Poland’s central bank maintained its key interest rate at the highest level in almost three years as the nation’s currency declined after the European debt crisis deterred investors from buying riskier currencies of emerging markets. The Narodowy Bank Polski (the National Bank of Poland) left its reference rate at 4.5 percent for the sixth month, the highest level since January 2009. The central bank kept the rate high to support the zloty and to tame … “Polish Central Bank Keeps Rates High to Support Zloty”
Month: December 2011
Japanese Yen Gains as Sentiment Worsens
Japanese yen is gaining as sentiment reverses. Reports out of Europe are sending Forex traders looking for safe haven, and that is providing a boost to the yen against its counterparts. Earlier, safe haven currencies were heading lower as risk appetite improved on the idea that eurozone leaders are ready for a tighter fiscal union. Those hopes, however, are fading as Germany turns back suggestions that current bailout … “Japanese Yen Gains as Sentiment Worsens”
More Strength For Australian dollar As Risk Trades higher
Stocks trade higher, and the S&P Futures at new highs around 1267 on optimism that European leaders will approve aggressive plans by the end of the week to rescue the region from a debt crisis. Meanwhile, majors found some support against the US dollar, but moves were really poor with some low volume and momentum. … “More Strength For Australian dollar As Risk Trades higher”
Pounds Heads Lower on Unfavorable Fundamental Indicators
The Great Britain pound edged down on the signs that the UK economy is slowing, possibly resulting in additional easing from the nation’s central bank. The pound bounced back a little today, but it’s likely to head down again as today’s fundamental reports are expected to be negative. The value of the UK retail sales declined 1.6 percent year-over-year in November, according to the Retail Sales Monitor of British Retail Consortium. The Halifax house … “Pounds Heads Lower on Unfavorable Fundamental Indicators”
Loonie Climbs After BoC Policy Decision
The Canadian dollar jumped after the Bank of Canada left the main interest rate unchanged. The positive fundamentals may spur the Canadian currency even further to the upside. The BoC decided yesterday to maintain its key overnight rate at 1 percent. The Bank noted in its statement the negative developments in Europe: Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened. Additional measures will be required to contain … “Loonie Climbs After BoC Policy Decision”
AUD/USD: Trading the Australian jobs Dec 2011
The Australian employment change is an important leading indicator which often has a significant impact on the markets. Traders and analysts carefully examine employment figures in trying to determine the overall health of the economy. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at 00:30 GMT. Indicator Background Job creation … “AUD/USD: Trading the Australian jobs Dec 2011”
Franc Retreats as CPI Declines
The Swiss franc dropped today after the government report showed that the consumer prices fell last month in Switzerland, leading to the speculation about a possibility of another intervention by the nation’s central bank. The Federal Statistical Office reported that Switzerland’s consumer price index fell 0.2 percent in November, following the 0.1 percent drop in the month before. The expected reading was a 0.1 percent growth. Tomorrow’s report is expected to show that … “Franc Retreats as CPI Declines”
Euro Struggles as France and Germany Try to Reconcile
One of the issues facing the future of the eurozone is the differences in opinion between France and Germany. Since the beginning, the two countries have had different approaches to the monetary union. And, unless those differences can be reconciled, real progress can’t be made in the eurozone. Questions of whether to share debts amongst eurozone states, whether to force individual states to follow stricter guidelines, and a number of other issues continue to divide the two biggest … “Euro Struggles as France and Germany Try to Reconcile”
Aussie Drops as RBA Reduces Main Interest Rate
The Australian dollar weakened today after the Reserve Bank of Australia cut its key interest rate as the unfavorable developments in the global economy justified easing of the monetary policy. The RBA cut its cash rate by 25 basis points to 4.25 percent today. RBA Governor Glenn Stevens said in the statement that “the inflation outlook afforded scope for a modest reduction in the cash rate”. The decision hasn’t surprised Forex market participants, but the reaction … “Aussie Drops as RBA Reduces Main Interest Rate”
US Dollar Slightly Higher After Weak Open
US dollar was softer earlier, thanks to a degree of optimism that had Forex traders looking for higher yields. However, the markets are quite ready for true optimism and the dollar has since strengthened against high beta currencies. One of the reasons the US dollar is gaining some strength right now is due to concerns that are, once again, creeping in about the state of the global economy. Some of the earlier optimism … “US Dollar Slightly Higher After Weak Open”