Chinese Premier Wen Jiabao is planning to allow the yuan to increase in flexibility on the currency market, according to state-runCCTV. China’s official television reported, over the weekend, that a meeting between US President Barack Obama resulted in Wen’s pledge that China would allow the yuan (also called the renminbi) to appreciate more on the Forex market, moving more in line with market pressures. Even though Chinese President Hu Jintao reportedly … “Yuan To Move Toward Flexibility on Currency Market”
Month: November 2011
US Existing Home Sales Climb to 4.97 million (annualized)
The sales of existing homes in the US climbed in October by 1.4% and reached a pace of 4.97 million units. This is above last month’s figure of 4.9 million, and better than 4.82 million that was expected. While this isn’t a big upside surprise, this indicator shows that the US continues growing. The figure … “US Existing Home Sales Climb to 4.97 million (annualized)”
Pound Slumps as House Prices Decline
The Great Britain pound dropped today and dropped heavily as the house prices in Britain tumbled, reinforcing the negative outlook for the UK economy. Rightmove reported that the House Price Index was down by 3.1 percent in November from October, following the increase by 2.8 percent in October from the preceding month. That was the biggest drop since November 2010. The drop of the prices was attributed to the negative impact of the European crisis on the confidence of consumers and businessmen. … “Pound Slumps as House Prices Decline”
Yen Profits from Debt Problems of Europe & USA
The Japanese yen rose against the euro and fluctuated versus the dollar as concerns about the US debt added to uncertainty caused by the European crisis. Rumors say the US Congress may announce that its members failed to reach agreement about spending cuts needed to reduce the budget deficit. Spain was yet another European country to lose government as the ruling Socialist Party lost election on the weekend. The Standard & Poorâs 500 Index … “Yen Profits from Debt Problems of Europe & USA”
EUR/USD:Trading the US GDP
The Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. Thus, publication of the US GDP will likely have a significant impact on EUR/USD. A reading which is better than the market forecast is bullish for the dollar. Here … “EUR/USD:Trading the US GDP”
USD/JPY: Trading the Existing Home Sales Indicator
The Existing Home Sales Report is an important economic indicator, and is utilized by analysts to measure consumer demand in the housing sector. As a house is likely to be the largest purchase that a consumer will make, this indicator provides data about the mood of consumers and the health of the economy. A higher … “USD/JPY: Trading the Existing Home Sales Indicator”
Another Week of Risk-Off, Yen in Demand
The Japanese yen was rising through this week as concerns about the European debt crisis returned to markets with new strength, reassuring that safe assets would be in high demand. The surging borrowing costs of the European nations refueled doubts and fears among traders, driving them to the safety of the yen. There aren’t many choices for traders seeking for “safe” currency as the franc basically lost its “safe haven” status after … “Another Week of Risk-Off, Yen in Demand”
Pound Climbs on QE Talks in USA
The Great Britain pound advanced yesterday on the good macroeconomic data from the USA and the speculation the Federal Reserve is going to make the monetary policy even more accommodative. The US leading index was up 0.9 percent in October, following the 0.1 percent increase in September. This report together with other data, like rising building permits and falling unemployment claims, pictures the US economy as strong and recovering. The Standard & Poorâs … “Pound Climbs on QE Talks in USA”
Loonie Makes Way Higher as Tensions Recede
The Canadian dollar strengthened today after the positive fundamental report lead to optimism among investors that was further reinforced by the good news from Europe. Canada’s consumer prices increased 0.3 percent on a seasonally adjusted monthly basis from September to October, after rising 0.4 percent the month before. The Canadian leading indicators rose 0.2 percent in October, after the gain of 0.1 percent in September. The reading was in line with … “Loonie Makes Way Higher as Tensions Recede”
Korea’s Won Still Feels Pressure from Europe
The South Korean won remained lower today as concerns about the sovereign debt crisis in Europe were negative for the currency. Spain auctioned its new 10-year notes at the average yield of 6.975 percent yesterday, causing the Kospi index of shares drop 2 percent today. Yield on Italyâs benchmark 10-year debt jumped above 7 percent this week. The economic health of South Korea itself looks good, but Finance Minister … “Korea’s Won Still Feels Pressure from Europe”