The Swiss franc gained after demand for safe assets was boosted by the downgrade of Greece’s credit rating by Fitch Ratings. Fitch cut Greece’s rating to ‘B+’ and put it on the negative watch. The rating agency explained this decision: The ‘B+’ rating incorporates Fitch’s expectation that substantial new money will be provided to Greece by the EU and IMF and that Greek sovereign bonds will not be subject to a ‘soft restructuring’ or ‘re-profiling‘ … “Gains of Franc on Greece’s Downgrade & US Problems”
Month: May 2011
Canada’s Dollar Falls with Retail Sales & Inflation Growth
The Canadian dollar weakened today against the US dollar and the Japanese yen after the reports showed that the inflation increased less than predicted and the core retail sales unexpectedly dropped. The currency advanced against the euro. The consumer prices index rose 0.3 percent in April, on a seasonally adjusted monthly basis, following the 1.1 percent increased in March. Analysts predicted the 0.5 percent growth. The retail sales were unchanged at $37.3 billion in March. … “Canada’s Dollar Falls with Retail Sales & Inflation Growth”
New Zealand Dollar Gains on Good Economic Outlook
The New Zealand dollar strengthened today as the positive outlook for the growth of the nation’s economy increased attractiveness of the currency. New Zealand’s government estimated an operating surplus of NZ$1.3 billion in the year ending June 2015. Bill English, the nation’s Finance Minister, stated that the government would save NZ$5.2 billion over four years to spend on health, education and rebuilding after two earthquakes in Christchurch. Goldman Sachs Group Inc. raised its New … “New Zealand Dollar Gains on Good Economic Outlook”
Euro Slips as Bundesbank Warns Germany’s Economy May Slow
Germany’s Bundesbank said that the growth of the nation’s gross domestic product can lose momentum, signaling that the major European economy isn’t as strong as was considered before and sending the euro tumbling down. The Bundesbank said today in its monthly bulletin that “growth is likely to ease somewhat in the foreseeable future” and that the 1.5 percent GDP growth in the first quarter of this year “considerably overstates the underlying economic momentum. Output … “Euro Slips as Bundesbank Warns Germany’s Economy May Slow”
US Dollar Falls as Economy Weakens
The US dollar declined as the signs of the weakening US economy caused speculation that the Federal Reserve will maintain its quantitative easing program, undermining dollar’s strength. The existing home sales decreased 0.8 percent to a seasonally adjusted annual rate of 5.05 million in April from 5.09 million in March. The Business Outlook Survey of the Federal Reserve Bank of Philadelphia showed that the manufacturing index slumped to 3.9 in May from 18.5 in April, … “US Dollar Falls as Economy Weakens”
Gold and USD/JPY Technical Analysis
GOLD: Struggles To Put In A Bottom. GOLD: Vulnerability to the downside is not over yet as the commodity is struggling to recover higher following it’s a bounce off the 1,470.90 level on Tuesday. Guest post by www.fxtechstrategy.com However, we will like to see a break and hold above the 1.526.26 level, its May 11’2011 high … “Gold and USD/JPY Technical Analysis”
Rand Erases Losses, But Can It Continue Go Higher?
The South African rand erased today’s loses versus the US dollar and continue to rise for the fourth straight session as consumer inflation accelerated. South Africa’s consumer prices grew 4.2 percent in April, following the 4.1 percent increase in March. The rand is threatened by declining commodity prices, though, as the major economies across the world show signs of weakness. Gold and platinum, the major sources of the nation’s export revenue, dropped, while copper retreated … “Rand Erases Losses, But Can It Continue Go Higher?”
Swiss Franc Goes Lower with Economic Expectations
The Swiss franc weakened today as the economic expectations for the Swiss economy deteriorated, making Switzerland’s “safe” currency look less safe. The ZEW Economic Expectations indicator dropped sharply in May, falling from the April value of 8.8 to -11.5 this month. The fears of the negative influence of the European debt crisis and the strong franc on Switzerland’s economy caused such negative outlook. On the other hand, the assessment of the current economic situation improved and the relevant indicator increased … “Swiss Franc Goes Lower with Economic Expectations”
Canadian Dollar Advances with Stocks & Commodities
The Canadian dollar gained today as stocks and commodities, including crude oil, rebounded, increasing demand for currencies tied to economic growth. The currency retreated against the euro. The Thomson Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 2.6 percent. Crude oil rose above the $100 per barrel level. Raw materials makes up about half of Canadaâs export revenue, while crude is the main export. The Canadian currency … “Canadian Dollar Advances with Stocks & Commodities”
Yen Loses Strength on Poor GDP, Rebound of Stocks & Commodities
The Japanese yen fell today as commodities and stocks recovered, decreasing demand for the currency as a safe haven, while the nation’s economy continued to weaken. The Thomson Reuters/Jefferies CRB Index of raw materials rose 2.3 percent yesterday, posting the first gain in four sessions. Japanâs Nikkei 225 Stock Average gained 0.3 percent today. Japans gross domestic product shrank 0.9 percent last quarter, according to the preliminary estimate of the Cabinet Office, … “Yen Loses Strength on Poor GDP, Rebound of Stocks & Commodities”