The South Korean won gained today as the nation’s central bank maintained its main interest rate to rein inflation and support country’s economic growth. The Bank of Korea left its key interest rate at 3.25 percent. Such decision was expected by market analysts. BoK Governor Kim Choong Soo explained after the policy meeting, which was held today in Seoul, that policy makers want to slow inflation to 3 … “Won Climbs as BoK Maintains Interest Rates”
Month: January 2012
US Dollar Mostly Higher Today on Risk Aversion
Even though the trade deficit unexpectedly widened in November, the US dollar is moving higher today. For the most part, US dollar is gaining as uncertainty prompts a certain degree of risk aversion. With rumors of an imminent French downgrade, a disappointing Italian debt auction, and worries about banks, it is little surprise that safe havens like the US dollar are in demand. Indeed, there is a great deal of uncertainty … “US Dollar Mostly Higher Today on Risk Aversion”
Ratings Downgrade Would Trigger a Cataclysmic Sell-Off
The French downgrade, which is rumored as coming any minute, isn’t priced in yet. The actual move means that the core is officially hit by the debt crisis, says Christopher Vecchio of DailyFX. In the interview below, Vecchio discusses actions by the ECB, the decoupling of the US from the rest of the world and … “Ratings Downgrade Would Trigger a Cataclysmic Sell-Off”
Euro Lower on Italian Debt Sale Disappointment
There were high hopes for the latest Italian debt sale, but they were disappointed. Indeed, even though Italian debt costs dropped below 5 percent, the sale failed to raise the kind of money needed to overcome some of the budget woes. As a result, the euro is down against its major counterparts. Italy’s debt costs dropped largely because of the loans it received from the ECB. However, even that was … “Euro Lower on Italian Debt Sale Disappointment”
Winner’s Edge Trading Announces Currency Trading Contest
Casey Stubbs lanuches a forex trading contest that begins on February 1st. The competition, held during the month of February, consists of trading via demo accounts with EAs allowed. Together with Arrowfield Trading, Winner’s Edge Trading is providing an interesting contest. Here are more details in the official press release: Jan 12, 2012 – Winner’s Edge Trading-Beginning … “Winner’s Edge Trading Announces Currency Trading Contest”
Yen Fluctuates Ahead of US Reports, Looks Down
The Japanese yen fluctuated, demonstrating a downside bias, as today’s reports from the United States are expected to be mixed. The yen slid versus the euro today on signs of stabilizing economic situation in Europe. On the negative side for the yen, Michigan Sentiment Index is expected to rise from 69.9 to 71.2 this month. On the positive side, growth of import prices is predicted to stall in December. Yesterday’s reports were worse than expected, adding … “Yen Fluctuates Ahead of US Reports, Looks Down”
Canada’s Dollar Weaker Than Euro
The Canadian dollar slumped against the euro yesterday as comments of European Central Bank President Mario Draghi boosted the shared European currency, while US retail sales were below forecast. Canada’s currency was flat against the US dollar. US retail sales (seasonally adjusted) rose just barely by 0.1 percent in December, according to an advance estimate, following the 0.4 percent growth in November. The median forecast was 0.3 percent. … “Canada’s Dollar Weaker Than Euro”
Pound Drops on Easing Speculations, BoE Keeps Policy Unchanged
The Great Britain pound fluctuated against the US dollar and slumped versus the euro today on speculations that the UK central bank will boosts its asset purchase program. The bank left the program and its main interest rates unchanged today. The Bank of England decided to keep its official Bank Rate unchanged at 0.5 percent and maintained the asset purchase facility at £275 billion. Such move was predicted by analysts, but that … “Pound Drops on Easing Speculations, BoE Keeps Policy Unchanged”
Aussie Struggles Higher against US Dollar
Aussie is struggling higher against the US dollar today, working to regain some of the losses due to the latest Chinese inflation report. Aussie is running into some trouble, though, as Forex traders move between risk appetite and risk aversion. Conflicting signals are the order of the day. Australian dollar is heavily influenced by China, one of its major trading partners. The announcement that Chinese inflation was higher than … “Aussie Struggles Higher against US Dollar”
Euro Jumps as ECB Sees Stabilization
The euro climbed today, erasing its yesterday’s losses versus the US dollar and the Japanese yen, after the European Central Bank left the main interest rate unchanged and ECB President said he sees signs that the European economy is stabilizing. Europe’s central bank kept its minimum bid rate at 1.0 percent as was expected by economists. Mario Draghi, President of the ECB, said at the press-conference after the decision: As expected, ongoing … “Euro Jumps as ECB Sees Stabilization”