The Australian dollar advanced today against the US dollar and the euro as the Asian stocks climbed, but the currency is still heading to a weekly decline as concerns about the European economy sapped appeal of higher-yielding currencies. The MSCI Asia Pacific Index of shares climbed 2.1 percent, while the MSCI World Index jumped 2.1 percent yesterday. Investors bet that Reserve Bank of Australia Governor Glenn Stevens will cut the interest rates … “Aussie Rises on Asian Stocks, Heads to Weekly Loss”
Month: September 2011
Rand Falls as Investors Shun South African Bonds
The South African rand dropped today as the optimism about the European banking system quickly waned, spurring investors to draw money out of riskier assets. The global funds sold $1.4 billion of South African bonds on September 13 and 14. That’s the biggest two-day selling since October 2008. Economists are concerned that the selling can lead to higher current account deficit in South Africa as the current account was finance for the most … “Rand Falls as Investors Shun South African Bonds”
Mixed Fundamentals Leave Traders Uncertain, USD Fluctuates
The US dollar fluctuated as the mixed fundamental data left Forex traders uncertain will the US economy face recovery or recession. The currency was falling yesterday, but at the start of today’s trading session the dollar rebounded. There was plenty of good news. The consumer price index rose 0.4 percent in August, compared with the median forecast of 0.2 percent. The current account deficit decreased to $118.0 billion (preliminary) in the second quarter of 2011, … “Mixed Fundamentals Leave Traders Uncertain, USD Fluctuates”
SNB Maintains Rates at Zero, Franc Strengthens
The Swiss franc rose today even after the Swiss National Bank left the benchmark interest rate at zero at pledged to maintain the peg of the nation’s currency to the euro. The central bank wrote in the monetary policy assessment: The Swiss National Bank will enforce the minimum exchange rate of CHF 1.20 per euro set on 6 September with the utmost determination. It is prepared to buy foreign currency in unlimited quantities. It continues to aim … “SNB Maintains Rates at Zero, Franc Strengthens”
Europe Helps Oil & Russian Ruble
The Russian ruble climbed today, rebounding from the lowest level in eight months against the US dollar, as crude oil gained and the European Central Bank announced its plans to boost liquidity, bolstering risk appetite. Crude oil jumped 1.4 percent to $90.02 per barrel in New York, rebounding for the previous drop to $88.01 per barrel. Crude is the major source of Russia’s export revenue. Futures on Brent crude oil rose … “Europe Helps Oil & Russian Ruble”
Rand Rebounds on ECB Efforts
The South African rand strengthened today as the European Central Bank announced it’s planning to lend dollar to the European bank in an effort to support the European banking system and to boost liquidity. The ECB announced it’s going to perform liquidity operations in tandem with the Federal Reserve, the Bank of England, the Japan of Bank and the Swiss National Bank. The effort of the central banks reduced concerns about the Eurozone banking system. Analysts think that the optimism may be … “Rand Rebounds on ECB Efforts”
Is The Dollar Liquidity Move a Preparation for the Greek
The dramatic announcement by 5 major central banks about providing dollar liquidity for European banks could precede a bigger announcement about an official Greek default. The liquidity move, similar to the one made after Lehman, could help make the default more orderly, and prevent a Lehman like turmoil. Here are 3 reasons why this move … “Is The Dollar Liquidity Move a Preparation for the Greek”
USD/JPY: Trading the Michigan Consumer Sentiment September 2011
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and can help strengthen the US dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Friday at 14:00 GMT. Indicator … “USD/JPY: Trading the Michigan Consumer Sentiment September 2011”
FXCM to Buy Foreland Forex – A Japanese Forex Broker
The publicly traded US forex broker FXCM continues to expand. Foreland has over 18,500 accounts in Japan, not far from 25,700 that FXCM has in this country. So, this move is a big boost to its business, making it one of the biggest brokers in Japan. FXCM More details in the official press release: NEW … “FXCM to Buy Foreland Forex – A Japanese Forex Broker”
Canadian Dollar Within Cent of Parity with Greenback
The Canadian dollar fell today, trading within one cent of parity with the US dollar, as copper and crude oil prices declined on the signs the global economic recovery is faltering. Crude oil, the key Canadian export fell to $88.54 per barrel in New York, while copper dropped 1.6 percent to $8,630 per metric ton. Some other raw materials, including lead, tin and zinc, also declined. The retail sales … “Canadian Dollar Within Cent of Parity with Greenback”