The Canadian dollar weakened today as the decline of crude oil prices and the signs of slowdown of Europe’s economy reduced appeal of riskier currencies. The slower-than-expected growth of the German and the Eurozone GDP returned markets to risk-off mode. Contract for delivery of crude oil in September dropped 1 percent to $86.99 per barrel in New York. The Standard & Poorâs 500 Index fell 0.8 percent. The fundamentals in Canada itself also weren’t supportive for the loonie. The decline of the Canadian … “Canada’s Dollar Goes Down with Crude”
Month: August 2011
Aussie Falls as RBA Minutes Don’t Exclude Rates Cut
The Australian dollar fell today after the minutes of the policy monetary meeting weren’t been able to calm worries about possible interest rates cut by the Reserve Bank of Australia. The policy makers were concerned about “the acute uncertainty in global financial markets over the recent period”. The resulting decision was: Having considered all these factors, members judged that it was prudent to leave the setting of monetary policy steady at this … “Aussie Falls as RBA Minutes Don’t Exclude Rates Cut”
Euro Drops as Europe’s Economic Growth Slows
The euro snapped its three-day rally today after the macroeconomic data showed Europe’s economic growth is slowing, intensifying concerns about the impact of the debt crisis on the Eurozone economy. The German GDP, according to the preliminary report, grew just 0.1 percent in the second quarter of 2011, compared to the 1.3 percent growth in the first quarter of this year. The Eurozone GDP expanded 0.2 percent in Q2 2011, following the increase by 0.8 percent in Q1. … “Euro Drops as Europe’s Economic Growth Slows”
Corrections on AUD/USD and S&P Near Completion
Today should be a quite interesting day with traders focusing on the German chancellor Angela Merkel and French president Nicolas Sarkozy meeting in Paris; who will attempt to ease market concerns about Eurozone debt troubles. Why we also think that trading could be interesting is a technical outlook of the S&P Futures count, where a … “Corrections on AUD/USD and S&P Near Completion”
GBP/USD Risks Higher, USD/CHF Hammer and Oversold Condition
GBPUSD: Risk Higher Above Rising Trendline GBPUSD: Our outlook on GBP continues to point higher as long as it holds above its long term rising trendline dating back to May’2011. Although it weakened and closed lower for the week, we see the risk of returning above the 1.6472/1.6510 levels a possibility. In such a case, … “GBP/USD Risks Higher, USD/CHF Hammer and Oversold Condition”
Good Week for Dollar Even After FOMC Statement
This week wasn’t bad for the US currency even after the statement of the Federal Market Open Committee signaled that the nation’s central bank will debase the dollar for prolonged time. The FOMC stated that it’s going to maintain interest rates exceptionally low till at least mid-2013, making the dollar to plummet with this statement. Yet the greenback recovered surprisingly fast after the initial slump. Since this announcement markets have … “Good Week for Dollar Even After FOMC Statement”
Franc Continues Run Down on Prospect of Euro-Peg
The Swiss franc extended its losses as traders are worried that the Swiss government is ready to go for extreme measures to tame the excessive appreciation of the currency. Swiss National Bank Vice President Thomas Jordan signaled that peg of the Swiss currency to the euro isn’t impossible. The franc fell heavily after the news, posting the biggest decline against the euro since the introduction of the shared European currency. Perhaps Switzerland’s central bank has … “Franc Continues Run Down on Prospect of Euro-Peg”
No Short Selling Ban in Forex
The ban imposed by some European regulators on selling of shorts is a great opportunity to remind everybody that in forex trading, no such ban is possible. This is one of the great things in currency trading over stocks. Most investors in stocks don’t use shorts, but rather buy them, hoping they will go up. … “No Short Selling Ban in Forex”
Korea’s Won Retreats After Rally
The South Korean won rose earlier this day, bolstered by yesterday’s report about the US jobless claims, but later retreated on the inflation threat. Unemployment claims in the US declined from 402,000 to 395,000 last week. The median forecast was 401,000. Finance Minister Bahk Jae Wan said today that high inflation is still a threat as adverse weather curbed food production in South Korea, while the low US … “Korea’s Won Retreats After Rally”
NZ Dollar Heads for Second Weekly Drop
The US dollar fell today, heading for a second weekly decline, as the problems of the US and Europe makes traders less willing to invest in currencies perceived to be riskier. The currency of the South Pacific nations is linked to economic growth and thus reacts negatively to the prevalent pessimistic mood on markets. Such mood intensifies as the threat of the debt crisis spreading to Italy and Spain increases. The economic situation in the US isn’t much better and the report about consumer sentiment … “NZ Dollar Heads for Second Weekly Drop”