Uncertainty about the situation with Greece continues to plague the European Union, causing volatile swings of the euro. The currency erased its yesterday’s rally only to resume its upward movement and then drop again. German Chancellor Angela Merkel said yesterday that Greece has to proceed with the planned budget cuts to deserve an extension of the debt-repayment deadline. Merkel stated: We can offer solidarity only if Greeceâs stability and eagerness … “Euro Still Can’t Decide Where to Go”
Month: May 2011
China’s gradual economic rebalancing
Against the backdrop of crucial bilateral talks between the world’s two superpowers, it is clear that China increasingly understands the urgent need to undertake economic rebalancing. For instance, PBOC officials have repeatedly stated over recent months that a stronger exchange rate can play a part in inhibiting the build-up of inflationary pressures. This is a … “China’s gradual economic rebalancing”
Canadian Dollar Goes Up Together with Crude
The Canadian dollar extended its rally today, rising for fourth day against its US counterpart, as commodities, including crude oil, reversed the downward trend and rallied. Crude oil reached the highest price in four days on speculation that flooding of the Mississippi River will disrupt refineries. Valero Energy Corp., the biggest US refiner, has already reduced operations at its Memphis plant to about 80 percent of capacity because of the flooding. … “Canadian Dollar Goes Up Together with Crude”
USD/CHF Trades Higher While S&P500 Facing Resistance
The US stocks are up today, but looking on the 15min S&P500 chart, we can see only three waves of recovery from the lows, which could be a corrective move. In fact, we see a divergence on the MACD histogram with slower price action in wave C compared to wave A; which is a very … “USD/CHF Trades Higher While S&P500 Facing Resistance”
No Need for Safety, Swiss Franc Suffers
Commodities and global equities recovered today from the last week’s sharp decline, signaling that investors became less interested in safe assets. Such shift of market sentiment harmed the Swiss franc. Concerns about the sovereign-debt problems of Greece and the whole European Union subsided somewhat after the spokesman for German Chancellor Angela Merkel stated that a restructuring of Greeceâs debt wasn’t considered the EU official said the progress of Greece in fixing its … “No Need for Safety, Swiss Franc Suffers”
USDJPY: Consolidating
Dollar/yen: The pair is now consolidating following its hammer triggered recovery off the 79.59 level, its May 05’2011 low. On a further strength, the pair should aim at the 81.70 level, its May 02’2011 high with a violation of there targeting the 82.80 level, its April 27’2011 high. Guest post by www.fxtechstrategy.com A cap is … “USDJPY: Consolidating”
Currensee Launches First Portfolio Builder for Social Forex Investing
Currensee launches a new and impressing tool for assessing potential reward and risk before making an investment. This nice graphic tool, launched in FinovateSpring 2011 provides great previews of different investing portfolios using their Trade Leaders program. If you want to invest in currencies the same way you invest in mutual funds, you can invest in … “Currensee Launches First Portfolio Builder for Social Forex Investing”
Indonesian Rupiah Gains on Positive Growth Outlook
The Indonesian rupiah advanced for the third day today on positive outlook for the biggest economy of Southeast Asia, caused by the inflow of foreign funds. The government report showed last week that Indonesia’s gross domestic product grew 6.5 percent in the first quarter of 2011 from a year ago, following the growth by 6.89 percent in the fourth quarter of 2010. The currency appreciated 0.2 percent this month. Bambang Brodjonegoro, head of fiscal policy at the finance ministry, … “Indonesian Rupiah Gains on Positive Growth Outlook”
Japanese Yen Falls as Commodities & Stocks Rally
The Japanese yen dropped today after equities gained and commodities pared declines, reducing demand for safe currencies. The Japanese yen gained yesterday on fears of the sovereign-debt crisis in Europe. Today the currency erased its gains as commodities, including silver and copper, advanced. The Stoxx Europe 600 Index gained 0.6 percent and the MSCI Asia Pacific Index went up 0.2 percent. USD/JPY rose from 80.34 to 80.69 and EUR/JPY advanced from … “Japanese Yen Falls as Commodities & Stocks Rally”
New Zealand Dollar May Be Overvalued Says IMF
The New Zealand fell today, scrapping two sessions of the advance against the US dollar, as the International Monetary Fund said that the currency too overvalued. The IMF said that the New Zealand currency is 20 percent above the estimated equilibrium exchange rate. The high prices of the kiwi are partly caused by the large positive interest rate differential. The differential may be reduced as major banks may perform tightening in the future. New … “New Zealand Dollar May Be Overvalued Says IMF”