The South Korean won climbed today as outlook for higher consumer prices growth compared to the previous estimates increased appeal of the nation’s assets. According to the statement of the presidential office, the growth of the consumer-price inflation will reach 4 percent this year, compared to the official target of 3 percent. It looks like the Asian nations fare much better than western countries these days and that attracts investors to the region. Currently, markets in the “risk-on … “Korea’s Won Jumps on Inflation Forecast”
Month: June 2011
Will ECB Raise Interest Rates? Can Euro Support Its Gains?
The euro extended its rally today for the third day on the speculation that the European Central Bank will boost its interest rates even amid the debt crisis in the Eurozone. ECB President Jean-Claude Trichet said yesterday that the policy makers are in “strong vigilance mode”, bolstering the outlook that the bank will increase the borrowing costs next week in order to rein inflation. Greek labor unions closed government institutions as people … “Will ECB Raise Interest Rates? Can Euro Support Its Gains?”
Australian Dollar: Strength is coming back
After a long time, market is finally showing some clarity here. The risk trade is on, but to be completely confirmed, we want to see a daily close above 1298 resistance region on the S&P500. This would then confirm a new stage for a coming strength on stocks, which will also support some major currencies … “Australian Dollar: Strength is coming back”
EUR/USD: Trading the US Pending Home Sales Release
US Pending Home Sales always rock the markets, especially when the change is large, like last time. The upcoming release provides a trading opportunity. Here are the details, and 5 possible outcomes for EUR/USD. Published on Wednesday, June 29th, at 14:00 GMT. Indicator Background The process of home transactions is long. It takes time between … “EUR/USD: Trading the US Pending Home Sales Release”
Loonie Gets Help from Stocks & Commodities
The Canadian dollar advanced for the second day before the start of the current trading session as the rally of the global stocks and commodities bolstered growth-related currencies. Currently markets are driven by hopes for positive outcome of the austerity vote tomorrow. August future for delivery of crude oil, the major export of Canada, gained as much as 2.8 percent to $93.14 per barrel in New York. The Standard & Poorâs 500 Index advanced 1.3 percent, posting the second day … “Loonie Gets Help from Stocks & Commodities”
Franc Posts New Record vs. Dollar on Private Consumption
The Swiss franc jumped today, reaching new all-time record against the US dollar, as the Swiss consumer demand improved last month. The optimism for Greece allowed the euro to outperform the Swiss currency, though. The UBS consumption indicator advanced by 0.34 points to 1.91 in May, the highest level since August 2010. The main contributor to the increase was the new car registrations. The retail sales were also responsible for the rise of the consumer demand. The report said … “Franc Posts New Record vs. Dollar on Private Consumption”
Hopes for Greece Bolster Malaysia’s Ringgit
The Asian currencies, including the Malaysian ringgit, rallied today on hopes that debtors will extend maturities of the nation’s debt and the Greek austerity vote will pass. Greece’s Prime Minister George Papandreou urged the nation’s policy makers yesterday to listen to their “patriotic conscience” and support the additional tightening measures. If the politicians won’t agree on the austerity the Eurozone may face its first default in history. But market participants remain hopeful … “Hopes for Greece Bolster Malaysia’s Ringgit”
Canadian Dollar Consolidating, EUR/GBP Reverses Gains
USDCAD: Consolidating With Upside Bias USDCAD: Price hesitation may have set in ahead of its long term falling trend line but USDCAD continues to maintain its overall short term upside.An attempt on the mentioned trendline is likely on ending its present hesitation. A convincing violation of that level will call for further strength towards the … “Canadian Dollar Consolidating, EUR/GBP Reverses Gains”
Sterling Trades Lower with Widening Current Account Deficit
The Great Britain pound dropped today as the signs of the UK economic slowdown led to the speculation that the nation’s central bank will be forced to maintain stimulus. The UK current account posted the deficit of £9.4 billion in the first quarter of 2011, down from the revised deficit of £13.0 billion in the previous quarter. The gross domestic product grew by 0.5 percent in the Q1 2011, in line with the previous estimates. The business investment in the first three months … “Sterling Trades Lower with Widening Current Account Deficit”
GBP/USD Lower on Weak Current Account
The pound retreated from the round 1.60 area on a weak current account figure. The deficit was almost double the early expectations, and hit 9.4 billion. A deficit of 5 billion pounds was predicted. Also the deficit for Q4 was revised to the downside, from 10.5 to 13 billion. British GDP came out at as … “GBP/USD Lower on Weak Current Account”