Earlier, euro broke through the 1.3400 level against the US dollar. Optimism from the Italian bond auction helped the 17-nation currency, sending it surging. However, euro has been unable to maintain the rally. Instead, EUR/USD has dropped back below the 1.3400 level, and is, in fact, lower than it was at open. The gains made earlier in the session has pretty much been erased. There were some hopes … “Euro Breaks through 1.3400, but Can’t Maintain”
Month: November 2011
Jim O’Neill Shows Optimism About Debt Crisis, Stock Markets
Jim O’Neil, Chairman of Goldman Sachs Asset Management is optimistic about global stock markets and doesn’t see the falls of August and September happening in the near future. Regarding the debt crisis, he is optimistic that the new Italian government, helped by “strong support from the ECB” will find its way out of the crisis. The … “Jim O’Neill Shows Optimism About Debt Crisis, Stock Markets”
New Zealand Dollar Extends Gains on Optimism
The New Zealand dollar extended its gains today as the positive sentiment continues to reign the Forex market, bolstering the demand for the currencies linked to growth. Italy auctioned its debt today and the results were quite good, at least nothing compared to the disastrous outcome of the German auction. There is the speculation that China is going to shift its focus from slowing the economic growth to stabilizing it near the current level. The Asian stocks … “New Zealand Dollar Extends Gains on Optimism”
Cracks in ECB Sterilization – QE One Step Closer
The European Central Bank failed to sterilize all the bond buying made through the SMP program. As the central bank increased its bond buys by another 8.6 billion euros, it couldn’t drain all the money out of the markets, raising the money supply. This is not the first time that this happens and wouldn’t raise … “Cracks in ECB Sterilization – QE One Step Closer”
USD/CHF: Trading the Swiss KOF Economic Barometer
The Swiss KOF Economic Barometer is a leading indicator which measures overall economic activity and is an excellent indicator of the direction of the Swiss economy. The indicator, which is released monthly, has a major effect on the USD/CHF. A reading which is higher than predicted is bearish for the dollar. Here are all the … “USD/CHF: Trading the Swiss KOF Economic Barometer”
Swiss Franc Rallies Despite Positive Market Sentiment
The Swiss franc advanced yesterday and kept its gains today even though the market sentiment was favorable to riskier currencies, not safer ones. The week started with positive mood on the Forex market that was favorable to higher-yielding currencies. And it was surprising to see the Swissie rallying with them not only against the safe currencies, but also versus the euro. It’s true that the Swiss currency lost much … “Swiss Franc Rallies Despite Positive Market Sentiment”
Aussie Rallies as Traders Again Favor Risk
The Australian dollar advanced today as risk appetite returned to the Forex market, increasing the attractiveness of the currencies with higher-yield. The impressive Thanksgiving sales in the United States and the improving sentiment about the situation in the European Union returned to FX market participants willingness to risk. It’s hard to predict how long such positive mood would hold, but for now currencies related to growth and commodities profited from the improving outlook and the Australian currency was among … “Aussie Rallies as Traders Again Favor Risk”
Japanese Yen Lower as Traders Look for High Yielders
Japanese yen is lower today as Forex traders look for high yielders as risk appetite improves. Indeed, risk appetite is the story as the Dow surges on holiday shopping news. Black Friday was a huge retail success as consumers came out in force. On top of that, retailers are expected to get a boost as Cyber Monday sales are expected to break online shopping records. The Dow is up more than 300 … “Japanese Yen Lower as Traders Look for High Yielders”
US Dollar Falls Back as Risk Appetite Returns on Holiday Shopping
US dollar is heading lower on the Forex market today as risk appetite returns. Last week was all about eurozone weakness and sovereign debt struggles. This week is all about holiday shopping. Indeed, Black Friday ended up being a huge success, and Cyber Monday sales are expected to exceed $1.2 billion. The holiday season shopping frenzy is providing a boost to equity markets, and resulting in risk … “US Dollar Falls Back as Risk Appetite Returns on Holiday Shopping”
NZ Dollar Climbs as Key Wins Elections
The New Zealand dollar jumped today against all other most-traded currencies after the nation’s Prime Minister was reelected with his party, spurring hopes that he’ll be able to improve the country’s budget balance. National Party of Prime Minister John Key won the vote with 48 percent on November 26. Key said that his objective is to return the nation’s budget to surplus by 2014–15. The Business Confidence … “NZ Dollar Climbs as Key Wins Elections”