India’s Rupee Drops to Record

The Indian rupee sank today as the negative outlook for the country’s economy and the unfavorable developments in the global economy hurt the prospects for the currency. The Reserve Bank of India slashed its forecast for the nation’s growth to 7.6 percent from 8 percent. India’s trade balance deficit widened to a 17-year high of $19.6 billion in October and may increase further in case oil prices would push the import bill higher. The central bank voiced concern about the weakness … “India’s Rupee Drops to Record”

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FX Lesson On GBP/USD: How Broken Support Becomes Resistance

Pound is one of the weakest in this week, down almost 300 pips from Friday highs, currently trades around 1.5600-1.5680 range. Guest post by Gregor Horvat We at www.ew-forecast.com anticipated that move, on some basics of technical analysis “how broken support becomes resistance”. Here is the chart and comments that we shared with our subscribers … “FX Lesson On GBP/USD: How Broken Support Becomes Resistance”

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US Dollar Fluctuates on Mixed Macroeconomic Reports

The US dollar was rising today, but now declines after the reports showed that the US economic growth were less than previously estimated, but the conditions for the US manufacturers improved. The US gross domestic product rose 2.0 percent in the third quarter, according to the preliminary estimate of the Bureau of Economic Analysis. That’s worse than the previous estimate of 2.5 percent, but better than the 1.3 percent increase in the second quarter. … “US Dollar Fluctuates on Mixed Macroeconomic Reports”

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Aussie Retreats as Risk Aversion Sets In

Aussie is retreating after showing some signs of gains earlier. Now, though, Aussie is heading lower as risk aversion sets in. Concerns about sovereign debt in Europe, and the budget issues plaguing the US, are weighing on riskier currencies today. Earlier, as US stocks pared gains and headed higher, the Australian dollar showed signs of gains, supported, in part, by recovering gold prices. Now, even though gold prices … “Aussie Retreats as Risk Aversion Sets In”

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Euro Higher for Now, But Debt Remains a Problem

Euro is higher right now, gaining as some Forex traders engage in short covering. However, the 17-nation currency is still vulnerable to debt problems — in the eurozone and in the US. For now, euro is getting a bit of a boost after some choppy trading yesterday, and a flight to safety for markets. Middle East demand has helped support the euro up until now in today’s Forex trading, but that could easily fade. … “Euro Higher for Now, But Debt Remains a Problem”

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SA Rand Rebounds on Outlook for Interest Rates

The South African rand rebounded today after yesterday’s decline on the speculation the central bank will keep its interest rates unchanged, continuing to draw foreign investors. South Africa’s interest rates are important for the rand as the differential between the South African rates and the borrowing costs in the developed markets attract investors interested in carry trades. The main interest rate of South Africa is at 5.5 percent, compared to 0.25 percent in the USA, 1.25 … “SA Rand Rebounds on Outlook for Interest Rates”

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Spanish Election Results – Not Necessarily Market Friendly

The general elections held in Spain yielded a decisive result: the center-right PP party won a wide absolute majority in parliament, beating the outgoing socialist government. With a mandate to cut and the ability to carry out the policy, Mariano Rajoy’s government is expected to get Spain out of the crisis – at least in … “Spanish Election Results – Not Necessarily Market Friendly”

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Global Economy Unfavorable for Riskier Currencies, Brazilian Real Drops

The Brazilian real ticked down as the developments in the global economy made investors favor safer assets over riskier ones. The US politician weren’t been able to agree on budget cuts. Germany’s Finance Ministry admitted that the nation’s economic growth was “noticeably slower”. All in all, it remains very hard to convince investors to buy riskier currencies, even with promises of higher yield. Unfortunately for Brazil and its currency, the foreign … “Global Economy Unfavorable for Riskier Currencies, Brazilian Real Drops”

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US Dollar Mostly Higher, Even on Deficit Panel Failure

A bi-partisan committee designed to find a solution to the debt crisis in the US has failed. As a result, US stocks are in free fall today. The US dollar, though, is mostly higher in Forex trading. US dollar is gaining in Forex trading as concerns about world events catch up with investors and traders. Risk aversion is a major part of financial market proceedings today, and that means that Forex traders are … “US Dollar Mostly Higher, Even on Deficit Panel Failure”

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