The South Korean won climbed today as the drop of unemployment claims in the US boosted demand for riskier assets, including Korea’ currency. The US jobless claims went down to 414,000 in the week ending June 11 from the previous week’s reading of 430,000. The forecast value was 421,000. The speculation that Greece may receive aid from outside of Europe (from the International Monetary Fund and China perhaps) also helped to increase attractiveness of higher-yielding … “US Jobless Claims Go Down, Korea’s Won Goes Up”
Month: June 2011
Will Merkel and Sarkozy Boost the Euro?
German chancellor Angela Merkel and French president Nicolas Sarkozy are meeting to discuss the situation in Greece and might come to some compromise regarding the participation of the private sector. The euro is currently rising on hope for some kind of solution. A positive statement can boost the euro and provide a better ending after … “Will Merkel and Sarkozy Boost the Euro?”
Australia’s Dollar Suffers from Europe’s Problems
The Australian dollar weakened as the unending troubles in Europe drove stocks and commodities to the downside, reducing appeal of currencies linked to economic growth. The Standard & Poorâs 500 Index dropped 0.4 percent. The MSCI World Index fell as much as 1.1 percent. The Thomson Reuters/Jefferies CRB Index of raw materials declined 0.6 percent, following the drop by 2.3 percent yesterday, the biggest slump in five weeks. Takuya Kawabata, the researcher Gaitame.com Research Institute … “Australia’s Dollar Suffers from Europe’s Problems”
US & Europe Drain Loonie’s Strength
The problems of Europe still plague markets and the unfavorable reports showed that the US manufacturing weakened. The resulting shift of markets to risk aversion mode was negative to the Canadian dollar. The New York Manufacturing Index fell to -7.8 in June from 11.9 in May and the Philly Fed Manufacturing Index slid to -7.7 from 3.9, while market participants expected the manufacturing to improve this month. The Standard & Poorâs 500 Index was up … “US & Europe Drain Loonie’s Strength”
SNB Keeps Rates Unchanged, Franc Climbs to New Record vs. Euro
The Swiss National Bank left its main interest rates unchanged today and predicted that the inflation will grow. The Swiss franc jumped, reaching the new all-time high versus the euro. The SNB maintained its key Libor rate at 0.25 percent today. Philipp Hildebrand, the Chairman of the SNB Governing Board, said in his introductory remarks at the press-conference that the economic recovery persists and the impact of the strong currency on the nation’s exporters is offset … “SNB Keeps Rates Unchanged, Franc Climbs to New Record vs. Euro”
The ECB needs a rethink on rates
In the wake of the ECB meeting last week, I detailed why I thought Trichet would go down in flames for signalling a July interest rate increase at a time when there were so many risks to the eurozone outlook, not least the fragility of the banking sector given the risk surrounding Greece. These risks … “The ECB needs a rethink on rates”
Great Britain Pound Goes Lower as Retail Sales Slump
The Great Britain dropped today after the report showed that the decline of retail sales in the UK last month was biggest that anticipated by analysts. The retail sales slid 1.4 percent in May from April, compared to the forecast of a 0.5 percent fall. The drop was both in value and volume. The report suggested that the sales fell because of “the economic climate, for example increasing fuel prices and uncertainty over job prospects and pay”. GBP/USD … “Great Britain Pound Goes Lower as Retail Sales Slump”
EUR/USD Under Pressure, Trading Towards 1.39
In just 24 hours Eur/Usd has broken through two very important trend lines, that will send this pair into much deeper levels. A key reversal level for this move occurred at 1.45, where a recent corrective pull-back labelled as a black wave 2/B has topped out. You will notice, that in late NY trade yesterday, … “EUR/USD Under Pressure, Trading Towards 1.39”
USD/JPY: Trading the US Consumer Sentiment
The preliminary release of US Consumer Sentiment by the University of Michigan is the last big release of the week and usually triggers action. Here is what expects us, and possible outcomes for USD/JPY, the preferred pair for the week’s last session. Published on Friday at 13:55 GMT. Indicator Background The University of Michigan, together … “USD/JPY: Trading the US Consumer Sentiment”
Swiss Franc Rallies vs. Euro on Protests in Greece
The Swiss franc rallied against the euro as people in Greece are protesting against the austerity measures and Greece’s Prime Minister George Papandreou may resign. The currency slipped versus the US dollar and the Japanese yen. As much as 20,000 protesters in Greece went on demonstrations against the planned wage cuts and tax increases. The police forces fired teargas at the protesters. Papandreou offered to resign to allow the formation of a unity government if all opposition parties would … “Swiss Franc Rallies vs. Euro on Protests in Greece”