The Japanese yen declined today after positive data about European manufacturing and service industries reduced demand for safety of Japan’s currency. The flash eurozone manufacturing PMI rose from 46.9 to 48.7 and the flash eurozone services PMI advanced from 48.8 to 50.5 in January from December. German manufacturing and services, as well as French services, also expanded, while French manufacturing declined. Losses of the yen versus the euro were limited as a disagreement … “Yen Goes Down as European Manufacturing & Services Improve”
Month: January 2012
Indian Rupee Rises. Gains Unsustainable?
The Indian rupee strengthened today after the Indian central bank kept its key interest rate unchanged in an effort to support the nation’s economy and the currency, but outlook for the rupee remained bearish. The Reserve Bank of India maintained its benchmark repo rate at 8.5 percent, a move anticipated by market analysts. The cash reserve ratio for banks was reduced from 6.0 per cent to 5.5 percent. Economists considered this decision as monetary … “Indian Rupee Rises. Gains Unsustainable?”
Pound Reverses Gains
The Great Britain pound reversed its yesterday’s upward trend against the US dollar and the Japanese yen today and stayed flat versus the euro after tumbling on the last trading session as analysts expect a report later this week to show that the UK economy is slowing. Experts predict that data would show UK gross domestic product fell 0.1 percent in the fourth quarter after rising 0.6 percent in the third … “Pound Reverses Gains”
GBP/USD: Trading the British GDP January 2012
The Gross Domestic Product (GDP) indicator measures the production and growth of the economy. Analysts consider GDP one of the most important economic indicators, thus the publication of the British GDP can have an immediate effect on GBP/USD. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator … “GBP/USD: Trading the British GDP January 2012”
QE or Not QE – Doves to Fly Low
Voices for a third round of Quantitative Easing have been heard since QE2 ended in June 2011. This process, in which the central banks prints money, had a critical impact on currencies: the dollar dropped during the QE2 period and rose after it expired. This was a choppy process but a very evident one. Buying … “QE or Not QE – Doves to Fly Low”
Loonie Heads Higher as Oil Prices Rise
Canadian dollar is heading higher against the US dollar today, gaining as oil prices rise, and as risk appetite returns to the Forex market. Loonie is gaining, in a reversal of Friday’s losses, and appears ready to enforce a degree of strength this week. As a commodity currency tied to oil, one of the helps the Canadian dollar is receiving in Forex trading today is higher oil prices. The European Union embargo of oil from Iran is … “Loonie Heads Higher as Oil Prices Rise”
US Dollar Lower on Risk Appetite
US dollar is lower today as risk appetite makes an appearance. The euro has moved back up to the 1.30 level, and the greenback is down against other currencies as well. The three-month London Interbank Offered Rate (Libor) for the US dollar fell as well. US dollar has been pulling back, heading lower as hopes for a Greek solution once again rise. Risk appetite is making an appearance as European stocks head … “US Dollar Lower on Risk Appetite”
EUR/USD Reaches Two-Week High
The euro reached the highest price in more than two weeks against the US dollar today as European financial ministers discuss measures for dealing with the region’s fiscal crisis. European officials are meeting in Brussels to discuss a Greek debt swap and new rules for preventing financial turmoil. Greece is rumored to near an agreement with private bondholders on swapping bonds to new ones with lower yield. Germany proposed to use both … “EUR/USD Reaches Two-Week High”
Aussie Reaches Two-Month High as PPI Rises
The Australian dollar jumped today to the highest level in more than two months after the report showed that the Australian Producer Price Index advanced in the last quarter of 2011. The PPI rose 0.3 percent in the fourth quarter after increasing 0.6 percent in the previous three months. The rise of the index was caused mainly by advancing prices for manufactured goods, while prices for agricultural commodities declined. The Australian dollar reacted positively to the report, rising … “Aussie Reaches Two-Month High as PPI Rises”
UK 2012: Investors Pay to Lend to Government While Total
The UK joined the exclusive club of countries that are able to raise money at negative interest rates. On the other hand, the deleveraging process has skipped this country, despite all the austerity. There are 4 explanations for this discrepancy. How long can it last? Britain recently raised 700 million pounds in the markets. The … “UK 2012: Investors Pay to Lend to Government While Total”