UK Chancellor of the Exchequer George Osborne rejected demands of the opposition to reconsider the spending cuts that are biggest since World War II. The Great Britain pound reacted positively to the news. Opposition to the spending cuts is strengthening as riots and looting in London intensifies and spreads to other cities. Yet Britain’s government remains firm in their intention to maintain the record cuts. Osborne explained that the credibility of the UK austerity measures helped in attracting … “Osborne Refuses Review Spending Cuts, Boosting Pound”
Month: August 2011
Franc Plunges Heavily on Prospects of Euro-Peg
The Swiss franc slumped today against all major currencies as Swiss National Bank Vice President Thomas Jordan suggested that a short-term peg of the nation’s currency to the euro could be legal. The SNB was attempting to weaken the Swiss currency for several years. So far such attempts were futile. There is a difference this time, though, as a peg wouldn’t have just one-time effect as the previous interventions, but would … “Franc Plunges Heavily on Prospects of Euro-Peg”
FXCM Announces Dividend, Reports Q2 Financials and July Metrics
US forex broker FXCM declared a quarterly dividend of $0.06 per share of Class A common stock, alongside reporting its financial operations for Q2 and July’s monthly metrics. FXCM’s revenue passed the $100 million mark and reached $103.4 million in Q2. Client equity has risen to $839.0 million — up 97% from a year ago and up … “FXCM Announces Dividend, Reports Q2 Financials and July Metrics”
South Korea Holds Interest Rates, Won Goes Lower
The South Korean won declined today as the nation’s central bank kept the main interest rate unchanged, most likely influenced by threat of the European problems and the downgrade of the US credit rating for the global economy. The Bank of Korea held its seven-day repurchase rate at 3.25 percent. Such move wasn’t unexpected by markets. According to analysts, declining oil prices and a weak currency can help the economy of the Asian nation. USD/KRW went higher from … “South Korea Holds Interest Rates, Won Goes Lower”
Spanish Bond Yields Flirt With 9 Month Low
Trichet’s extensive bond buying plan of Italian and Spanish bonds is doing wonders. Yields on 10 year Spanish government bonds fell to 4.98% and they continue sliding. If they close at these low levels, it will be the lowest close since November 2010, just before the Irish crisis erupted. Since then, Spanish yields were above … “Spanish Bond Yields Flirt With 9 Month Low”
Australia’s Dollar Rallies Despite Rising Unemployment
The Australian dollar jumped today as gains of US stocks and advance of commodities overshadowed the unfavorable report about employment in Australia The Standard & Poorâs 500 September futures advanced 1.7 percent, following yesterdayâs decline by 4.1 percent. The Thomson Reuters/Jefferies CRB Index of commodities gained 1.4 percent yesterday. The positive new from outside of Australia overshadowed the bad fundamentals in the country itself. The unemployment rate increased from 4.9 percent in June … “Australia’s Dollar Rallies Despite Rising Unemployment”
Canadian Dollar Receives Hit from US
Canada’s dollar plunged today as demand for the nation’s assets deteriorated because of pessimistic outlook for the economy of the biggest nation’s trading partner â the US. The depressed mood caused fall of equities and decline of commodities. The MSCI World Index of stocks slumped 1.9 percent, while the Standard & Poorâs 500 Index fell as much as 2.1 percent. There are positive sing, though, that may precede a change of the trend. The S&P/TSX Composite Index … “Canadian Dollar Receives Hit from US”
Yen Advances, Japan Worried â New Intervention is Coming?
The Japanese yen advanced today, heading to the highs against the dollar last seen during the post-World War II period, and made the Japanese government even more nervous about the currency’s strength. Investors seek safer assets after North American and European stocks fell. The Standard & Poorâs 500 Index slid 2.6 percent today and the Stoxx Europe 600 dropped 0.9 percent. The Swiss franc could be the place for investors … “Yen Advances, Japan Worried â New Intervention is Coming?”
AUD/USD: Trading the Australian jobs Aug 2011
Australia releases its employment figures at turbulent times for its currency. This all-important figure always rocks the markets. The low expectations can set the stage for a surprise. Here are the details, and 5 possible outcomes for AUD/USD. Published on Thursday at 1:30 GMT. Indicator Background After many months of strong job gains and surprising … “AUD/USD: Trading the Australian jobs Aug 2011”
Consumer Sentiment Curbs Appeal of Aussie
The Australian dollar resumed its movement down after the yesterday’s gains as consumer sentiment declined this month, reducing attractiveness of the nation’s currency. The Westpac-Melbourne Institute Consumer Sentiment index fell 3.5 percent in August from July. This declined followed the drop by 8.3 percent in July. The Aussie (the nickname of the Australian currency) also weakened as the pledge of the Federal Reserve to keep interest rates stable hasn’t reduced pessimism among Forex traders. … “Consumer Sentiment Curbs Appeal of Aussie”