The US dollar weakened today as the rally of stocks reduced demand for safer currencies. Forex traders remained wary, though, as there are still many signs of possible double-dip recession. The speculation that the European Central Bank is able to support the troubled economy of the European Union, especially the economies of the most-indebted nations, helped to revive risk appetite on markets and boosted equities. The Standard & Poorâs 500 Index rose 1.2 percent. The ECB … “Stocks’ Rally Troubles Dollar, Employment Improves in US”
Month: October 2011
Is the Bank of England Ready for QE2?
While, in America, the talk is all about the likelihood of QE3, in Britain, the Bank of England is mulling QE2. Indeed, this Thursday, when the interest rate decision is announced, many expect that an announcement of an increase in asset purchases will accompany it. There is little the Bank of England can do in terms of lower rates further, since the base rate is already at 0.50%. So, in order to stimulate the economy, BoE … “Is the Bank of England Ready for QE2?”
Economic Growth Stalls in Britain, Pound Feels Pressure
The Great Britain pound retreated today as the government report showed Britain’s economy grew with slower pace than was previously estimated, fueling concerns the UK isn’t able to survive without additional stimulus. The growth of Britain’s gross domestic product in the first quarter was revised from 0.2 percent to 0.1 percent. The growth in the second quarter was also revised down, 0.4 percent instead of previously estimated 0.5 percent. … “Economic Growth Stalls in Britain, Pound Feels Pressure”
Ringgit Gains as Fed Stimulus Can Boost Exports
The Asian currencies, led by the Malaysian ringgit, gained today on the speculation that the Federal Reserve will boost stimulus to the US economy, improving prospect for Asia’s exports. Fed Chairman Ben Bernanke testified yesterday, speaking about the problems that the economic recovery has encountered. He said: Recent revisions of government economic data show the recession as having been even deeper, and the recovery weaker, than previously estimated; indeed, by the second quarter … “Ringgit Gains as Fed Stimulus Can Boost Exports”
CAD Regains Strength as Stocks Advance
The Canadian dollar erased its previous losses today as the global equities rallied, easing concerns for the world economy and improving prospects for growth-related currencies. The speculation that the European leaders discuss the way to revive the region’s banking system brought some relief on the Forex market and improved outlook for Europe’s economy. The resulting advance of stocks had positive effect on commodity currencies, including the loonie. The Standard & Poorâs 500 Index advanced 2.3 percent. … “CAD Regains Strength as Stocks Advance”
Private Sector Participation in the Greek Bailout Revisited
Back in July, Greece expected that about 21% of private bondholders would accept write-downs in order to prevent an outright default its sovereign debt. Now, some eurozone countries, led by Germany, are hoping for a little more from the private sector. A decision on Greek aid is being pushed to October 13 as eurozone countries mull over the options, and try to figure out how to get the private sector more involved in the bailout. … “Private Sector Participation in the Greek Bailout Revisited”
Greek Default Could Trigger Euro Rally, US Recession Could
A default in Greece could already be significantly priced in, and a US recession, which also looks imminent, could help the US dollar. Not necessarily what you were thinking? It’s the “buy the rumor, sell fact phenomenon. But there’s one currency and one event to which this phenomenon will not likely apply. In the interview … “Greek Default Could Trigger Euro Rally, US Recession Could”
US Dollar Strengthens Against Most Major Currencies
US dollar is seeing some strength today, gaining as risk aversion makes an appearance. Concerns about the eurozone, as well as speculation about what Ben Bernanke will say about the economy when he testifies before Congress today, has many forex traders and investors a little nervous. As a result, the US dollar index is stronger as forex traders seek some safe haven. The much stronger dollar is also … “US Dollar Strengthens Against Most Major Currencies”
EUR/USD: Trading the US ISM Non-Manufacturing PMI
The ISM Non-Manufacturing PMI (Purchasing Managers Index) is based on a survey of purchasing managers in sectors other than manufacturing. 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 … “EUR/USD: Trading the US ISM Non-Manufacturing PMI”
Pound Weakens as UK Construction Stagnates
The Great Britain pound dropped today after the report showed that the nation’s construction sector stalled last month, adding incentive for the UK central bank to increase stimulus. The Markit/CIPS Construction Purchasing Managersâ Index was at 50.1, just barely above the 50.0 no-change. The index declined from the August value of 52.6 and was below the median forecast of 51.7. The index reached the lowest level since December, when it below 50.0. … “Pound Weakens as UK Construction Stagnates”