The Canadian dollar advanced today after the data from the US improved outlook for Canada’s southern neighbor and muted the negative impact of the fears of Europe’s sovereign-debt crisis. Crude oil rose 2.4 percent to $88.37 per barrel in New York, following the drop by 0.9 percent. Oil is the chief export of Canada. According to the US Bureau of Labor Statistics, the Producer Price Index advanced 0.8 percent in September (seasonally adjusted). That’s an improvement … “Improving Economy of US Results in Rally of CAD”
Month: October 2011
China’s Economic Growth Helps Aussie, RBA Signals About Rates Cut
The Australian dollar climbed today as the strong growth of China’s economy increased attractiveness of Australia’s currency. The Reserve Bank of Australia suggested the policy makers may cut the interest rates in the near future. China’s gross domestic product grew 9.1 percent in the third quarter from a year ago. The increase was less than the 9.5 percent advance in the second quarter, but the slower growth means lower probability of additional measures from the government … “China’s Economic Growth Helps Aussie, RBA Signals About Rates Cut”
Japanese Yen Heads Higher on Risk Aversion
It’s probably not surprising to most Forex traders that the Japanese yen is higher today, thanks to all the uncertainty in the financial markets — and the uncertainty for the economy. Risk aversion is high today as concerns about the future of regional economies, and the global economy, dominate the markets. As a result, Forex traders are looking for safe havens, and the Japanese yen is near the top of the list when investors want a stable currency. In the US, concerns … “Japanese Yen Heads Higher on Risk Aversion”
UK Pound Lower on Stagflation Worries
UK pound is heading lower today in Forex trading against the US dollar on all the concerns about what’s next for the British economy. Right now, it appears that stagflation might be the name of the game. For the last couple of years, the Bank of England has been trying to stimulate economic growth, while at the same time keeping inflation in check. It’s a tightrope walk, and it doesn’t seem to have been working very … “UK Pound Lower on Stagflation Worries”
Euro Down for Second Day as Sentiment Deteriorates
The euro today extended its drop for the second day after Moody’s Investor Service warned that France’s credit rating is in danger and Germany’s economic sentiment deteriorated. Moody’s explained that the negative consequences of the Europe’s debt crisis and the global economic slowdown may hurt France’s economy and, as a result, lead to a downgrade of the nation’s debt rating. The ZEW Indicator of Economic Sentiment for Germany dropped to -48.3 in October from -43.3 in the previous … “Euro Down for Second Day as Sentiment Deteriorates”
Euro Weakness: Not Only the Debt Crisis
The euro is trading lower and will likely to be heavy towards the upcoming summit. But the euro’s problems are not limited to the debt crisis. In the interview below, David Song of DailyFx discusses the euro, the hopes for the US in averting recession, the weight on the pound and other current fundamental questions. … “Euro Weakness: Not Only the Debt Crisis”
South Korean Won Rises as Funds Come to Asia
The Asian economies show a strong economic growth, the fact that attracted the global funds and made them increase their holdings of region’s assets. As a result, Asian currencies rallied, the South Korean won among therm. The exchange data showed that the international funds bought $1.5 billion more Indonesian, South Korean and Taiwanese stocks than they have sold last week. The MSCI Asia-Pacific Index gained almost 2 percent, … “South Korean Won Rises as Funds Come to Asia”
Canadian Dollar Drops as Germany Disappoints Traders
The Canadian dollar went down today, following the week of big gains, after Germany’s politician shattered confidence in ability of the European leaders to end Europe’s woes, saying that there are no an easy solution to the region’s economic problems. The Canadian currency (often nicknamed the loonie) was rallying last week on the speculation the economy of Canada’s neighbor and major trading partner — the US — isn’t as bad as was previously thought. The optimism … “Canadian Dollar Drops as Germany Disappoints Traders”
Aussie Heads Lower on Possible Rate Cut
Earlier this month, Glenn Stevens, the Governor of the Reserve Bank of Australia, indicated that there is a chance that Aussie rates will be cut. Now that the minutes of the October 4 meeting are on the verge of being released, there are concerns about the Aussie in forex trading. Recently, the Australian dollar has had quite the run up against the US dollar. However, considering the way things have been going, … “Aussie Heads Lower on Possible Rate Cut”
USD/JPY: Trend Remains Sideways
After a few days of an extremely ranged price action, Usd/Jpy has exploded to the upside, which however does not seem to be the right direction in days ahead, especially after 80 pip reversal seen on day later. Notice also that price action since mid-August is extremely slow and choppy, clear indication of a corrective, … “USD/JPY: Trend Remains Sideways”