The Great Britain pound slumped today after the report showed that Britain’s GDP unexpectedly shrank, causing doubts about the nation’s ability to deal with the budget deficit. The UK gross domestic product decreased by 0.5 percent in the fourth quarter of 2010, compared with the increase of 0.7 percent in the previous quarter. The forecasts promised an increase by the same 0.5 rate. The report explained the decrease mainly by bad weather. GBP/USD tumbled from 1.5986 … “Declining UK GDP Hurts British Pound”
Month: January 2011
USD/CAD Rises on Low Canadian Inflation
Prices in Canada aren’t rising – CPI hasn’t changed in December and Core CPI dropped by 0.3%. This was lower than the already low expectations. This reduces the chances for a rate hike in Canada. The Canadian dollar retreats against the US dollar. USD/CAD now approaches parity once again after sitting at around 0.99 early … “USD/CAD Rises on Low Canadian Inflation”
Reality Bites GB£
Following the shocking news about British economy squeezing in Q4, here’s some advice on what needs to be done in Britain, and what this means for the British pound. Guest post by Bob Nielsen On 19 Jan 11 Yohay posted a brief comment from me titled ‘The Long Trend for GB‘, on the relevance of the … “Reality Bites GB£”
Loonie Falls with Crude Oil Prices, Regains Strength vs. Greenback
The Canadian dollar weakened on the signs of increasing supplies of crude oil, the main export of Canada, yet the currency managed to rebound versus its US counterpart as the stocks rallied. The Canadian dollar slipped after Ali al-Naimi, the Saudi Arabian Minister of Petroleum and Mineral Resources, said that the Organization of the Petroleum Exporting Countries will be able to meet the growing demand and signaled that Saudi Arabia isn’t interested in increasing oil prices. The possibility … “Loonie Falls with Crude Oil Prices, Regains Strength vs. Greenback”
AUD Rises with Stocks, But Australian Economy Remains in Danger
The Australian dollar strengthened today as the rally of stocks increased appeal of the riskier assets, but the concerns about the impact of the floods on the Australian economy persist and may curb the currency’s gains. The improving outlook for the global economy, and the US economy in particular, helped the equities to regain some strength, boosting the commodity currencies. The Standard & Poorâs 500 Index gained 0.5 percent as a result of the improving risk sentiment. “Risk sentiment is higher and equities are … “AUD Rises with Stocks, But Australian Economy Remains in Danger”
Assets of Forex Broker Seized After Trading Against A
An Israeli court has ordered a seizure order against Forex Place in a size of around $1.7 million for financial mismanagement in running a client’s account. The trader showed that the broker was trading against him and got a warrant to seize the broker’s assets. Here are more details. Update: The courts cleared the company of … “Assets of Forex Broker Seized After Trading Against A”
Mexican Peso Declines as Interest Rates Remain Unchanged
The Mexican peso slightly dropped today as the central bank kept the interest rates unchanged for the record stretch of time and suggested that that it may keep the rates at the present levels even longer. Banco de Mexico kept its benchmark rate at 4.5 percent as was expected. The rate was unchanged for 16 consecutive months. Agustin Carstens, the Governor of the Bank of Mexico, explained this decision by the concern that the inflation would slow … “Mexican Peso Declines as Interest Rates Remain Unchanged”
US Dollar Recovers on Outlook for GDP & Consumer Sentiment
The US dollar pared its losses on the forecasts that the reports this week would show that the pace of GDP growth increased and the consumer confidence improved in the US. The analysts estimated that the US gross domestic product rose at the 3.5 percent annual pace last quarter, compared to the 2.6 percent rate in the third quarter of 2010. The analysts also expect the report to show tomorrow that the consumer confidence index of the US Conference Board … “US Dollar Recovers on Outlook for GDP & Consumer Sentiment”
Does Lower Oil Signal For Stocks Reversal!?
Oil was one of the weakest markets for the past few trading days. Today is down more than 1.50%, despite US dollar weakness that we are seeing across the board, driving by higher stock market. However, on the next Daily overlay chart between the S&P and oil prices you can see that these two markets … “Does Lower Oil Signal For Stocks Reversal!?”
Swiss Franc Advances Thanks to Increased Money Supply
The Swiss franc rose against all other major currencies except euro today, as the traders reacted on increased M3 money supply as a sign of a probability for a stricter monetary policy in the future, despite the commentaries by the central bank president. The franc advanced against the US dollar and the Japanese yen, while staying near the opening level against the single European currency today. The Swiss National Bank released its statistical report today showing a growth … “Swiss Franc Advances Thanks to Increased Money Supply”