The Australian dollar today extended its drop for the second day after the government report showed the inflation slowed in the third quarter of this year. The Australian consumer price index fell to 0.6 percent in the third quarter from 0.9 percent in the second quarter. The leading index declined 0.1 percent. The fundamentals confirmed the economic slowdown and reinforced the prospects for an interest rate cut by the central bank. AUD/USD fell from 1.0426 to 1.0367 as of 5:22 GMT … “Inflation Slows in Australia, AUD Drops for Second Day”
Month: October 2011
Pound Fluctuates vs. Safer Currencies on Dangers to Economy
The Great Britain pound fluctuated against the safer currencies on the concerns about the stalling nation’s economy. The sterling performed better against the dollar and the yen, while was struggling against the franc. The fundamentals were mixed for the economy and the currency of the United Kingdom. On one hand, the UK trade balance deficit shrank to £2.0 billion in the second quarter down from £4.1 billion in the first quarter, while analysts expected it reach £9.7 billion. On the other … “Pound Fluctuates vs. Safer Currencies on Dangers to Economy”
Canadian Dollar Drops as BoC Holds Rate, Cuts Economic Forecast
The Canadian dollar fell today after the Bank of Canada kept the main interest rate unchanged and predicted a slower growth of the nation’s economy, fueling the speculation that the bank will extend the pause on interest rates increases. The Bank of Canada decided to maintain its key overnight rate at 1 percent. The central bank spoke about its outlook for the economy and it was grim: The outlook for the Canadian economy has weakened since July, with … “Canadian Dollar Drops as BoC Holds Rate, Cuts Economic Forecast”
India’s Rupee Rebounds on Inflation Pressure
The Indian rupee climbed today after the previous decline as the currency’s weakness spurred the speculation the central bank will intervene to support the currency and trim the inflation. Inflation in India stayed above 9 percent since the beginning of December even after the central bank has increased the interest rates. The weaker currency contributed to the growth of the consumer prices. The Reserve Bank of India may be forced to increase the borrowing costs again to tame the inflation growth. … “India’s Rupee Rebounds on Inflation Pressure”
Japanese Yen Strengthens Against Majors
Japanese yen is strengthening against majors today, heading higher against the US dollar, euro and the Great Britain pound. Yen buying is on the rise, as Forex traders look for a little direction for what lies ahead. Earlier, the yen was fairly stable against the US dollar, since Forex traders offloading dollars and buying yen were offset by Japanese firms selling yen in order to invest in offshore resources. However, the dynamic … “Japanese Yen Strengthens Against Majors”
USD/CHF Detailed Technical Elliott Wave Analysis
Usd/Chf recovered in five waves since August, after a very clear breakout to the upside, out of a downtrend channel, which is the most important evidence of a change in trend; from bearish to bullish. As such, we are very confident that significant low is in place and that Usd/Chf will move even higher in … “USD/CHF Detailed Technical Elliott Wave Analysis”
Euro Slips as Some Get a Little Nervous about Tomorrow
Euro saw some solid progress yesterday, but today the 17-nation currency is slipping a bit. Some Forex traders are getting a little nervous about tomorrow. EU leaders say they’ll announce a plan to contain the sovereign debt crisis on Wednesday, but there are some doubts. One of the reasons that there is some skepticism is due to the fact that we’ve been here before. Indeed, European … “Euro Slips as Some Get a Little Nervous about Tomorrow”
GBP/USD: Trading the US New Home Sales Release
The New Home Sales Report, published monthly, is a leading indicator of housing activity. As a new home is likely to be the largest purchase that a consumer will make, this indicator provides important data about the mood of consumers and the health of the economy. A higher reading than that expected by the market is bullish … “GBP/USD: Trading the US New Home Sales Release”
NZD Reverses Rally as Inflation Slows
The New Zealand dollar fell today, following the yesterday’s rally, after the government report showed the inflation slowed more than expected in the third quarter. New Zealand’s Consumer Price Index rose 0.4 percent in the third quarter of this year. That’s compared to the median forecast of 0.7 percent in the growth by 1.0 percent in the second quarter. That’s bad for the currency as the weakening inflation pressure means reduced need for the central bank to increase the interest … “NZD Reverses Rally as Inflation Slows”
Australian Dollar Gains as Optimism Strengthens
The Australian dollar advanced today as traders threw out doubts and were ready to take a riskier course. Earlier Forex market participants felt uncertainty caused by the unclear outcome of the EU summit, but it seems they decided to look at the current plans of the European leader in the positive light. Another positive factor for the Aussie (the usual nickname of the Australian currency) was the expansion of the manufacturing in China. The Asian nation is the major trading partner of Australia … “Australian Dollar Gains as Optimism Strengthens”