The Australian dollar fell today on the speculation the revised method of the inflation calculation will cause the central bank to refrain from raising the interest rates. The Australian Bureau of Statistics changed its method of calculating the inflation of the consumer prices. The new method may show the consumer prices grew last quarter less than was previously estimated. Joaquin Vespignani, economist at Barclays, predicted that the Reserve Bank of Australia will have to reduce its … “Australian Dollar Drops on Interest Rates Outlook”
Month: September 2011
EUR/USD: Trading the Philadelphia Index September 14 2011
The Philadelphia Fed Index is one of three key manufacturing reports coming out this week, as we head into Q4. The manufacturing sector is an important component of the economy and the index provides a useful reading for determining whether the economy is in a growth or contraction phase. An actual reading which exceeds the … “EUR/USD: Trading the Philadelphia Index September 14 2011”
Austrian Committee Says Delays Vote on Extended EFSF
A parliament committee in Austria refuses to approve new capabilities to the European bailout fund – the EFSF. This move will likely delay the approval from September till October. The leaders of the European Union agreed to add two new capabilities to the EFSF: an ability to buy bonds in the secondary market, and an option to … “Austrian Committee Says Delays Vote on Extended EFSF”
Two European Banks Still Need the ECB for US Dollars
New data published by the ECB shows that two banks in the euro zone had to approach the European Central Bank for funding in dollars. The total sum is 575 million. This isn’t huge, but it shows that the problem continues. Jean-Pierre Chevallier reports about this phenomenon and states that this means that two European … “Two European Banks Still Need the ECB for US Dollars”
Indonesia Intervenes to Support Rupiah, India & South Korea Follow
The Indonesian central bank intervened, selling dollars, to support the Indonesian rupiah that was weakened by the pessimistic outlook for the currencies of the emerging markets. Hartadi Sarwono, Deputy Governor of the Bank Indonesia, said in the interview the central bank “intervened in the rupiah and bond markets”. According to rumors, the Reserve Bank of India also sold dollars after the rupee fell below 48 per dollar for the first time since 2009. The Asian Development Bank cut today … “Indonesia Intervenes to Support Rupiah, India & South Korea Follow”
Yen Gains as China Imposes Conditions on Help to Europe
The Japanese yen advanced today against most major currencies as China set conditions for their aid to the indebted nations of the European Union. Chinaâs Premier Minister Wen Jiabao said developed nations should cut their budget deficits and concentrate on job creation, instead of hoping China can bailout the whole world economy. Wen stated: Countries must first put their own houses in order. He added the Asian nation … “Yen Gains as China Imposes Conditions on Help to Europe”
Stocks & Crude Oil Add Strength to Loonie
The Canadian dollar rose today as stocks advanced and crude oil gained, reducing risk aversion on Forex market and improving prospects for growth-related currencies. The pessimistic outlook on markets receded somewhat. Most economists believe that it’s not for long and very soon riskier assets will again feel the weight of the pessimism, but for now traders again inclined to risk. Some analysts think that the current strength of the loonie (the nickname of the Canadian currency) … “Stocks & Crude Oil Add Strength to Loonie”
USD Up vs. GBP, Down vs. JPY, Fluctuates vs. EUR
The macroeconomic data from the US was rather mixed today, making the US dollar fluctuate against the euro. The US currency gained versus the Great Britain pound, but fell versus the Japanese yen. The report about the import and export prices in the US was positive. Export prices increased 0.5 percent in August, following the 0.4 percent drop in July. Import prices decreased 0.4 percent last month (led by the 1.8 percent … “USD Up vs. GBP, Down vs. JPY, Fluctuates vs. EUR”
NZD Follows Food Prices in Decline
The New Zealand dollar fluctuated against the US dollar and dropped against the Japanese yen after the report showed that food prices in New Zealand fell last month. The Food Price Index declined 1.3 percent in August. The decline followed the 2.0 percent increase in the previous month. Year-on-year, the prices rose 6.6 percent. Currently, the kiwi, as the New Zealand currency is often nicknamed, strives to regain its strength. NZD/USD traded … “NZD Follows Food Prices in Decline”
Optimism About Europe Evaporates, Euro Weakens
The optimism, caused by the speculation China is going to buy Italy’s debt, quickly wane and the euro fell after Italy auctioned its debt. The optimism, caused by the speculation China is planning to buy the Italian debt, was defeated by the skepticism that China alone won’t be able to prevent the spreading of the debt crisis to the European nation. The skepticism strengthened as the borrowing costs increased. Italy sold â¬3.9 billion of the new benchmark five-year bonds … “Optimism About Europe Evaporates, Euro Weakens”