US dollar is higher right now, gaining as risk aversion makes an appearance. With Italy on the verge of a Greek-like crisis, Forex traders are concerned about what could happen next. It’s true that the Greeks managed to form a unity government, and this government is likely to shepherd through the austerity measures that will lead to the available bailout funds for Greece. However, there is doubtful news to replace it. … “Concerns about the Eurozone Send US Dollar Higher”
Month: November 2011
Concerns Shift to Italy, Making Euro Weaker
The euro declined today as investors turned their attention from Greece to Italy and the situation there was bad enough to spur talks about spreading of the debt contagion across the Eurozone. Greek Prime Minister George Papandreou agreed to resign and let the unity government, formed by the ruling and the opposing parties, to make arrangements for getting the bailout. The news brought a little relief as now Italy may lose its leader. Italian Prime Minister Silvio … “Concerns Shift to Italy, Making Euro Weaker”
Franc Drops as CPI Falls, SNB Ready to Intervene Again
The Swiss franc weakened today after the report showed that the inflation in Switzerland unexpectedly declined, spurring the speculation that the central bank may tighten the peg of the Swiss currency to the euro. The Federal Statistical Office reported that the Swiss Consumer Price Index fell by 0.1 percent in October, following the 0.3 percent growth in the preceding month. Analysts promised the index to increase by 0.2 percent. The members of the Swiss National Bank were already worried … “Franc Drops as CPI Falls, SNB Ready to Intervene Again”
USD/CAD: Trading the Canadian Housing Starts Release
The Housing Starts indicator is an important economic leading indicator, considered by analysts as a good measure of consumer spending. A higher reading than forecast by the market points to a growing economy and is bullish for the loonie. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Tuesday at 13:15 … “USD/CAD: Trading the Canadian Housing Starts Release”
US Banks Aren’t So Much Better than European Banks
European banks are exposed to Greek and other peripheral sovereign debt. Their leverage is very high and quite dangerous. The official pledge by European leaders to recapitalize the banks puts even more pressure and focus on the old continent. In the US, banks have been hit harder at the beginning of the crisis, and with lower leverage, … “US Banks Aren’t So Much Better than European Banks”
5 Reasons Why Israel Will Not Attack Iran – But
On November 8th, The International Atomic Energy Agency(IAEA) is due to publish an updated report about Iran’s nuclear program. It is expected to provide new and worrying details about Iran’s nuclear capabilities. Towards this event, news about an upcoming Israeli attack on Iran has emerged. The chances of an airstrike to happen are low. 5 … “5 Reasons Why Israel Will Not Attack Iran – But”
Aussie Posts Weekly Loss as RBA Cut Interest Rates
The Australian dollar ended this week with losses against some majors, including the US currency and the euro, as the negative fundamentals caused Australia’s central bank to cut its main interest rate. The Australian currency (often called the “Aussie”) depends on the performance of commodities as Australia’s economy is based on export. And commodities are under heavy pressure from various negative factors these days. The debt problems in Europe, the signs of an economic slowdown … “Aussie Posts Weekly Loss as RBA Cut Interest Rates”
Swiss Franc Lower as Foreign Currency Reserves Decline
The Swiss franc dropped after Switzerland’s central bank reported that the nation’s foreign currency reserves decline last month. The Swiss National Bank reported that the foreign currency reserves declined to 242.7 billion francs on October from 282.2 billion francs in September. The balance of the foreign assets was down 29.7 billion francs in September, following the drop by 12.3 billion francs in August. For a long time the SNB was attempting to weaken … “Swiss Franc Lower as Foreign Currency Reserves Decline”
Canadian Employment Shrinks, CAD Slumps
The number of employed persons in Canada unexpectedly declined last month and the unemployment rate increased more than was anticipated, leading to the slump of the Canadian dollar. The forecast for the Canadian employment report weren’t optimistic at all, promising the growth of the employment to slow from 60,900 in September to just 16,300 jobs in October. The actual report proved truly disastrous, even compared to the forecast, as the employment shrank by 54,000, almost erasing the gains from the previous month. As a result, … “Canadian Employment Shrinks, CAD Slumps”
Japanese Yen in Demand from China
Japanese leaders recently intervened in the Forex market in order to weaken the yen, which has been strengthening lately. However, efforts to keep the yen lower have been running into trouble as China increases its investment in Japanese notes and bonds. Normally, China doesn’t present much of a problem for Japan. China holds a large number of currency reserves denominated in US dollars, and, until quite recently, Chinese efforts at diversification have … “Japanese Yen in Demand from China”