GBPUSD: Vulnerable Despite Recovery GBPUSD: Having reversed higher off the 1.5778 level on Tuesday and following through in early trading today, risk of further bull pressure cannot be ruled out. Though with one caveat, the pair continues to retain its short term weakness and there is a possibility of returning below the 1.5778 level. In … “GBP/USD Vulnerable Despite Recovery, Oil Recovering”
Month: July 2011
Pound Falls vs. Euro on Jobless Claims
The Great Britain pound dropped against the euro today as the government report showed that the unemployment claims increased in June, instead of decreasing as was predicted by analysts. The currency gained versus the dollar. The number of people seeking unemployment benefits rose by 24,500 in June from May, while market forecast change by only 15,100. The change from April to May was revised upwardly from 19,600 to 21,500. The unemployment rate was at 7.7 percent. … “Pound Falls vs. Euro on Jobless Claims”
Yen Declines as Chinese Economy Grows
The Japanese yen erased gains versus the US dollar and fell against the euro today after the Chinese economy grew more than expected in the second quarter of this year. The National Bureau of Statistics reported that China’s gross domestic product grew 9.5 percent in the second quarter of 2011, compared to the median forecast of 9.3 percent. The MSCI Asia Pacific Index of equities gained 0.9 percent. The Standard & Poorâs 500 Index … “Yen Declines as Chinese Economy Grows”
Oanda is Back to the Top Spot, Overall Profitability
In the second quarter of 2011, US forex brokers profitability rates dropped. According to a fresh report generated by Michael Greenberg, Oanda is back to the top spot in profitability rate (although lower than in Q1) and also remains the biggest US broker in terms of clients. It is important to note that a few … “Oanda is Back to the Top Spot, Overall Profitability”
Euro Recovers on US Trade Balance, Threatened By Ireland
The euro rose today against the US dollar after yesterday’s decline as the US trade balance posted bigger deficit than was anticipated and the minutes of the Federal Open Market Committee showed that the US policymakers are divide on their opinion about necessity of the quantitative easing. The euro rose today, following yesterday’s decline, as the deficit of the US trade balance widened from $43.6 billion in April to $50.2 billion in May, while a reading … “Euro Recovers on US Trade Balance, Threatened By Ireland”
Europe Needs a Rate Cut. Now.
The main problem of the troubled euro-zone countries is economic growth. The lack of it. A rate cut now is the initial and immediate step that should be taken on the way to solve the crisis. There are at least 5 advantages for such a move. The ECB may buy bonds. So can China. Such … “Europe Needs a Rate Cut. Now.”
Pound Recovers from Slump on Bad Fundamentals
The Great Britain pound currently attempts to recover from the losses caused by today’s macroeconomic reports. Virtually all data today was unfavorable for the sterling as it signaled that the economic recovery is faltering. The Consumer Price Index fell to 4.2 percent in June, while it was expected to stay at the May level of 4.5 percent. The trade balance deficit widened to £8.5 billion in May from £7.6 billion in April, instead of shrinking … “Pound Recovers from Slump on Bad Fundamentals”
South Korean Won Suffers from Europe’s Troubles
The South Korean won, together with other Asian currencies, fell today as Italy became yet another country of the European Union threatened to be engulfed by the debt crisis. Standard & Poorâs and Moodyâs Investors Service voiced concerns about Italy’s ability to finance its debt. The European Central Bank said, according to the German newspaper Die Welt, said that to help Italy the EU would require to double its bailout … “South Korean Won Suffers from Europe’s Troubles”
Loonie Declines vs. Greenback, Remains Strong vs. Majors
The Canadian dollar weakened versus its US counterpart as the problems in Europe and prospects of slower economic growth in China made the US currency more preferable to the Canadian one. Italy is now yet another country that may require help from its European peers, while Greece still undermines confidence in the future of the Eurozone. In such an unfavorable environment growth-related currencies usually retreat, making safe currencies, like the US dollar … “Loonie Declines vs. Greenback, Remains Strong vs. Majors”
Aussie Heads Down on Europe Woes & China’s Growth
The Australian dollar fell today on concerns about the debt situation in the European Union and on the speculation that China will take additional steps to prevent its economy from overheating. Economists predict the report, released on July 13, will show that China’s gross domestic product grew 9.3 percent in the second quarter of 2011, down from 9.7 percent in the first quarter. The report last week showed that China’s inflation increased … “Aussie Heads Down on Europe Woes & China’s Growth”