The South African rand advanced as the South African officials said that they’re not planning a particular rate of exchange for the currency and are more worried about a depreciation than about an appreciation. Central bank’s Governor Gill Marcus said: The objective for us is to address the volatility of the currency and we do not target a particular rate of exchange. Finance Minister Pravin Gordhan said that a sharp depreciation of the nation’s currency can spur … “Rand Strengthens as Government Won’t Intervene”
Month: February 2011
Aussie Gains as Australian Economy Improves
The Australian dollar rose today against 15 of 16 most-traded currencies as the reports showed that the private capital expenditures increase and the leading indicators rose in December. The seasonally adjusted capital expenditure rose 1.3 percent in the last quarter of 2010. The growth was slower than in the previous quarter because of the impact of the flooding in Queensland. The Conference Board Leading Economic Index increased 0.7 percent in December. That’s compared to 0.2 percent in November. The good … “Aussie Gains as Australian Economy Improves”
ForexPlace Cleared of Charges in Preliminary Court Hearing
One month ago, I’ve reported about an attachment order against 4XP. Well, now the tables have turned in this case, as a preliminary court hearing now clears the company of wrongdoings, at least for now. Here are the full details, as given by the company: Following the initial shock of the alleged misconduct on Forex … “ForexPlace Cleared of Charges in Preliminary Court Hearing”
Pound Gains as More Policy Makers Vote for Rates Increase
The Great Britain pound rose today, erasing yesterday’s losses versus the US dollar, as third policy maker of the Bank of England joined those who are voting for an increase of the interest rates. The majority of the policy makers still believe that the rates should be left unchanged but the increasing number of the central bank’s members voting for an increase fuels the anticipation of the rates hike. The minutes of the Monetary Policy Committee said that: Andrew Sentance … “Pound Gains as More Policy Makers Vote for Rates Increase”
FX Pairs Mirror Oil Concern
Surging oil prices and a ravenous German economic growth rate, contributes towards a looming shadow of Euro Zone inflation. As a result, market sentiment is rife with conjecture surrounding a Euro interest rate adjustment and increasingly tied to the utterances of ECB members. ECB member, Yves Mersch shifted market balance towards a potential interest rate … “FX Pairs Mirror Oil Concern”
Euro Gains on Anticipation of Rates Increase by ECB
The euro rose today against the US dollar and the Japanese yen on the speculation that the surge of the oil prices will cause the European Central Bank to raise the interest rates to deal with the inflation. ECB President Jean-Claude Trichet said today that the policy makers will take actions to preserve the economic stability. The oil prices reached the highest level in two years as the conflict in Libya continues. EUR/USD rose from 1.3651 to 1.3756 today … “Euro Gains on Anticipation of Rates Increase by ECB”
NZD Recovers on Speculation Earthquake Won’t Cause Rate-Cut
The New Zealand dollar recovered today slightly, after yesterday’s decline on the earthquake in Christchurch, on the speculation that the markets overestimated the probability of interest rates cuts. The earthquake in Christchurch, the second- largest city of New Zealand, caused death of at least 75 people and the death toll will likely rise as the rescuers comb the ruins of buildings. Prime Minister John Key said that the disaster will likely to cost the reinsurers about NZ$5 billion ($3.7 … “NZD Recovers on Speculation Earthquake Won’t Cause Rate-Cut”
Japanese Yen Profits from Uprising in Libya
The Japanese yen strengthened yesterday, reaching the highest level in a week against the euro, as the turmoil in Libya increased demand for the safe currencies. Today the yen weakened somewhat. Human Rights Watch said that the crackdown on the protesters already left more than 200 dead. Libya’s leader Muammar al-Gaddafi stated that the uprising “will lead to civil war”. The conflict caused concerns about supplies of crude oil as Libya is one of the major … “Japanese Yen Profits from Uprising in Libya”
US budget impasse poses a big risk for the dollar
With markets transfixed by the unprecedented developments across the Middle East and North Africa, it is perhaps understandable that the emerging train-wreck that is US fiscal policy is not getting much attention. This is a mistake. Guest post by FxPro An unusual late-night session on Friday resulted in the Republican-led House of Representatives agreeing to chop … “US budget impasse poses a big risk for the dollar”
New Zealand Dollar Tumbles After Earthquake
The New Zealand dollar slumped today against all other 16 most-traded currencies after the earthquake strengthened the risk-aversion mood on the markets. The earthquake of 6.3-magnitude resulted in multiple deaths and ruined buildings. The tragedy intensified the risk aversion sentiment that already was bolstered by the tension in North Africa and Middle East. NZD/USD dropped from 0.7635 to 0.7491 as of 16:28 GMT today after it reached earlier the intraday low of 0.7454. If you have … “New Zealand Dollar Tumbles After Earthquake”