The Japanese yen rose today as the escalating sovereign-debt crisis in Europe resulted in more pessimistic outlook for the region’s economic growth. The European Commission estimated that the economic growth in the European Union will almost stall next year. Gross domestic product of the EU and the Eurozone will grow only 0.5 percent through 2012, according to the EC forecast. The main reason for such downbeat outlook, as one may expect, is the credit crisis in the region. … “Yen Gains as Europe’s Crisis Means Slower Growth”
Month: November 2011
Canadian Trade Balance Posts Surplus, CAD Rebounds
The Canadian dollar rebounded from the lowest level in four weeks after the nation’s trade balance posted an unexpected surplus in September, improving sentiment about Canada’s economy and increasing appeal of the Canadian currency. Canada’s merchandise exports grew 4.2 percent, while imports decreased 0.3 percent, resulting in trade balance surplus of $1.2 billion in September. Most analysts expected Canada’s trade balance deficit to stay near its previous level … “Canadian Trade Balance Posts Surplus, CAD Rebounds”
Japanese Yen Lower as Risk Appetite Makes an Appearance
The Japanese yen, after heading higher yesterday on risk aversion, is pulling back against major counterparts as a bit of risk appetite shows in Forex trading. Yesterday, Japanese yen surged on safe haven demand as eurozone troubles continued to mount. Today, though, with the ECB buying up Italian bonds in an effort to prevent disaster, and somewhat encouraging economic data coming from the US, risk appetite is making an appearance. As a result, … “Japanese Yen Lower as Risk Appetite Makes an Appearance”
Aussie Downtrend Stops on Better Data
Concerns about the Australian employment report prompted the Down Under currency to lose ground to the US dollar and the Japanese yen yesterday. Today, though, the downtrend has stopped, and Aussie is gaining some ground. The employment report came in better than expected, with the jobless rate falling to 5.2 percent, rather than remaining steady at 5.3 percent. Many analysts expected October to be weaker than it was, and many Forex … “Aussie Downtrend Stops on Better Data”
Indonesian Rupiah Falls as Central Bank Cuts Interest Rates
The Indonesian rupiah slipped today after the Bank Indonesia decreased its main interest rate, while concerns about the European debt added to the downside pressure. The Indonesian central bank cut the key rate by 50 basis points to 6 percent today. It was a surprise move that caught traders unprepared as analysts predicted that the cut would by 25 points at most. The costs of Italy’s debt surged to the levels that forced … “Indonesian Rupiah Falls as Central Bank Cuts Interest Rates”
SNB Resists Urge to Weaken Franc Further
The Swiss franc strengthened today on the speculation the Swiss National Bank will refrain from raising the ceiling for the currency in the near future. The SNB may be unwilling to further weaken the franc because an increase of the cap for the currency is virtually the only instrument it has left in case the threat of deflation would materialize. The case for weakening the nation’s currency is strong, however, amid the mounting signs of slower growth and the central bank may be … “SNB Resists Urge to Weaken Franc Further”
USD/JPY:Trading the UoM Consumer Sentiment November 2011
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and can help strengthen the US dollar. Thus, a reading that is higher than predicted by the markets will be bullish for the dollar. … “USD/JPY:Trading the UoM Consumer Sentiment November 2011”
France Moves South – According to the Bonds
The gap between German bunds and French OATS continues rising. French yields are currently at 3.30%, while German ones are at 1.75%. The gap of 1.55% isn’t the worse we have seen – it passed 1.60% earlier. France is in the middle between the “Club Med” or PIIGS countries and the richer northern countries. The … “France Moves South – According to the Bonds”
EUR/USD Breaks to the Downside; “It may get really
The US dollar moved significantly higher in recent sessions, as Risk trade fell sharply, driven by fears over the euro zone crisis! It was the worst day in six weeks for the US stocks market which lost more than 3%. It was also one of the worst days for Eur/Usd pair which lost more than … “EUR/USD Breaks to the Downside; “It may get really”
Euro’s Biggest Drop Since August 2010
The euro posted the biggest drop since August 2010 yesterday, reaching the lowest level this month against the dollar and the yen and the lowest price since February against the pound today, as Forex market participants are becoming more and more concerned about the European debt crisis. The yield in Italy’s 10-year bonds soared to 7.48 percent yesterday. Traders are worried that Italy, like Greece, may struggle to elect a new leader, … “Euro’s Biggest Drop Since August 2010”