Anti-inflationary measures conducted by the financial authorities of China press on the currency of its close trade partner — Australia, sending it down not worse than the floods. While the developed economies of West have just began to recover from the global financial crisis, the emerging Asian countries are already struggling with elevated inflation. Following the measures conducted by Thailand and South Korea, China continues to curb the liquidity in order to cut the consumer price … “Chinese Inflation Fighting Weights AUD”
Month: January 2011
Dollar Continues Its Decline on Poor Consumer Sentiment
The US currency continued its decline against the major currencies today, as the internal macroeconomic reports suggested that the situation with the US consumer sector isn’t as good as it seemed. The dollar has posted a third bearish day against the Japanese yen, a fifth bearish session against the euro and a sixth daily drop against the Great Britain pound. The current series of daily declines follows a rather long rally of the US currency. December … “Dollar Continues Its Decline on Poor Consumer Sentiment”
Euro Climbs Despite Decline of Commodities
The euro continues to show an impressive performance as optimism about the ability of the European Union’s leaders to deal with the region’s financial crisis grows every day. The size of the EU rescue fund may be increased as Angela Merkel, the Chancellor of Germany, admitted that she’ll go to any length to deal with the European problems. Jean-Claude Trichet, the President of the European Central Bank, signaled that he may consider increasing the interest rates as the inflation … “Euro Climbs Despite Decline of Commodities”
Loonie Weakens as Rally of Commodities Slows
The Canadian dollar fell today after the report showed that number of unemployment claims in the US increased and on the speculation that the rally of commodities and stocks isn’t sustainable. The currency attempts to recover against the US dollar at present. The number of claims for the unemployment benefits in the US rose from 410,000 to 445,000 last week. The report was rather depressing as the market participants expected decrease to 405,000. Together with the discouraging data from the previous week today’s … “Loonie Weakens as Rally of Commodities Slows”
Sterling Falls vs. Euro as Key Interest Rate Remains Unchanged
The Great Britain pound weakened versus the euro today as Britain’s central bank kept the interest rates unchanged and the outlook for European economy improved. The currency continued its advance against the US dollar. Mervyn King, the Governor of the Bank of England, and the Monetary Policy Committee left the key interest rate at the record low 0.5 percent and the program of asset purchases at £200 billion. The outlook for resolution of the European debt crisis improved as demand for Spanish bonds … “Sterling Falls vs. Euro as Key Interest Rate Remains Unchanged”
Chilean Peso Rises with Inflation Expectations
The Chilean peso rose today as the inflation is expected to jump to the highest level in two years, causing the analysts to scrap forecasts that the interest rates won’t be increased. Chilean official announced plans to buy the US dollar, weakening the peso initially, but causing the speculation that the inflation may surge to 3.6 percent by the end of the year. Higher inflation expectations prompted the analysts to expect the interest rates hike, perhaps to 3.5 percent. … “Chilean Peso Rises with Inflation Expectations”
Canadian Dollar Benefits from Rising Stocks & Commodities
The Canadian dollar rose against its US counterpart as commodities and stocks gained, increasing attractiveness of assets related to economic growth, on the speculation that the European crisis may be resolved. February delivery for crude oil, the key Canadian export, jumped $0.75 to $91.86 per barrel on NYMEX as US crude oil inventories decreased more than was predicted. March delivery for in copper advanced $0.0405 (0.9 percent) to $4.3895 per on COMEX. … “Canadian Dollar Benefits from Rising Stocks & Commodities”
Swiss Franc Weakens vs. Euro as Worries for Debt Crisis Abate
The Swiss franc weakened versus the euro as the efforts of the European and Asian governments to contain the European debt crisis and the advance of commodities and stocks decreased demand for the currency as a safe haven. Portuguese bonds advanced in the second half of the previous trading session after Portugal auctioned its debt in the first half. European leaders are going to meet next week in order to discuss the bailout for Portugal. The rescue fund, used to bailout indebted nations, may be … “Swiss Franc Weakens vs. Euro as Worries for Debt Crisis Abate”
China Allows Yuan Appreciate, Can It Do So?
The Chinese yuan appreciated today on the speculation that China will allow its currency to strengthen ahead of the President’s Hu Jintao visit to the US next week. The analysts have divided opinions on the ability of the yuan to appreciate. Dariusz Kowalczyk, an economist at Credit Agricole CIB, said that “China has managed the currency in such a way that it has depreciated versus the basket, which gives it room to appreciate”. Philip Wee, an economist … “China Allows Yuan Appreciate, Can It Do So?”
Euro’s Rally Loses Momentum
The euro continued to rise against the US dollar on the speculation that the Asian countries will aid the Eurozone, but the currency tends to decline as many traders think that it’s a temporary solution at best. The investors’ sentiment about the euro improved slightly after China and Japan announced their plans to buy the European debt. Additional yield investors demand to hold Irish, Italian, Portuguese and Spanish bonds instead of German bunds decreased. The rally … “Euro’s Rally Loses Momentum”