According to leaked documents from the EU summit, there is indeed some hope for the euro-zone: the leaders are shifting their focus on growth and not on austerity. This is a good first step that helps the euro, but more needs to be done. The EU provided 3 positive decisions. Two more are missing, and … “EU Leaders Finally Address Growth – More Steps Needed”
Month: July 2011
Aussie Goes Lower as China’s Manufacturing Slows
The Australian dollar fell today after the report showed a slowdown of China’s manufacturing. The slowdown may curb demand for commodities and that, in turn, would hurt Australia’s economy. The Flash China Manufacturing PMI fell to 48.9 in July from 50.1 in June. The Flash China Manufacturing Output Index dropped to 47.2 this month from 49.8 in the month before. Both indexes were at 28-month low. Hongbin Qu, Chief Economist, China & … “Aussie Goes Lower as China’s Manufacturing Slows”
Pound Weakens on Worsening Consumer Sentiment
The Great Britain pound weakened today after the report showed that confidence of UK consumers declined last month, signaling that Britain’s economy won’t likely to improve in the near future. The Consumer Confidence Index of Nationwide Building Society fell from 55 to 51 in June. The assessment of the present economic conditions was stable and the main reason for the decline was the worsening outlook for the future of the UK economy. Retail sales increased 0.7 percent … “Pound Weakens on Worsening Consumer Sentiment”
Optimism for Europe Returns, Greenback Suffers
The US dollar weakened today, falling to the lowest level in almost a week against the euro, as hopes that the European leaders would find a way out of crisis diminished need in safe currencies. The European politician will meet tomorrow at summit in Brussels. Forex market participants hope that the meeting will result in some cohesive plan to resolve current economic problems of the Eurozone and this optimism made traders prefer riskier assets. The Stoxx … “Optimism for Europe Returns, Greenback Suffers”
USD/JPY: Trading the Philly Fed Manufacturing Index
This survey is highly regarded by the markets, as it serves as an early indicator about the state of the economy. The upcoming release is of even higher importance after the shocking drop to negative territory reported last month. Here are the details and 5 scenarios for USD/JPY. Published on Thursday at 14:00 GMT. Indicator … “USD/JPY: Trading the Philly Fed Manufacturing Index”
Malaysian Ringgit Gains on US Housing & Global Stocks
The Malaysian ringgit strengthened today as the improving US hosing market and the advance of global equities increased attractiveness of higher-yielding currencies. The report yesterday showed that the US housing starts increased to 629,000 in June, compared to the expected value of 580,000. The Standard & Poorâs 500 Index surged 1.6 percent yesterday, while the MSCI Asia-Pacific Index of shares posted the biggest gain in a week. Malaysiaâs annual inflation reached the highest level in two years … “Malaysian Ringgit Gains on US Housing & Global Stocks”
GBP/USD Erases Losses After BOE Minutes
The Great Britain pound erased losses against the US dollar after the minutes of the central bank’s policy meeting showed that most policy makers voted against increasing size of bond purchases. The minutes of Monetary Policy Committee meeting showed that eight members voted for maintaining current size of asset purchases program, while one member vote for an increase by £50 billion. Seven policy makers voted for maintaining the main interest … “GBP/USD Erases Losses After BOE Minutes”
More Dollar Weakness Ahead
Eur/Usd has recovered nicely from the 1.3836 lows, in impulsive formation towards 1.4282 region, which we know should be start of a new trend as Elliott Wave theory suggests. Even a recovery in this week from 1.4014 looks promising as a decline from previous resistance showed corrective qualities. As such, wave (2) may have already … “More Dollar Weakness Ahead”
Dollar Rises on Signs of Agreement Among US Lawmakers
US President Barack Obama accepted the deficit reduction plan of the bipartisan group of senators, bringing hope for resolution of the deadlock in discussion an increase of the debt ceiling. The US dollar rose against the Japanese yen and trimmed its losses versus the euro. The group led by Republican Senator Saxby Chambliss of Georgia and Senator Mark Warner of Virginia proposed plan for an immediate reduction in spending by $500 billion followed by a longer-term cuts and $1 trillion of tax increases. … “Dollar Rises on Signs of Agreement Among US Lawmakers”
BOC Rate Statement Invigorates Loonie
The Canadian dollar jumped today after Canada’s central bank held interest rates and signaled that it can resume its rates increases soon as economy improves. The Bank of Canada maintained its key Overnight Rate at 1 percent and wrote in the statement: To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be withdrawn. … “BOC Rate Statement Invigorates Loonie”