The Chinese yuan climbed today after China’s central bank lifted the reference rate, following the downgraded of the US credit rating, signaling that the policy makers aren’t bothered by the currency’s gains. The Peopleâs Bank of China put its reference rate 0.23 percent higher at 6.4305 per dollar, allowing the yuan to trade up to 0.5 percent on either side of the official rate. The current level of the rate is the highest since November. China … “PBoC Allows Yuan Appreciation”
Month: August 2011
Week Begins with Fall of EUR/USD & USD/JPY
The US dollar extended today its decline versus the Japanese yen that started last Friday after Standard & Poor’s cut the US credit rating. The euro slipped against the dollar. S&P downgraded the US rating to AA+ on August 5 and left the outlook on “negative”, signaling that the rating can be further downgraded to AA. Two other major rating agancies, Moodyâs Investors Service and Fitch Ratings, maintained their … “Week Begins with Fall of EUR/USD & USD/JPY”
Intervention: Way to Weaker Franc or Bluff of SNB?
The Swiss franc is considered one of the most attractive currencies (if not the most attractive) nowadays as the strength of the franc makes it preferable as a safe haven. With all the financial turmoil in Europe and America the safety of the currency is in high demand among investors. But the Swiss National Bank announced last week that itâs going to take measures for taming the excessive appreciation of the Swiss currency. How this step will affect … “Intervention: Way to Weaker Franc or Bluff of SNB?”
Forex Scams: Things Can Get Really Ugly
Valeria Bednarik, Chief Analyst at FXstreet.com has been a victim of identity stealing. An unknown individual opened up an email account that resembles her name, and is using it to sell forex signals. That’s ugly. Not only is this person benefiting off somebody Bednarik’s reputation, but he is also damaging it: Bednarik doesn’t sell signals. So if you … “Forex Scams: Things Can Get Really Ugly”
Swiss Franc and Gold Set to Rally After S&P Downgraded
Standard and Poor’s downgraded the U.S.’s sovereign credit rating from AAA to AA+ on Friday after the market close. There are a lot of speculations how the markets will react, which should be US dollar negative. Now, the question is where the money will go!? We believe it will be nothing different compared to what … “Swiss Franc and Gold Set to Rally After S&P Downgraded”
Future of the US Dollar with AA+ Rating
Following the Friday’s US credit rating downgrade by Standard & Poor’s the Forex traders are wondering how will the currencies react tomorrow and where will the dollar head during the next few weeks. Standard & Poor’s rating agency reduced the long-term sovereign credit rating of the United States from “AAA” to “AA+” (which is somewhere between very strong and extremely strong capacity to meet the financial commitments) on August 5. … “Future of the US Dollar with AA+ Rating”
Spain’s Elections Can Be Further Pushed Forward to October
While the focus of the European debt crisis leans towards Italy, fresh news come from Spain. According to reports, Spain’s prime minister José Luis Rodríguez Zapatero might push forward the Spanish general elections to October 23rd or October 30th. The markets are moving much faster, and mid October is a long 10 weeks away. The … “Spain’s Elections Can Be Further Pushed Forward to October”
How Will Currencies React to the Credit Downgrade?
The question above is tough. The historic downgrade of the US by S&P is set to aid some currencies against the dollar, while others will suffer. One thing is certain: the week will open with a storm. Here are estimates on 7 currency pairs, assuming that policymakers around the world will not act in extraordinary … “How Will Currencies React to the Credit Downgrade?”
EUR/CHF Eyes Further Weakness, USD/CHF Maintains Bearish Momentum
EURCHF: Breaks Major Support, Eyes Further Weakness EURCHF – With the cross breaking and holding below its major support at 1.0000 the past week, risk of further weakness is now expected in the coming week. EURCHF has been weakening since collapsing off the 1.6826 level in 2007 and with bearish momentum remaining in progress, further … “EUR/CHF Eyes Further Weakness, USD/CHF Maintains Bearish Momentum”
AUD Down on Economic Outlook Revision
Despite today’s recovery against the US dollar, the Australian dollar continued its decline against the other currencies, following a release of the economic outlook by the country’s central bank. The currency rose for the first day after six days of decline against the US dollar. It fell for the seventh day against the Japanese yen today and for the fourth day versus the euro. It was also the first bearish day against its neighbor currency — New … “AUD Down on Economic Outlook Revision”