The US dollar index is lower as the US session comes to a close. Risk appetite has put in an appearance today, and forex traders are looking for better yields and moving away from safe havens. US stocks are set to close higher for the third day, and hope is once again forming that European leaders are really serious about containing the sovereign debt crisis in the eurozone. Efforts to recapitalize European banks … “Dollar Index Falls as Risk Appetite Makes an Appearance”
Month: October 2011
ECB Holds Rates, Expands Asset Purchases, Euro Reacts Positively
The euro rose today, rebounding from the earlier decline after the European Central Bank kept the key interest rates unchanged, but expanded its bond purchasing program. The ECB left its target Minimum Bid Rate at 1.50 percent as was expected by most analysts (though some anticipated a cut of the rates). The bank announced its version of quantitative easing: The Governing Council of the European Central Bank (ECB) has today decided … “ECB Holds Rates, Expands Asset Purchases, Euro Reacts Positively”
BoE Expands Bond Purchase Program, Pound Tumbles
The Great Britain pound slumped today as the Bank of England held the main interest rates unchanged and expanded its bond purchase program today, signaling about weakness of the UK economy and debasing the nation’s currency. The Bank of Englandâs Monetary Policy Committee decided today to keep the official Bank Rate at 0.5 percent. The central bank also increased the size of its asset purchase program by £75 billion to a total of £275 billion. The bank spoke … “BoE Expands Bond Purchase Program, Pound Tumbles”
USD/CAD: Trading Canadian jobs October 2011
The Canadian employment change is an important leading indicator which has a significant impact on the markets. Traders and analysts carefully scrutinize employment figures, and a reading higher than forecast could lift the loonie. Here are the details and 5 possible outcomes for USD/CAD. Published on Friday at 11:00 GMT. Indicator Background Job creation is … “USD/CAD: Trading Canadian jobs October 2011”
Canadian Dollar Retreats in Forex Trading
The Canadian dollar is retreating in forex trading, falling against major counterparts including the US dollar. Loonie is also struggling against other commodity currencies, dropping as it is used to fund purchases of the New Zealand dollar and Australian dollar. Right now, there are concerns that a slowing US economy will reduce the demand for Canadian exports. Canada relies heavily on the US economy to help support its own. … “Canadian Dollar Retreats in Forex Trading”
Trichet’s Final Cut? ECB Preview
Jean-Claude will make his final rate decision after 8 years as the president of the ECB, and he may be forced to reverse recent policy and cut the rates. The decision is only a warm up before the bigger show – the press conference, and this time it is of higher importance, given the extraordinary … “Trichet’s Final Cut? ECB Preview”
Franc Retreats as SNB Expands Currency Reserves
The Swiss franc fell today as Switzerland’s central bank reported its foreign currency reserves grew in September. Traders fear the bank may take additional measures to weaken the franc. The Swiss National Bank reported its foreign currency reserves expanded to 282.352 billion francs ($306 billion) in September from 253.351 billion in August. Forex analysts speculate that the SNB may lower the ceiling for the euro-franc exchanged rate. The central bank … “Franc Retreats as SNB Expands Currency Reserves”
Stocks Rally, AUD & NZD Happy
The Australian and New Zealand dollar extended their rally today, rising against the US dollar for the third day, as stocks advanced amid renewed risk appetite of investors. The Standard & Poorâs 500 Index advanced 1.8 percent yesterday, The MSCI Asia Pacific Index of stocks jumped as much as 2.8 percent. The Thomson Reuters/ Jefferies CRB Index of commodities rose 1.9 percent. Traders remained cautious ahead of the monetary policy meeting … “Stocks Rally, AUD & NZD Happy”
Euro Holds Breath for ECB
Forex traders are waiting for the ECB announcement expected during the European session on Thursday. EUR/USD is slightly lower ahead of the decision, which some expect to result in a cut of 25 basis points. Euro has been steadied a bit by the announcement that Germany would help stabilize its own banks if needed; leaders also said that they would be open to the idea of a bailout fund on the regional level if … “Euro Holds Breath for ECB”
Brazil’s Real Gains as Central Bank Plans Support Currency
The Brazilian real advanced today amid the speculation the Federal Reserve and the European Central Bank are ready to meet the economic challenges and support the global recovery, while Brazil’s central bank is going to stem losses of the Brazilian currency. The newspaper Valor Economico wrote that Brazil’s central bank thin the nation’s currency shouldn’t fall against the dollar faster than other emerging-market currencies. The central bank auctioned currency swaps contracts … “Brazil’s Real Gains as Central Bank Plans Support Currency”