The Australian dollar surged after the report showed that that the export and import prices rose in the first quarter of 2011, signaling that the economic recovery gains momentum. The Australian export prices surged 5.2 in the three month through March this year. The import prices rose 1.4 percent, following the drop by 3.8 percent in the previous quarter. The expected growth of the import prices was 0.8 percent. The MSCI World Index of stocks climbed … “Aussie Jumps to New Record on Higher Export & Import Prices”
Month: April 2011
Pound Down vs. Euro, Up vs. Dollar & Yen on BoE Minutes
The Great Britain pound weakened today against the euro as investors reduced their bets on an interest rates hike after the release of the policy meeting minutes by the Bank of England. The currency gained versus the US dollar and the Japanese yen as the minutes pointed on some positive signs in Britain’s economy. The Minutes of the Monetary Policy Committee Meeting spoke about unfavorable economic data that shows weakness of the UK economy. In particular, the consumer spending weakened as the household … “Pound Down vs. Euro, Up vs. Dollar & Yen on BoE Minutes”
EUR/JPY Recovers Higher
EURJPY is on a second day of recovery following its recent corrective weakness. However, we will like to see it return above the 123.29 level, its 2011 high to convince the market it has ended that correction. Guest post by www.fxtechstrategy.com This will resume its medium term uptrend towards the 124.00 level. Further price extension … “EUR/JPY Recovers Higher”
Greek Default to Start Huge Credit Crunch?
There’s a rumor in the market about Greece “restructuring” its debt over the weekend. The Euro currently shrugs it off. But an unprecedented default in one of the Euro-zone countries is could have huge implications. Will this start a bigger snow ball than the Greek bailout? The whole European banking system is endangered and the … “Greek Default to Start Huge Credit Crunch?”
Swedish Krona Surges to 2.5-Year Record on Higher Rates
The Swedish krona jumped to the highest level in more than two and a half years after the central bank raised the interest rates to slow the inflation. The Riksbank, the Swedish central bank, increased its target rate by 25 basis points to 1.75 percent, in line with forecasts. The bank maintained its rates outlook at the average 2.5 in the first quarter of 2012 and 3.2 percent in the first quarter of 2013. The central bank estimated that Sweden’s economy … “Swedish Krona Surges to 2.5-Year Record on Higher Rates”
Recovery in risk appetite thwarts the dollar
After a sharp flight from risk on the first day of this week, investors rapidly recovered their poise yesterday and again overnight. Decent manufacturing and services PMI data out of Germany and France, better-than-expected housing news from the US, and strong earnings news from the likes of Intel and IBM helped placate fears that the … “Recovery in risk appetite thwarts the dollar”
Rand Jumps on Expectation of Higher Interest Rates
The South African rand climbed today on the speculation that the accelerating inflation will prompt the nation’s central bank to increase the borrowing costs. Reserve Bank Deputy Governor Daniel Mminele said that data shows an “accelerating trend” in the food prices. He added that influence of higher food and fuel prices on prices for other goods “need to be monitored very closely”. The government report about the inflation will be released today. … “Rand Jumps on Expectation of Higher Interest Rates”
Canadian Dollar Rises as CPI Surges
The Canadian dollar gained today after the report showed that the inflation growth was stronger than anticipated, renewing talks about possible interest rates hike on the next meeting of the central bank policy makers. The consumer prices in Canada rose 0.8 percent from February to March, on a seasonally adjusted monthly basis, the largest increase since October 2010. The composite leading index posted the increase by 0.8 percent in March, following the 1.1 … “Canadian Dollar Rises as CPI Surges”
Euro Gains Even Amid Debt Crisis
The euro posted the unexpectedly strong gains today despite speculations about possible default of Greece and spreading of the sovereign-debt crisis continue to plague markets. The reason for such surprising performance was anticipation of another interest rates hike by the European Central Bank. ECB governing council member Nout Wellink said that the recent increase of the interest rates was an “extremely important” signal for investors that shows higher inflation shouldn’t be counted … “Euro Gains Even Amid Debt Crisis”
EURUSD: Breaks Below Rising Channel, Vulnerable
EURUSD: The pair has put its broader uptrend on hold after declining through its rising channel in place for about three months. This technical development has opened up risk to the downside with eyes on the 1.4061 level, its April 01’2011 low. Guest post by www.fxtechstrategy.com A trade below that level will call for a … “EURUSD: Breaks Below Rising Channel, Vulnerable”