The uncertain economic situation on market creates great demand for safer currencies. Governments, worried by resulting appreciation, attempt to intervene to rein excessive appreciation of such currencies. Today, the Swiss franc was one of the currencies that felt pressure. The franc is still feeling support as the problems of economic across the world drive investors to safety of the Swissie. On the other hand, prospects of euro-peg make them reluctant to rely on the currency too much. As a result, the franc … “Franc’s Rally Fails on Euro-Peg Speculation”
Month: August 2011
NZ Dollar Climbs on Expectations of QE3 in US
The New Zealand dollar jumped today on the speculation the US Federal Reserve will perform additional actions to support the faltering nation’s economy. Federal Reserve Chairman Ben S. Bernanke will speak on August 26 in Jackson Hole, Wyoming. It’s there last year he has told about the second round of quantitative easing. Some traders speculate this year we would see a third round of stimulus. Kengo Suzuki, … “NZ Dollar Climbs on Expectations of QE3 in US”
Rand Weakens on Prospect of Interest Rates Cut
The South African rand declined today on the speculation the central bank will decrease interest rates to support the nation’s economy that feel the negative impact of the global economic slowdown. South African Reserve Bank Governor Gill Marcus said the central bank will âactively monitorâ global developments and is ready to take steps to ensure stability and liquidity in financial markets. Forecasters predict that the inflation report on August 24 will show … “Rand Weakens on Prospect of Interest Rates Cut”
Japan Speaks About Intervention, Yen Weakens
The yen fluctuated against the US dollar and fell against the euro today on the speculation that Japan will intervene to rein the excessive appreciation of the currency. Japanese Finance Minister Yoshihiko Noda said heâs ready to take appropriate measures after the yen jumped to the record 75.93 against the dollar on August 19. Noda said today that he’s “more concerned about the worsening of the yenâs one-sided movementsâ and “the government will take âbold actions … “Japan Speaks About Intervention, Yen Weakens”
Oanda Japan Launched
US forex broker Oanda launches its operation in Japan, aimed at both institutional and retail traders. This follows the acquisition of a majority stake in Japanese broker MyGaika made last year. Oanda Japan, which is regulated by the local FSA, is diving into a big yet challenging market. Leverage is limited to 25:1 in Japan, … “Oanda Japan Launched”
Swiss Franc Weakens This Week, Reverses Downtrend by Weekend
The Swiss franc was down for the second week as prospects of peg of the currency to the euro significantly reduced appeal of the franc a safe asset. At the beginning of the week the franc continued its run to the downside that it has started in the previous week. For some time it looked like we would see another week of significant losses of the Swiss currency. The Swissie reversed its trend after the Swiss National Bank announced on August 17 yet … “Swiss Franc Weakens This Week, Reverses Downtrend by Weekend”
Carney Expects Economic Growth, CAD Fluctuates
The Canadian dollar was closed flat against the US dollar and the Japanese yen as contradicting signals haven’t allowed the currency to establish a clear trend. Mark Carney, Governor of the Bank of Canada, outlined some downside risks for the economy of Canada in his speech yesterday: In recent weeks, several downside risks to the Bankâs July Monetary Policy Report (MPR) projection have been realised. The European sovereign crisis has intensified, the U.S. credit rating … “Carney Expects Economic Growth, CAD Fluctuates”
Oil Doesn’t Stop Falling, Drags Ruble Along
Today the Russian ruble continued to show a downward trend as crude oil continued to decline, dropping below $81 per barrel on the speculation demand for fuel will wane as the global growth is stalling. Currently the Russian currency erased its losses, but it’s unclear how long could it maintain gains. Oil, the main export revenue earner for Russia, slumped 2.4 percent to $80.83 before trading at $80.81. Crude has … “Oil Doesn’t Stop Falling, Drags Ruble Along”
Korean Won Falls on Anticipation of Crisis
The South Korean won weakened today as signs of faltering global economic growth made investors prepare for a new crisis, making riskier assets less attractive. Financial Supervisory Service Governor Kwon Hyouk Se recommended to chief executives of insurance companies to be cautious in paying dividends and to boost capital as a preparation for a potential crisis. Morgan Stanley cut its 2011 economic growth forecast for South Korea from 4.5 percent to 3.8 … “Korean Won Falls on Anticipation of Crisis”
Canadian Dollar Feels Pressure from Falling Stocks & Commodities
Outlook for the future of the global economy again worsened among investors, making them less interested in higher-yielding currencies. The Canadian dollar was one of the victims of such pessimistic sentiment. September futures for delivery of crude oil (the major export commodity of Canada) slumped as much as 7.3 percent to $81.15 a barrel in New York. The Thomson Reuters/Jefferies CRB index dropped 2.3 percent. The S&P/TSX Composite index subtracted 3.1 percent. The Standard & Poorâs … “Canadian Dollar Feels Pressure from Falling Stocks & Commodities”