The Swiss franc strengthened as the speculation the Swiss National Bank won’t boost the cap to the currency made investors to look at the franc with renewed interest. The SNB pegged the franc to the euro on September 6, imposing ceiling for the first time in more than three decades. Since the introduction of the cap the performance of the franc tied to the performance of the euro. Currently, the euro is rising with the advance of the European stocks and the franc follows. The Stoxx Europe 600 Index gained … “Swiss Franc Regains Footing as Talks About Ceiling Recede”
Month: October 2011
Chilean Peso Goes Higher with Copper on Optimistic Mood
The Chilean peso rose today as copper jumped, bolstered by the optimistic outlook for resolution of the debt crisis in the European Union. Futures for delivery of copper in December jumped 13 percent from the low of $2.994 on October 3 to $3.3955 per pound on COMEX. Copper is the main export of Chile. Optimism, caused by the promise of France’s and Germany’s leader to recapitalize the European bank and to resolve the credit problems of the EU, persists and that’s good for commodities and commodity currencies. Copper … “Chilean Peso Goes Higher with Copper on Optimistic Mood”
Employment Data Sends UK Pound Lower
A consumer sentiment index measuring how Britons feel about hiring prospects fell to minus 67, a decline of one point. The news that consumers aren’t feeling very confident has the UK pound lower against many of its counterparts on the Forex market. One of the problems for the UK pound recently has been its lackluster economic data. Soft data coming out of Britain continues to weigh on the pound, and worries that the British … “Employment Data Sends UK Pound Lower”
US Dollar Lower as Global Equities Advance
The US dollar remains lower in Forex trading today, heading down as global equities continue gain ground. Instead of focusing on Slovakia’s rejection of the EFSF expansion, traders are focusing on bank recapitalization expectations. Investors are looking for higher yields, and avoiding safe havens right now. Lower yielding assets are being passed over in favor of higher yields as the tone is relatively optimistic ahead of eurozone announcements and the release of the minutes … “US Dollar Lower as Global Equities Advance”
Housing Data & Asian Stocks Rescue AUD & NZD
The currencies of Australia and New Zealand pared their previous losses today as the positive housing data and the advance of Asian stocks returned appeal to AUD and NZD. The House Price Index of Real Estate Institute of New Zealand rose 1.7 percent to 5,235 in September, the highest level since November 2009, from 5,192 August. The Australian Bureau of Statistics reported the home loans increased 1.2 percent from July to August, following the advance by 1.9 … “Housing Data & Asian Stocks Rescue AUD & NZD”
Euro at Three-Week High on Optimism for Banks’ Recapitalization
The euro jumped to the highest level in three weeks today as Forex market participants anticipate the improvement of the European financial system after the recapitalization of the region’s banks. European Commission President Jose Barroso is planning to present proposals on recapitalizing banks. He said yesterday he hopes the proposals would be an “important contribution for the European Council and the euro-area summit on Oct. 23″. Greek Finance Minister Evangelos Venizelos reassured his country will … “Euro at Three-Week High on Optimism for Banks’ Recapitalization”
AUD/USD: Trading the Australian jobs Oct 2011
The Australian employment change is an important leading indicator which often has a significant impact on the markets. Traders and analysts carefully examine employment figures in trying to determine the health and direction of the economy. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at 00:30 GMT. Indicator Background Job creation … “AUD/USD: Trading the Australian jobs Oct 2011”
Retail Sale in Brazil Drops, Drag Real Along
The Brazilian real dropped today as the report showed the retail sales in Brazil decreased and the problems in Europe made the higher yielding currencies, including the real, less attractive. The retail sales declined 0.4 percent in August, following the revised rise by 1.2 percent in July. The median forecast promised a drop by just 0.1 percent. The falling sales reinforced the case for Brazil’s central bank to cut the borrowing costs. Bank’s President Alexandre Tombini said that … “Retail Sale in Brazil Drops, Drag Real Along”
Slovakia Rejected Reviewed Rescue Fund, Euro in Danger
The euro began to lose today’s gains as Slovakia turned out to be only nations from 17 countries of the European Union to reject the redesigned aid fund, threatening the efforts to rescue the region from the debt crisis. Smer, the largest opposition party, is expected to support the changes to the European Financial Stability Facility in the second vote. The party didn’t back up the decision in today’s vote. Finance Minister Ivan Miklos said it’s likely … “Slovakia Rejected Reviewed Rescue Fund, Euro in Danger”
CAD Goes Lower as Fears for Europe Intensifies
The Canadian dollar retreated today as the worries about the crisis in the European Union overshadowed the positive data from Canada’s hosing market. The seasonally adjusted annual rate of housing starts climbed to 205,900 in September from 191,900 in August, according to Canada Mortgage and Housing Corporation. The median forecast was 187,000. The outlook for the economy of the US, the biggest Canada’s trading partner, remained subdued. The IBD/TIPP Economic Optimism Index rose to 40.3 in October from 39.9 … “CAD Goes Lower as Fears for Europe Intensifies”