Finally, a Greek default is on the cards and has a tentative timing: the first week of November. The G-20 and IMF discussions in Washington have reportedly resulted in enough pressure on Europe to get its act together. 6 countries are in the heart of the crisis at its current situation, together with one institution … “Greek Default: 6 Critical Weeks for 6 Countries”
Month: September 2011
Bad Week for Global Economy, Good Week for Yen
This week was marked by risk aversion sentiment that hit markets hard and sent stocks, commodities and higher-yielding currencies tumbling down. The Japanese yen thrived in such an environment. There were plenty of negative news that hurt the outlook of Forex traders and caused them to seek safety of the Japanese currency. The concerns about Greece, the downgrade of Italy’s credit rating by Standard and Poor’s, the dovish statement of the Federal Reserve were just some … “Bad Week for Global Economy, Good Week for Yen”
Australian Currency Rebounds, Down Over Week
The Australian dollar pared its two-day decline as the leaders of the Group of Twenty nations pledged to resolve the problems of the global economy and prevent another worldwide financial crisis. The G-20 meeting had positive effect on commodity currencies, including the Aussie (the nickname of the Australian dollar). The confirmation of Australia’s AAA credit rating and the stable outlook issued by Standard and Poor’s also bolstered the currency. The future of the Australian dollar looks dim, despite the optimism brought by the G-20 meeting. … “Australian Currency Rebounds, Down Over Week”
CAD Slows Decline, Posts Record Weekly Drop vs. USD
The decline of the Canadian dollar slowed today, but the currency still fell most in almost three year over this week, posting the biggest weekly drop since the global recession. Futures for delivery of crude oil, the biggest export of Canada, in November slipped 0.8 percent to $79.85 per barrel in New York, following the previous drop by 3.7 percent. The Standard & Poorâs 500 Index rose 0.6 percent after earlier it … “CAD Slows Decline, Posts Record Weekly Drop vs. USD”
GBP Advances as G-20 Meeting Improves Outlook for Global Economy
Another currency that benefited from the meeting of the Group of Twenty nations chiefs was the Great Britain pound. The sterling reached the record low versus the yen yesterday. The G-20 leaders said their nations are “committed to a strong and coordinated international response to address the renewed challenges facing the global economy”. The Stoxx Europe 600 Index rose 0.6 percent, while the FTSE 100 Index climbed 0.5 percent. The number of the new mortgages … “GBP Advances as G-20 Meeting Improves Outlook for Global Economy”
Euro Rebounds as Stocks Rises on Hopes for G-20 Meeting
The euro rebounded from yesterday’s drop to the eight-month low after global stocks advanced as the leaders of the Group of Twenty nations meet in Washington. Investors hope the G-20 policy makers will discuss the global economic imbalances and find a way to help the Eurozone in dealing with its debt crisis. The Standard & Poorâs 500 Index rebounded 0.6 percent, following the drop by 0.7 percent. The index is still down 6.6 percent over … “Euro Rebounds as Stocks Rises on Hopes for G-20 Meeting”
USD/CHF Open For Further Gains, Gold Set to Test Key
USDCHF: Strengthens Through The 0.9013 Level, Risk Opens For Further Gains. USDCHF: The pair broke and held above the 0.9013 level, its April 19’2011 high on Thursday, opening the door for further bullish offensive. Its present bullish momentum is coming on the heels of a violation of its key resistance at the 0.8929 level, its … “USD/CHF Open For Further Gains, Gold Set to Test Key”
US Dollar Rises Further as Traders Shun Risk
The US dollar continued its upward movement today as yesterday’s statement of the Federal Reserve continues to force Forex traders to shun risk and to seek safety. The yen outperformed the dollar as a safe currency. The yesterday’s announcement of the Fed put the Forex market in the risk aversion mode and it’s still in place, bolstered by the signs of a slower economic growth in China. The greenback benefits from this situation as a refuge currency. The Dollar Index, tracking the US currency versus … “US Dollar Rises Further as Traders Shun Risk”
CAD Falls Below Parity with USD After Fed Statement
Yesterday’s monetary policy statement of the Federal Reserve had a very negative effect on the Canadian dollar. The growth-linked currency posted the biggest decline since May 2010 today, dropping below parity with the US dollar for the first time since January 2011. The Fed announced yesterday that it’s replacing its short-term debt with longer-maturity securities. The US central bank mentioned about “significant downside risks” to the US economic growth. … “CAD Falls Below Parity with USD After Fed Statement”
NZ Dollar Drops as Economic Growth Stalls
The New Zealand dollar slumped today after the report showed that the nation’s economic growth almost stalled in the second quarter of this year. New Zealand’s gross domestic product rose 0.1 percent in the second quarter of 2011. That’s compared to the median forecast of 0.5 percent and the 0.9 percent growth in the first quarter. Reserve Bank of New Zealand Governor Alan Bollard signaled the central bank doesn’t feel need to raise the interest … “NZ Dollar Drops as Economic Growth Stalls”