The Australian dollar rallied today, ending the three-day decline against the US dollar, after the report showed that the Australian economy grew more than expected in the second quarter. The Australian Bureau of Statistics reported today that Australia’s gross domestic product expanded 1.2 percent from March to June, compared to the median forecast of 1.0 percent. The advanced followed the drop by 0.9 percent in the previous three months. Analysts predict that tomorrow’s … “Aussie Gains as Australian Economy Grows”
Month: September 2011
Hint of a Rate Cut? ECB Preview
No change is expected in the upcoming rate decision in the euro-zone. Trichet is likely to soften his stance on inflation. But how soft will he be? ECB Preview. In the recent rate decision, Jean-Claude Trichet remained upbeat on inflation risks. He used the code words “very closely monitoring”, which mean that a rate hike … “Hint of a Rate Cut? ECB Preview”
Pound Falls as Retail Sales Decline. More Stimulus Ahead?
The Great Britain pound fell today, dropping to the lowest level in almost two months against the US dollar, after the report showed that UK retail sales declined in August, spurring speculation that Britain’s central bank will be required to stimulate the nation’s economy. British Retail Consortium reported today that UK retail sales values were 0.6 percent lower on a like-for-like basis from August 2010. The previous … “Pound Falls as Retail Sales Decline. More Stimulus Ahead?”
CAD Near Parity with USD
The Canadian dollar traded within a cent from parity with the US currency as decline of stocks and signs of global economic slowdown spurred speculation that the nation’s central bank will decrease its interest rates. The Bank of Canada will announce its decision about borrowing costs tomorrow. Investors’ viewpoints are split about evenly among those who believe that the bank will keep the key Overnight Rate unchanged … “CAD Near Parity with USD”
Europe Weakens Asian Currencies, Malaysian Ringgit Down
The Malaysian ringgit fell today, together with other Asian currencies, as concerns about Europe’s problems intensified after Germany’s ruling party lost vote, reducing prospects for Asian exports. The MSCI Asia-Pacific Index of shares dropped as much 1.4 percent, falling 5.1 percent in the last three sessions. The Bloomberg-JPMorgan Asia Dollar Index, tracking Asia’s 10 most-traded currencies excluding the yen, slid to 119.21, the lowest level in more than … “Europe Weakens Asian Currencies, Malaysian Ringgit Down”
USD/CHF: A daily close above 0.85 calls for 0.90
The Swiss franc moved lower across the board significantly this morning after Swiss Central Bank intervention. Always when you see move like this you need to make a step back and look at the larger time frames, to see where the price stands and where is it headed. Well, we are looking at the 4h … “USD/CHF: A daily close above 0.85 calls for 0.90”
AUD/USD: Trading the Australian GDP Sep 2011
Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. It is considered by analysts as one the most important indicators of economic activity. Thus, publication of Australian GDP may have a significant impact on AUD/USD. Here are all the details, and 5 possible outcomes for AUD/USD. Published on Wednesday at 1:30 … “AUD/USD: Trading the Australian GDP Sep 2011”
Record Drop of Franc After SNB Pegs Currency to Euro
The franc plunged today, posting the biggest decline against the euro in all times, after the Swiss National Bank decided to set limit of franc’s appreciation versus the euro. Switzerland’s central bank decided to act as continuous appreciation of the Swiss currency “poses an acute threat to the Swiss economy and carries the risk of a deflationary development”. As a result, the SNB announced today: The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained weakening of the Swiss franc. … “Record Drop of Franc After SNB Pegs Currency to Euro”
EUR/USD: Trading the US ISM Non-Manufacturing PMI
The Non-Manufacturing PMI (purchasing managers’ index) is an important leading indicator which focuses on the non-manufacturing sector of the economy. As the PMI comes out at the beginning of each month, traders look closely at the index for any hint of a market trend. Here are all the details and 5 possible outcomes for EUR/USD. … “EUR/USD: Trading the US ISM Non-Manufacturing PMI”
Decline of UK Service Industries Hurts Pound
The Great Britain pound tumbled today as the Services Purchasing Managers’ Index slumped in August, confirming a bad state of Britain’s economy and reducing attractiveness of the UK currency as a haven from problems in continental Europe. The Services PMI dropped from 55.4 in July to 51.1 in August, only a little above the level of 50.0 that indicates no change. The report said: Respondents primarily blaming a weaker underlying trend in new business and general economic uncertainty. … “Decline of UK Service Industries Hurts Pound”