Euro was a little higher earlier as some hope for joint euro bonds was floated. However, a press conference with three European leaders today scuttled that hope and sent the euro lower in Forex trading. Angela Merkel, Nicolas Sarkozy, and Mario Monti held a press conference today, and made it clear that their countries weren’t going to pressure the ECB into doing something to alleviate the sovereign debt crisis. … “Merkel, Sarkozy and Monti Comments Sink Euro”
Month: November 2011
UK Pound Down Against Dollar, But Strengthening Against Euro
Great Britain pound may be down against the US dollar today, and down against the Japanese yen, but it is up against the euro. Sterling is lower against the dollar and yen on risk aversion, but, in terms of European currencies, it appears to be taking the safe haven designation. As Europe’s troubles cause more unease amongst Forex traders, and as concerns about what’s next for Asia (especially China) weigh … “UK Pound Down Against Dollar, But Strengthening Against Euro”
Brazilian Real Drops on China’s Manufacturing
The Brazilian real fell today, while yesterday it was at the seven-week low, as the report showed that China’s manufacturing is slowing. HSBC Flash China Manufacturing PMI fell to 48.0 in November from 51.0 in October. The reading below 50.0 indicates a decline of the industry. The surging borrowing costs of the European nations add to the reasons that deter investors from buying the riskier currencies, like the real. Brazil’s economy feels the impact of the outside … “Brazilian Real Drops on China’s Manufacturing”
Japanese Yen Gains as Eurozone Troubles Continue
Japanese yen is gaining against the euro and the pound as eurozone troubles continue. Additionally, the yen is getting a boost as Asian companies cut their earnings outlooks. As sentiment turns negative, Forex traders — and others — look for stability and safe haven. All bonds in the eurozone seem to be taking a hit right now, no matter what country it is. The latest German bund auction was considered a failure, … “Japanese Yen Gains as Eurozone Troubles Continue”
US Dollar Rises as German Auction Confirmed Problems of EU
The US dollar rose today as the German bond auction could be considered a disaster, fueling fears of the European debt contagion, while the US economy showed the signs of recovery. Germany auctioned its debt today and missed its maximum target by 35 percent, sending yield higher and reinforcing the negative outlook for the future of the European economy. Economists explained that the bad outcome of the auction doesn’t mean that the German economy is bad, … “US Dollar Rises as German Auction Confirmed Problems of EU”
Euro Continues to Tumble
Euro continues to tumble in Forex trading, dropping as the news out of Europe continues to disappoint traders everywhere. Yesterday, euro showed some spunk, but, once again, the 17-nation currency has been able to hold on to any gains. As nearly everyone is becoming accustomed to, the news is of a failure to come to an agreement about how to handle sovereign debt in the eurozone. Once again, talks amongst European leaders have resulted in nothing … “Euro Continues to Tumble”
Rupee Rebounds as Central Bank Supports Currency, But Falls Again
The Indian rupee rebounded today after seven sessions of decline on the speculation that the central bank will intervene to stem the currency’s losses, but resumed its drop later. Reserve Bank of India Governor Duvvuri Subbarao said that the bank “can and will intervene” in the proper time to reduce impact of the currency markets volatility on the economy. The Reserve Bank removed the $100 million net foreign-exchange ceiling on the currency swaps in an attempt to increase supply … “Rupee Rebounds as Central Bank Supports Currency, But Falls Again”
NZ Dollar Drops as Sentiment Remains Unfavorable
The New Zealand dollar fell today as the continuing problems in the European Union ensure that risk aversion sentiment remains in place, damping the attractiveness of the currencies related to economic growth. The rising borrowing costs of the European nations continue to have a negative impact on investors’ willingness to buy riskier assets. On top of that, the signs of slower growth in China further reduce demand for the commodity currencies. The MSCI Asia Pacific (excluding Japan) Index dropped 2.2 … “NZ Dollar Drops as Sentiment Remains Unfavorable”
Failed German Auction Paves Way for Euro-Zone QE
Germany refuses to use the unlimited purchase power of the ECB to buy bonds in a significant magnitude that would stop the rapid deterioration of the debt crisis. But now that the bond rout reached its own doors, the economic giant could lift its objection. Is massive euro-printing on the way? Up to now, Germany … “Failed German Auction Paves Way for Euro-Zone QE”
EUR/USD: Trading the German IFO Nov 2011
The German Ifo Business Climate is a monthly composite index of about 7,000 businesses, which are surveyed on current business conditions and their expectations concerning economic performance over the next six months. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Thursday at 9:00 GMT. Indicator Background The German Ifo Business Climate, … “EUR/USD: Trading the German IFO Nov 2011”