Yesterday’s enthusiasm has largely disappeared and risk aversion is back in fashion on the Forex market. US dollar is gaining against high beta currencies today as attention turns back to the troubles in Europe. US dollar is being sought as a safe haven today as Forex traders prefer the greenback to high yielding counterparts. The euro is, of course, lower due to bank troubles in the region. ECB is lending to banks in high amounts, … “US Dollar Gains as Risk Aversion Returns”
Month: January 2012
Euro Retreats as Inflation Slows
The euro pared its yesterday’s gains today after the preliminary report showed that inflation in the eurozone slowed and the outcome of the German debt auction wasn’t very good. Eurozone annual inflation is expected to be 2.8 percent in December 2011 according to the flash estimate issued by Eurostat (the statistical office of the European Union). Demand for German 10-year bonds was lower than the average for the last five years. Economists are concerned that … “Euro Retreats as Inflation Slows”
EUR/USD Back Below 1.30
Euro is lower again today, dropping as concerns about what’s next in the European banking saga weigh on investors and Forex traders. EUR/USD is back below the 1.30 level, falling as concerns about the eurozone dominate. Bank lending from the ECB continues to be the story in Europe. Concerns about UniCredit SA are underscoring the capital needs of many eurozone banks. As a result, there are worries that a banking crisis is … “EUR/USD Back Below 1.30”
Forint Drops to Almost Three-Year Low
The Hungarian forint sank today to the lowest level in almost three years on concerns that Hungary won’t receive a bailout from the European Union and the International Monetary Fund in the near future. Some economists predict that Hungary would receive rescue only in the second half of 2012, if not later. The country desperately needs help as it’s the most indebted economy of the Eastern EU. Earlier, Standard & Poor’s and Moody’s Investor Service … “Forint Drops to Almost Three-Year Low”
AUD/USD: Trading the Australian Trade Balance
Australian Trade Balance measures the change in the value of goods and services which are exported and imported every month. This indicator is particularly important for currency traders, as foreigners need to purchase Australian dollars in order to purchase Australian exports. A reading that is higher than the market forecast is bullish for the aussie. Here are all the details, and 5 possible outcomes for … “AUD/USD: Trading the Australian Trade Balance”
Rand Advances as Forex Traders Express Optimism
The South African rand advanced yesterday on the positive mood among Forex traders, though the currency lost part of its gains later. The rand held steady today. The optimism was felt across all markets yesterday and currencies of emerging economies benefited from it. The MSCI Emerging Markets Index climbed 1.8 percent. South Africaâs benchmark stock index (JALSH) reached the highest level in more than a month. The Standard & … “Rand Advances as Forex Traders Express Optimism”
NZD Jumps as Positive PMI Figures Spark Optimism on FX Market
The New Zealand dollar surged today as the positive reports about China’s and US manufacturing made more attractive currencies related to growth, the New Zealand one among them. The US Purchasing Managers’ Index increased from 52.7 to 53.9 in December, showing a 29th straight month of manufacturing expansion. Both the Standard & Poorâs 500 Index of shares and the MSCI World Index climbed as much as 1.8 percent today. All in all, today’s … “NZD Jumps as Positive PMI Figures Spark Optimism on FX Market”
Canadian Dollar Rises as Commodities Jump
Canadian dollar is higher as commodities see a sharp jump in prices. The latest ISM data in the United States is helping matters, especially for the loonie, but the manufacturing expansion in China and Australia is also helping quite a bit. With economic data improving for the United States and for other countries, optimism is running high. That means that commodity prices are improving and commodity currencies, like the loonie, are getting a boost. … “Canadian Dollar Rises as Commodities Jump”
Euro Higher, Even as Bank Lending from ECB Continues
Euro is higher today, gaining even though banks are still making high demands on the ECB’s marginal lending facility. A total of 14.8 billion euros were borrowed on Monday night. This wasn’t as much as borrowed last Thursday night, but it indicates that banks are still demanding emergency money from the ECB. Even so, the euro is higher today against most other major currencies. … “Euro Higher, Even as Bank Lending from ECB Continues”
Canadian Housing Bubble to Burst in 2012?
Canada has weathered the financial crisis quite well, especially in comparison with its southern neighbor. Perhaps it has been even too successful when it comes to house prices. After Australia’s prices began sliding, is Canada the next market to drop? Some fear that prices are bloated beyond the peak seen in the US. Canada enjoys various … “Canadian Housing Bubble to Burst in 2012?”