The US dollar surged today, experiencing a very good beginning of the year as the macroeconomic reports post good results virtually every day. Today we had the reports about employment and services industries in the US, which confirmed the positive trend. The ADP National Employment Report showed that private-sector employment increased by 297,000 in December from the revised November increase of 92,000. The analysts predicted the increase to only 101,000. The Report On Business of the Institute for Supply … “US Dollar Rises with Employment & Services Index”
Month: January 2011
Irish Bank Defaults Ahead?
A draft paper a senior EU executive suggests that also senior debt holders would also take losses. This may apply to Allied Irish Banks (nyse:aib) and Bank of Ireland (nyse:ire). Both AIB and the Bank of Ireland have already “enjoyed” such bad rumors, but now that it appears in an official paper, it means trouble. … “Irish Bank Defaults Ahead?”
Euro Declines on German Unemployment & Greece’s Troubles
The euro slipped today on the speculation about Greece’s default and after the report showed that the unemployment in Germany rose, renewing the talks about collapse of the Eurozone. The unemployment rate in Germany, which was steadily declining through 2010, unexpectedly rose by 3,000 in December, following the decline by 8,000 a month earlier. It was expected to drop by 12,000 in December. Greece’s finance minister stated that Greece is not discussing the debt restructuring, resulting … “Euro Declines on German Unemployment & Greece’s Troubles”
Intervention Causes 20-Year Record Decline of Chilean Peso
The Chilean peso dropped today most in twenty years after the central bank announced its intention to purchase $12 billion in the foreign-exchange market. Jose De Gregorio, the Governor of the Central Bank of Chile, also presented yesterday the plan to purchase $50 million per day from January 5th to February 9th. Previously the peso surged as the rally of copper prices improved the outlook for Chile’s economy. USD/CLP climbed today from 487.85 to 492.50 … “Intervention Causes 20-Year Record Decline of Chilean Peso”
Non-Farm Payrolls Preview – High Hopes
2011 begins with the last Non-Farm Payrolls report for 2010, and it will probably be a good one. Here’s what to look out for, and how it will impact currencies. The last Non-Farm Payrolls report, for November, was terrible. Only 39,000 were added, with weakness in all sectors. The expectations were for a much stronger … “Non-Farm Payrolls Preview – High Hopes”
British Construction Squeezes
The British construction sector contracted in December – the purchasing managers’ index fell under 50 points, meaning that the sector is contracting. The early expectations stood on growth – a score of 51.1 points. This is bad news, as the construction sector was supposed to be an engine of growth for the UK in Q4. … “British Construction Squeezes”
Canadian Dollar Falls with Crude Oil Prices
The Canadian dollar dropped against its US counterpart after crude oil, the main Canada’s export, declined together with other commodities, decreasing attractiveness of the currency. February delivery for crude oil fell down 2.5 percent to $89.23 per barrel. Yesterday it traded at $92.58, the highest level since October 7th, 2008. The stronger US dollar weakened other commodities too, damping demand for the growth-related currencies, including the loonie. … “Canadian Dollar Falls with Crude Oil Prices”
Risk Appetite Saps Strength of Swiss Franc
The Swiss franc was little changed after it dropped yesterday as the rally of stocks caused investors to turn their attention from the safe currencies to the higher-yielding ones. The Stoxx Europe 600 Index rose as much as 1.3 percent, while the Swiss equities gained. The franc advanced 8.1 percent in the previous year versus the basket of 10 major currencies amid demand for safety. It looks like now investors began favor risk. … “Risk Appetite Saps Strength of Swiss Franc”
Pound Jumps as Mortgage Approvals Advance
The Great Britain pound strengthened today after the report showed that the number of the mortgage approvals unexpectedly increased in November. The number of loan approvals for house purchase slightly increased from the October figure of 47,315 to 48,019 in November. The expected value was 46,500. Total lending to individuals rose £0.7 billion in November. GBP/USD jumped from 1.5485 to 1.5627 as of 13:41 GMT today, while GBP/JPY advanced from 126.58 to 128.37. If you have … “Pound Jumps as Mortgage Approvals Advance”
11 Forex Predictions for 2011
Exciting 2010 is behind us, and it’s time to discuss what can happen in 2011. Here are the expectations for currency movements and also for trends in forex trading. It’s very hard to make predictions for a full year, because so much can happen, but there are some trends that can continue or fade away. … “11 Forex Predictions for 2011”