Usd Triangle-Follow Up
Triangle formation is acting very well so far, as the Eur fell quite sharply yesterday against the US dollar down to 1.3120 region. You will notice that pair found the base exactly at the lower support line of a triangle, so a pull-back will likely appear from this region into a wave E, final leg … “Eur/Usd Triangle-Follow Up”
Canadian Dollar Rallies as Commodities & Stocks Gain
The Canadian dollar rallied today after the significant growth of the US employment boosted commodities, including crude oil, and stocks, increasing demand for the currencies linked to economic growth. Employment in the US posted the tremendous growth of 297,000 in December, which is almost three times as big as forecasts promised. The good news increased investors’ risk appetite and spurred commodities. February delivery for crude oil, the main Canada’s export, advanced as much as 1.1 percent … “Canadian Dollar Rallies as Commodities & Stocks Gain”