The Canadian dollar weakened today as China boosted the lending rates to stem its economic growth, reducing appeal of growth-related currencies. China’s decision to increase the rates had a negative impact on market sentiment. Together with the cut of Portugal’s credit rating by Moody’s, it significantly reduced investors’ willingness to risk. The domestic economic environment also wasn’t particularly supportive for the loonie. The Industrial Product Price Index fell 0.2 percent in May from … “Canadian Dollar Falls as China Raises Interest Rates”
Month: July 2011
Is Trichet Bold Enough to Change His Mind?
At this time three years ago, Trichet raised the rates just before the global financial system collapsed. He found himself slashing the rates quickly afterwards. It’s not only a fresh round of the debt crisis that poses a risk. There are many signs of a slowdown at the euro-zone’s strongest countries and all over the … “Is Trichet Bold Enough to Change His Mind?”
Search for Higher Yield Draw Investors to Kiwi
The New Zealand dollar advanced today as the rally of stocks and commodities increased attractiveness of the currency to investors that look for higher-yielding assets. The MSCI Asia Pacific Index of regional shares rose 0.3 percent today, while the Thomson Reuters/Jefferies CRB Index of raw materials gained 1.5 percent yesterday. The report of the New Zealand Institute of Economic Research showed that the business confidence index rose to 27 in the second quarter of this year from … “Search for Higher Yield Draw Investors to Kiwi”
Ruble Falls with Crude Oil
The Russian ruble fell today, after five sessions of gains against the US dollar, as crude oil, the main source of the nation’s export revenue, trimmed gains in New York. August contract for crude oil delivery traded little changed at $96.87 per barrel after it advanced earlier by $0.9 per barrel. Crude paired its gains in New York after the dollar advanced versus the euro. The ruble fell 0.3 percent, … “Ruble Falls with Crude Oil”
Greek Selective Default Already Accounted For
While talks continue on private sector contribution to a second bailout package for Greece, the market is already taking this into consideration. John Kicklighter from DailyFX discusses this option, the upcoming ECB rate decision, the meaning of the end of QE2 and other fundamental questions: JOHN KICKLIGHTER – Currency StrategistOffice: San FranciscoBio: John Kicklighter is … “Greek Selective Default Already Accounted For”
RBA Maintains Interest Rates, AUD/USD Falls
The Australian dollar fell against its US counterpart, rose versus the euro and was little changed against the Japanese yen after the nation’s central bank kept its interest rates unchanged and the trade balance surplus increased. The Reserve Bank of Australia kept its benchmark Cash Rate at 4.75 percent. RBA Governor Glenn Stevens said in his statement after the decision: A gradual recovery from the floods and cyclones over the summer … “RBA Maintains Interest Rates, AUD/USD Falls”
Portugal’s Credit Rating Now Junk, Euro Feels Bad
The euro slumped today, falling against the US dollar for the first time after six sessions of gains, as Moody’s downgraded Portugal’s rating to junk today. Moody’s Investors Service cut the credit rating of Portugal to Ba2 from Baa1, two levels below investment grade, and assigned a negative outlook today. The agency explained its decision by two factors: 1. The growing risk that Portugal will require a second round of official financing … “Portugal’s Credit Rating Now Junk, Euro Feels Bad”
NZD/USD: Trading the New Zealand GDP Release
After NZD/USD tested new highs, it will now face a significant test with the release of GDP in New Zealand. The publication, which is first and final, provides a trading opportunity. Here are the details and 5 possible scenarios for NZD/USD. Update: The publication was postponed by one week, to July 13th, 22:45 GMT. Indicator … “NZD/USD: Trading the New Zealand GDP Release”
Rand Weakened by Credit Rating Outlook for Greece
The South African Rand fell today as the speculation that Standard & Poor’s may issue a default rating for Greece reduced attractiveness of riskier currencies. S&P said yesterday that the rollover plan for Greece can result in a “selective default” rating. Platinum, one of major export revenue sources for South Africa, fell by 0.8 percent per ounce. The rand reversed its decline, but currently remains below the opening price. USD/ZAR … “Rand Weakened by Credit Rating Outlook for Greece”
Services PMI Boosts Pound in Short-Term, Outlook Remains Negative
The report about the UK Services PMI showed an unexpected growth, bolstering the Great Britain pound, but it can’t be considered completely positive as the data showed an underlying weakness of Britain’s economy. The Markit/CIPS UK Services PMI advanced from 53.8 in May to 53.9 in June, while it was expected to drop to 53.6. Yet the report stated that the rate of expansion was below trend and the growth of new businesses slowed last … “Services PMI Boosts Pound in Short-Term, Outlook Remains Negative”