The Russian ruble declined today as prices for crude oil dropped amid concerns about the situation in Europe and Russia’s central bank widened the currency’s trading range. Crude oil declined, falling below the $100 per barrel level to the lowest price in a week, after worries about Europe’s debt crisis strengthened. Crude is the main export of Russia. The Bank Rossii (the Bank of Russia) increased the corridor in which the ruble may trade against … “Ruble Drops with Oil, Bank Rossii Eases Control Over Currency”
Month: December 2011
South Korean Won Gains as Analysts Anticipate Intervention
The South Korean won gained today on speculation that the South Korean central bank will step in to support the nation’s currency that is depreciating amid concerns about global growth. The South Korean currency was declining on falling demand for nation’s exports and uncertain prospects for economic growth. The death of the North Korean leader added to concerns as it may destabilize the political and, as a result, the economic situation in the region. The government said that, … “South Korean Won Gains as Analysts Anticipate Intervention”
Gold Is NOT A Safe-haven; Now Headed Below $1530
Commodities are trading lower this week, while the US dollar is rising sharply after a reversal lower of equities. One of the very weak markets is also gold, which definitely does not have a status of a safe-haven at this point of time. In fact, if we take a look on the intra-day sub-structure from … “Gold Is NOT A Safe-haven; Now Headed Below $1530”
CAD Falls vs. USD & JPY, Rises vs. EUR
The Canadian dollar fell today against the US dollar and the Japanese yen, but advanced versus the euro, as the European debt crisis continues to eat away confidence of Forex market participants and makes them to seek refuge. Concerns that the crisis will hurt the eurozone economy intensified after the European Central Bank said that the lending to European banks surged to the record. Lending to eurozone banks increased â¬214 billion to â¬879 billion in the week … “CAD Falls vs. USD & JPY, Rises vs. EUR”
US Dollar Index Rises on ECB Balance Sheet
US dollar index is rising as Forex traders look for a little safety. The news that the European Central Bank balance sheet is soaring, with new bank lending jumping, has many searching for a little stability. And that means that the US dollar has the upper hand against high beta currencies right now. Forex traders and investors are feeling risk averse right now. Even though consumer … “US Dollar Index Rises on ECB Balance Sheet”
Euro Falls on Risk Aversion
Euro is losing ground, dropping below the 1.30 mark against the US dollar, as risk aversion returns to the markets. Forex traders are concerned about what’s next in the eurozone drama. A recent auction in Italy, of six-month bond issues, went well, but some are worried about what happens at Thursday’s longer-term Italian auction. On top of that, there is still skepticism about what’s next for the eurozone. While new … “Euro Falls on Risk Aversion”
EUR/USD: Trading the US Unemployment Claims Dec 2011
The US Unemployment Claims indicator is published weekly, and measures the number of people filing for unemployment for the first time during the previous week. An increase in unemployment claims leads to less consumer spending and impacts on economic growth. A reading which is higher than the market forecast is bearish for the dollar. Here are all the details, … “EUR/USD: Trading the US Unemployment Claims Dec 2011”
Zloty Gains as Traders Expect Intervention from Central Bank
The Polish zloty advanced today, gaining for the third straight trading session, as Forex market participants expect the nation’s central bank to take actions to support the depreciating currency. The weakening currency increased the zloty value of the country’s debt. Poland’s public debt increased to 52.8 percent of gross domestic product in 2010. That’s a dangerous level as an increase above 55 percent would result in compulsory spending cuts and tax increases under public-finance laws. … “Zloty Gains as Traders Expect Intervention from Central Bank”
Yen Gains as Europe Still Troubles Forex Speculators
The Japanese yen gained today as worries about the European sovereign debt crisis still plague the Forex market, while Asian stocks fell, boosting demand for safer assets. Europe comes to the year-end without any of its problem resolved, leaving traders in sour mood and fearful of the futures. Analysts predict that tomorrow’s report will show that Italian business confidence dropped to the lowest level in almost two years. The MSCI Asia … “Yen Gains as Europe Still Troubles Forex Speculators”
A Soft Chinese Landing is Still a Landing
When the world’s second largest economy slows down, this has a significant impact on currencies, no matter how rapid this slowdown is. AUD and NZD are set for a landing as well. Ilya Spivak of DailyFX discusses China, the effectiveness or ineffective of the QE operations all over the world, the high dependency of the … “A Soft Chinese Landing is Still a Landing”