The Great Britain pound fell against the US dollar and pared its gains versus the Japanese yen after the UK Office for National Statistics reported that the nation’s GDP shrank in the last quarter, adding to signs than Britain is entering recession. Britain’s gross domestic product contracted 0.2 percent in the fourth quarter of 2011, following the expansion by 0.6 percent in the preceding quarter. Other economic indicators were actually good, but … “Pound Drops as UK GDP Declines”
Month: January 2012
Thai Central Bank Cut Interest Rates, Baht Weaker
The Thai baht fell today after the nation’s central bank reduced its key interest rate in an attempt to spur economic growth that has slowed last year because of the biggest floods in almost 70 years. The Bank of Thailand reduced its main interest rate by 0.25 percent to 3.00 percent today. Last year’s floods resulted in closing of more than 16,000 factories, hurting economic growth. Thailand’s economy expanded … “Thai Central Bank Cut Interest Rates, Baht Weaker”
Robust US Recovery to Keep Fed Doves Low
The composition of the Federal Reserve has undoubtedly changed in favor of the doves. However, the strong recovery in the US, and the already loose monetary policy will likely remain unchanged. David Song of DailyFX discusses the Fed, China’s landing, Spain’s edge over Italy, Britain’s safe haven status and one currency which still has a … “Robust US Recovery to Keep Fed Doves Low”
AUD Rises Even as Inflation Stalls, Reaches Record vs. JPY
The Australian dollar strengthened today even after a report showed that nation’s consumer price inflation stalled in the fourth quarter of 2011. The currency reached a record high since November against the yen as Japan’s trade deficit widened. Australia’s consumer price index remained unchanged in the December quarter after rising 0.6 percent in the previous three months. Analysts expected a 0.2 percent growth. The trimmed mean CPI (core inflation that … “AUD Rises Even as Inflation Stalls, Reaches Record vs. JPY”
Canada’s Dollar Weakens as Growth of Retail Sales Slows
The Canadian dollar fell against its US counterpart today after Canadian retail sales slowed, hinting that Canada’s economy has problems that may slow economic growth. The currency was higher versus the yen. Canada’s retail sales increased 0.3 percent in November, exactly as forecaster predicted. The growth was three times lower than the October advance by 0.9 percent. The slowdown of sales made economists speculate about … “Canada’s Dollar Weakens as Growth of Retail Sales Slows”
US Dollar Mixed as Traders Look for Direction
Forex traders are looking for a little direction today, and, as a result, the US dollar is mixed. Greenback is higher against the euro, thanks to fresh concerns about the Greek debt situation, but lower against the Great Britain pound. With Fed heading into a two-day meeting, many are waiting to see what policy announcements will be made. The members of the Federal Open Market Committee of the Federal Reserve are … “US Dollar Mixed as Traders Look for Direction”
American Reverse Decoupling
The US managed to continue growing throughout 2011 while the rest of the world slowed down. The 2008 financial crisis gave birth to the “decoupling” theory where China continued growing rapidly while the West was sinking. Indeed, while China and other Asian countries were slowing down during the end of 2011, and while Europe most … “American Reverse Decoupling”
Euro Lower as Greece Causes Trouble — Again
Greece faded from the spotlight for a little while, but the erstwhile country is back on center stage as debt talks once again look to be on the verge of collapse. As a result of uncertainty in Greece, and due to other issues in the eurozone, it is little surprise that the euro’s recent rally has lost momentum. Euro is lower today as risk aversion takes the place of yesterday’s risk appetite. Concerns about Greece are intensifying … “Euro Lower as Greece Causes Trouble — Again”
FXCM Announces Faster MT4 Offering
US forex broker FXCM launches a new version of its MetaTrader 4 offering. The new version eliminates third party bridge software, thus enabling faster execution and it claims that traders coming from other brokers will see a big difference. The new offering came after FXCM saw the high demand for this platform. FXCM enables EAs, … “FXCM Announces Faster MT4 Offering”
Waning Optimism on Forex Market Weakens Rand
The South African rand fell today as talks among Greece and private bondholders no longer cause optimism among investors, but rather make them concerned. Worsening market sentiment has a negative impact on assets of emerging economies. Talks among Greece and creditors may end in a stalemate as bondholders demand 4 percent yield, while the country strives for less than 3.5 percent interest rates. The discussion let economists believe … “Waning Optimism on Forex Market Weakens Rand”