The Canadian dollar was weaker today as the unfolding situation with the Italian debt decreased appetite for risk among participants of the Forex market. The yield for the 10-year Italian bonds soared to 7.25 percent. That the record since the times when the euro was implemented. Markets reacted negatively to this event. The Standard & Poorâs 500 Index fell as much as 2.9 percent, while the S&P/TSX Composite Index declined 1.8 percent. Futures on crude … “CAD Heads Down as Italy Removes Risk Appetite from FX Market”
Month: November 2011
Safe Haven Demand Sends US Dollar Surging
Safe haven demand is high today as Italy moves to the brink of default. With bond yields surging, and other eurozone countries fighting their own sovereign debt battles, Forex traders are looking for safe haven — and that means the US dollar. US dollar is surging today on the Forex market, especially against the euro. It seems that a crisis is a regular occurrence in the eurozone, and eventually leaders won’t … “Safe Haven Demand Sends US Dollar Surging”
Rand Goes Lower as Moody Changes Outlook to Negative
The South African Rand slipped today as Moody’s Investor Service set the credit rating of South Africa to negative, reducing appeal of the nation’s currency. Moody’s reduced the outlook for the rating of South Africa’s sovereign debt to negative from stable today. The agency listed the reasons for such decision: 1. The growing risk that the political commitment to low budget deficits and the ability to keep within current debt targets could be undermined by popular pressures … “Rand Goes Lower as Moody Changes Outlook to Negative”
Sterling Lower as Risk Aversion Sets In
Great Britain pound is struggling today, after seeing some gains yesterday. Today, though, equities are weighing on sterling as fears about the eurozone mount and result in risk aversion. The latest trigger in the sovereign debt drama is Italy’s bond yield. With the 10-year-bond yield beyond seven percent, it is little surprise that risk aversion is the name of the game today. Concerns still remain, in the background, about … “Sterling Lower as Risk Aversion Sets In”
Aussie Down Ahead of Employment Report
The Australian dollar edged down today as the pessimistic outlook for tomorrow’s employment report outweighed the positive fundamental reports today. Analysts estimated that Australian employment growth slowed to 10,100 jobs in October from 20,400 jobs in September. The unemployment rate is expected to increase from 5.2 percent to 5.3 percent. The report from the Australian Bureau of Statistics will be release tomorrow. The negative employment expectations overshadowed the soaring Westpac consumer … “Aussie Down Ahead of Employment Report”
LCH.Clearnet SA raises Deposit Factors On Italian Debt
After many days of rises in Italian yields across the board, the rumors finally materialized: it is now harder to buy Italian debt. The decision applies to all maturities. This is what happened with Greece, Portugal and Ireland. Italian 10 year bond yields are at 6.77%, close to to yesterday’s numbers, but they will likely … “LCH.Clearnet SA raises Deposit Factors On Italian Debt”
Japanese Yen Gains on Uncertain Prospects for EU Economy
The Japanese yen gained today as some Forex market participants doesn’t consider the current political events in the European Union (namely, the resignation of Greek Prime Minister and the future resignation of Italian Prime Minister) as positive for the European economy. Such traders prefer to buy the Japanese currency as a safe haven. The change of leadership in Greece and Italy is considered to be good by many economists as previous leaders definitely weren’t able to deal with the problems of their … “Japanese Yen Gains on Uncertain Prospects for EU Economy”
Euro Advances as Berlusconi Ready to Step Down
The euro rallied yesterday and done a good job keeping its gains today as Italian Prime Minister Silvio Berlusconi agreed to resign after the austerity measures will be implemented. Italy was contaminated by the Eurozone sovereign-debt crisis, sending the country’s bond yield soaring this summer. The resulting difficulties that the nation’s economy faced left Italy’s Prime Minister out of favor even among his allies. The desertion of allies caused … “Euro Advances as Berlusconi Ready to Step Down”
AUD/USD: Trading the Australian Nov 2011
The Australian employment change is an important leading indicator which often has a significant impact on the markets. Traders and analysts carefully examine employment figures in trying to determine consumer spending and the health of the economy. If the Employment Change figure is better than forecast, this is bullish for the Australian dollar. Here are the … “AUD/USD: Trading the Australian Nov 2011”
Canadian Dollar Loses Ground
Early, the Canadian dollar moved higher in Forex trading, helped by higher oil prices. However, now the loonie is moving lower as traders await the results of the vote in Italy. While the vote is more of a budget issue, it is also being seen as a measure of confidence in PM Silvio Berlusconi. Right now, a little bit of risk aversion has been introduced to the markets. The US dollar is still a little lower against … “Canadian Dollar Loses Ground”