The Australian dollar fell today as Forex market participants anticipate an interest rate cut by the Reserve Bank of Australia tomorrow. The Australian central bank will hold a monetary policy meeting tomorrow. Most analysts expect the bank to decrease the main Cash Rate to 4.50 percent from the current level of 4.75 percent as the unfavorable state of the global economy, most importantly the crisis in Europe and the economic slowdown in China, make the current high level of the interest … “Aussie Weakens Ahead of RBA Monetary Policy Decision”
Month: October 2011
GBP/USD Lower, GBP/JPY Higher
The Great Britain pound dropped today as the outlook for the nation’s economy was pessimistic today, damping demand for the sterling. The pound sometimes considered a refuge from the problems in Europe as traders flee to the currency from the euro. It looks like today traders were more concerned with the economic health of the UK that isn’t much better than Europe’s. Japan’s intervention allowed the sterling to advance against the yen despite the negative outlook for Britain. … “GBP/USD Lower, GBP/JPY Higher”
US Dollar Rises on Safe Haven Demand
US dollar is rising today against major currencies as a safe haven. Concerns about what’s next for the global economy are causing Forex traders to look for safety — and the US dollar is the best choice. Concerns about what’s next for the global economy — especially as it relates to the eurozone — are causing some trepidation for Forex traders. Worry that the plan announced by eurozone leaders last week won’t … “US Dollar Rises on Safe Haven Demand”
Bank of Japan Intervenes, Sending Yen Lower
Last week, the Japanese yen continued to strengthen at a rate uncomfortable to leaders. As a result, earlier today, the Bank of Japan decided to directly intervene in order to keep the yen lower. Monday’s intervention marks the third time in 2011 that the Japanese have intervened to keep the yen from strengthening too much. The unilateral intervention was announced by Finance Minister Jun Azumi at 10:25 a.m. Japan time. The last time Japan intervened to keep the yen … “Bank of Japan Intervenes, Sending Yen Lower”
USD/JPY: Trading the ISM Manufacturing PMI Oct 2011
The ISM Manufacturing PMI (Purchasing Manager Index) is based on a survey of purchasing managers active in the critical manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the US. This important economic indicator is released during the first week of every month. Here are all the details, and 5 … “USD/JPY: Trading the ISM Manufacturing PMI Oct 2011”
The Strength of the US dollar is Unconfirmed
We can see some massive dollar moves after BOJ intervention which obviously caused cause some selling pressure on other majors as well, and not only against the Japanese yen. We are sure that many traders out there are considering a change of a larger trend on many FX pairs; in fact, even we did. But … “The Strength of the US dollar is Unconfirmed”
Europe Made Pound Stronger vs. Safer Currencies, Weaker vs. Euro
The Great Britain pound gained this week against the dollar and the yen as the optimism caused by the revelation of the plans to battle the sovereign-debt crisis in Europe damped demand for safer assets. That same optimism allowed the euro to outperform the pound. The weak started with the doubts about ability of the European leaders to make decisive actions in dealing with the crisis. The resulting risk aversion sentiment eroded the strength of the sterling against the greenback and the yen, but made it … “Europe Made Pound Stronger vs. Safer Currencies, Weaker vs. Euro”
Franc Gains vs. Dollar, Retreats vs. Yen
The Swiss franc gained as the problems in Europe made traders flock to the currency, even though it’s hard now to be consider the Swissie a “safe currency” after the euro-peg was implemented by the central bank. That peg was likely the reason the franc wasn’t been able to rise against the euro, while the troubling signs from Switzerland itself made investors prefer to buy the yen than the Swiss currency. The announcement of the plans to help Greece … “Franc Gains vs. Dollar, Retreats vs. Yen”
Loonie Higher vs. Euro, Lower vs. Yen as Concerns for Europe Return
The optimism about Europe has left markets and traders were leaving riskier currencies, especially the euro. As a result, the Canadian dollar fell versus the “safe” yen, but gained against the euro. The decline of most risky currencies followed the big jump after the plans for dealing with Europe’s crisis were revealed. Some analysts interpret such performance as a natural correction after an excessive rally, not as reverse of the trend. That’s to be seen, … “Loonie Higher vs. Euro, Lower vs. Yen as Concerns for Europe Return”
Yen Continues to Strengthen
Japanese yen continues to strengthen, prompting Prime Minister Yoshihiko Noda to assure Japan’s parliament that leaders are ready to intervene if it becomes necessary. Japan prefers a weak currency, since it provides an advantage in the realm of exports. Indeed, a number of Japanese companies were hit hard in Quarter 3 due to a stronger yen. Japanese leaders are becoming nervous about how a stronger yen could slow exports, … “Yen Continues to Strengthen”