Asian markets were mostly higher as stocks followed a positive close on Wall Street. European markets also gaped higher, and now the question is, if this rally is only temporary move or start of something bigger? Well, on S&P futures, move from the lows is still only in three waves, so any larger bullish reversal … “Euro Recovers After A Bounce on Stock and Commodity”
Month: August 2011
SNB Moves In, Franc Moves Back
The Swiss franc retreated today from the yesterday’s records against the dollar and the euro as the Swiss National Bank expanded measures aimed to tame the excessive appreciation of the currency. The SNB repeated that a strong currency is a “threat” to the nation’s economy. As a result, the bank decided to increase pressure on the franc: In the light of these developments, the Swiss National Bank (SNB) is taking additional measures against the strength of the Swiss franc. It will again significantly increase … “SNB Moves In, Franc Moves Back”
Pound Drops with Higher Trade Deficit
The Great Britain pound dropped after macroeconomic data provided today some unpleasant surprises, including the unexpected growth of trade balance deficit and decline of manufacturing. The UK trade balance deficit widened to £8.9 billion in June from £8.5 billion in May. Traders hoped for decrease of the deficit to £8.2 billion. Manufacturing production declined with the annual rate of 0.4 percent in June. The contraction followed the advance by 1.8 percent in the month before. Market … “Pound Drops with Higher Trade Deficit”
Fed Plans Keep Zero Rates till 2013, Dollar Hurt
The US dollar slumped against some other currencies, including the euro, the yen and the franc, after the Federal Reserve kept its key Federal Fund rate near zero and signaled that it may keep interest rates exceptionally low till mid-2013. The Federal Open Market Committee said in its statement that “economic growth so far this year has been considerably slower than the Committee had expected”. … “Fed Plans Keep Zero Rates till 2013, Dollar Hurt”
Australian Dollar Attempts Stop Decline, Fails
The Australian dollar attempted to pare its losses today after Asian stocks rebounded, but this attempt wasn’t successful, meaning that the currency heads for a ninth straight session of losses. The MSCI Asia Pacific Index posted a decline of 1.7 percent, rebounding from the drop by 5.5 percent. The Australian currency also rebounded from its intraday decline by 2.5 percent against the US dollar, but currently resumed movement to the downside. … “Australian Dollar Attempts Stop Decline, Fails”
Impact of BoJ Intervention on Yen Wanes
The Japanese yen jumped against all other most-traded currencies today as traders fled to safety of the yen, fearing the financial problems of the US and Europe. The Japanese policy makers signaled that they may take steps to curb gains of the currency. In fact, the Bank of Japan already intervened on August 4, but the impact of the move almost waned at present. This situation isn’t unlike the one in Switzerland, where the central bank also fights with … “Impact of BoJ Intervention on Yen Wanes”
5 Reasons Why QE3 Has Slim Chances – FOMC Preview
The Federal Reserve will likely leave interest rates unchanged once again. The focus will be on the statement, in any change of tone found there. Will the Fed hint about QE3? Here are 5 reasons why this is unlikely. FOMC Preview with 3 scenarios for the dollar. Ben Bernanke and his colleagues are discussing monetary … “5 Reasons Why QE3 Has Slim Chances – FOMC Preview”
Eighth Session of Suffering for Aussie
The downgrade of the US credit rating on August 5 hurt commodity currencies and the Australian dollar was among the ones hit hardest by the rating agency’s decision. The Australian currency extended its drop today. Risk aversion sentiment was already in place before the cut of the US rating and it has strengthened following the S&P move, having its negative impact on markets. The Standard & Poorâs 500 Index slumped as much as 3.8 percent. … “Eighth Session of Suffering for Aussie”
CHF at New Record vs. USD, Gains vs. Other Currencies
The Swiss franc rallied against all most-traded currencies as downgrade of the US credit rating and concerns about the future of the European debt made investors unwilling move from the safety of the franc to riskier assets. TSR television reported that the Swiss government is going to have extraordinary meeting today in order to discuss the strength of the nation’s currency. It’s clear that the Swiss policy makers aren’t happy with the gains of the franc and are going … “CHF at New Record vs. USD, Gains vs. Other Currencies”
QE Landing in Europe – Is the Euro Headed South?
At last, the intervention of the ECB in the bond markets is serious. So serious, that doubts arise about the ability of the ECB to sterilize it, or to transfer it to the EFSF. This might be morphing in a Quantitative Easing program that Trichet vehemently rejected but might seriously help the old continent, at … “QE Landing in Europe – Is the Euro Headed South?”