Euro reversing from its highs, as stocks found some sellers during the FOMC Press Conference. US dollar was mostly stronger, but Canadian dollar was acting quite well during this time. As such, we looked at some crosses, and Eur/Cad should be really interesting. We are expecting a rise of Canadian dollar against the Euro even … “EUR/CAD Going Lower”
Month: June 2011
Fed Keeps Rates Unchanged, Dollar Rises vs. Euro on Greece
The US dollar gained today versus the euro as the impact of the situation in Greece outweighed the dovish statement of the Federal Open Market Committee. The FOMC kept the main Federal Funds Rate near zero and said in its statement: The Committee continues to anticipate that economic conditionsâincluding low rates of resource utilization and a subdued outlook for inflation over the medium runâare likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee will … “Fed Keeps Rates Unchanged, Dollar Rises vs. Euro on Greece”
Bankers & Fools
After a tense week with world markets teetering on the edge of collapse Angela Merkle finally met with her French counterpart Nicholas Sarkozy and they ended the seventh month chill in their once cozy relationship. According to The Independent, they faced a serious impasse regarding bank haircuts in the “déjà vu all over again” Greek financial … “Bankers & Fools”
Euro Falls After Confidence Vote
The euro dropped today even after Greece’s Prime Minister George Papandreou won the confidence vote as traders think that he’ll struggle to implement austerity measures. Jeremy Stretch, the executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce, said: Markets are refocusing on the fact that the euro zone has dodged the bullet in terms of the confidence vote, but now we are looking forward to the austerity vote. Whether the response … “Euro Falls After Confidence Vote”
Pound Falls as Minutes Signal About More Stimulus
The Great Britain pound dropped today as the minutes of the Bank of England monetary policy meeting showed that most of the policy makers voted to keep lending rates unchanged and suggested that further easing may be possible. Seven of the Monetary Policy Committee members voted to keep the rates stable, while only two voted for an increase. On the previous meeting three members voted for higher interest rates. The minutes said that “the current weakness … “Pound Falls as Minutes Signal About More Stimulus”
Kiwi Fluctuates, Can Become Stronger on Current Account
The New Zealand dollar fluctuated today after it rose yesterday as the nation’s current account deficit shrank more that was predicted by economists. The New Zealand current account deficit (seasonally adjusted) decreased by $1.1 billion from the fourth quarter of 2010 to $1.8 billion in the first three month of 2011. The net international liabilities fell by $10.4 billion from Q4 2010 to $148.2 billion in March quarter of 2011. The kiwi, as the New … “Kiwi Fluctuates, Can Become Stronger on Current Account”
Papandreou May Win Confidence Vote, Euro Rises
The euro gained today as stocks and commodities rallied on the speculation that Greek Prime Minister George Papandreou will win a confidence vote in the parliament. Papandreou needs parliamentary approval of budget and asset sales that are required to receive the bailout from the European Union and the loan from the International Monetary Fund. It’s hard for the Greek government to press the planned austerity measures as most Greeks understandably aren’t fond of spending cuts. But Forex … “Papandreou May Win Confidence Vote, Euro Rises”
Sheqel Gains on Interest Rates Swaps
The Israeli New Sheqel rose today as the difference between Israel’s and the US interest rates attracted investors to the currency. The Bank of Israel raise the key interest rate four times this, boosting the rate by 125 basis points to 3.25 percent. The last interest rates hike was on May 23, when the central bank increased the benchmark rate by quarter percentage point. The next policy meeting will be on June 27 and the bank is … “Sheqel Gains on Interest Rates Swaps”
Australian Dollar Falls on Monetary Policy Minutes
The Australian dollar weakened today after the minutes of the Reserve Bank of Australia monetary policy meeting indicated that there’ll be no increase of the interest rates in the near future. The minutes explained the difficulties of the Australian economy, including the declining GDP and the “soft” housing market, as well as influence of the foreign problems. The minutes said that “further tightening in monetary policy would be necessary at some point”. But the central bank’s policy makers remained … “Australian Dollar Falls on Monetary Policy Minutes”
Loonie Gains vs. Greenback on Fundamentals, Falls vs. Euro
The Canadian dollar advanced versus the US dollar on the good outlook for today’s Canadian macroeconomic reports, while fell against the euro as promises of resolution of the Greek crisis bolstered Europe’s shared currency. Analysts estimated, before the report from Statistics Canada, that the Canadian retail sales rose 0.6 percent in April. The core retail sales increased 0.5 percent, following the drop by 0.1 percent in April. The growth of the leading index was estimated … “Loonie Gains vs. Greenback on Fundamentals, Falls vs. Euro”