The euro erased its yesterday’s gains against the US dollar and was flat today as Greece struggles to reach an agreement with creditors on a debt reduction. The currency fell versus the Japanese yen yesterday and continued to fall today. The earlier discussion between Greece and its creditors ended in a stalemate. Some officials said that talks are progressing better this time, but investors are cautious to be overly optimistic about an outcome … “Euro Weakens as Greece Argues with Creditors”
Month: January 2012
UK Pound Gains Against US Dollar, But Drops Against Euro
UK pound is higher against the US dollar today, gaining as other currencies, in general, are preferred to the greenback. However, the UK pound is down against the euro, as well as down against commodity currencies today. Against the US dollar, the UK pound is heading higher, supported by a general tendency toward risk appetite. Stocks are higher, and that provides support for the sterling, and the US dollar is generally out of favor … “UK Pound Gains Against US Dollar, But Drops Against Euro”
European Cliff Hanger – Greece
Europe certainly remains in the limelight during Q1 2012. The Greek debt crisis began at the end of 2009 and has spread to other countries. Apart from countries, European banks are also on the edge. Nothing is secure and trust is hard to find. How long can this leg dragging continue? Perhaps we will see … “European Cliff Hanger – Greece”
Australian Dollar Gains on Risk Appetite
Australian dollar is gaining almost across the board today as risk appetite returns the Forex market. Some are interested in the idea that the news Federal Reserve won’t raise interest rates until 2014, and others assume that the Fed will increase bond purchases in the hopes that it can further stimulate the US economy, especially the labor market. Also helping the Aussie: News that Russia will start using … “Australian Dollar Gains on Risk Appetite”
EUR/USD:Trading the US GDP
The United States GDP, released quarterly, is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity, and a reading which is better than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at … “EUR/USD:Trading the US GDP”
CAD Jumps to Highest Since November as Fed Keeps Rates Low
The Canadian dollar rallied yesterday and reached the highest since November today versus the US dollar and the Japanese yen as the Federal Reserve plans to keep interest rates exceptionally low till at least late 2014. The Federal Market Open Committee kept its main federal fund rate near zero yesterday. What’s more important, it extended its pledge to keep rates low till late 2014 (previously the FOMC pledged … “CAD Jumps to Highest Since November as Fed Keeps Rates Low”
US Primaries Season and the Dollar
The United States entered an election year. I’ll try to keep the debate focused on the impact on the economy and the dollar, without diving too deep into American politics. The question for the dollar is the level of uncertainty. If the picture will clear up, this will help the dollar, while high uncertainty will … “US Primaries Season and the Dollar”
Greenback Gains as Risk Aversion Rises
Greenback is gaining today on the Forex market as risk aversion rises. Uncertainty over what’s next for Greece, and how it will affect the eurozone, is pressuring the euro and helping the US dollar. Additionally, many Forex traders and investors are waiting for the latest policy announcement from the Federal Open Market Committee. One of the areas of speculation and interest today is what the FOMC will announce regarding interest rate policy, as well … “Greenback Gains as Risk Aversion Rises”
Euro: Good News Out of Germany, But All Eyes are on Greece
German business sentiment beat expectations for a third month in a row, but the good news has been overwhelmed by disappointment over developments in Greece. The latest in the Greek debt saga has Forex traders worried about what’s next, and that is dragging the euro lower, in spite of other news that is favorable to risk appetite. Indeed, many think that, under normal circumstances, the euro should be improving. Apple earnings … “Euro: Good News Out of Germany, But All Eyes are on Greece”
USD/JPY: Trading US New Home Sales
The New Home Sales Report is released towards the end of every month. A leading economic indicator, it is considered by analysts as an important measure of consumer spending. A higher reading than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for JPY/USD. Published on Thursday at 15:00 GMT. Indicator Background … “USD/JPY: Trading US New Home Sales”