The Great Britain pound rose today as macroeconomic data showed that both input and output Producer Price Index rose in January more than was predicted by analysts. Both input and output PPI increased 0.5 percent in January. That’s a good result compared to forecast 0.4 percent for input and 0.1 percent for output. The data looks even better considering the output PPI fell 0.2 percent, while the input PPI dropped … “Pound Goes Higher as PPI Grows”
Month: February 2012
Lira Falls as Bailout for Greece Postponed
The Turkish lira fell today as demand for riskier currencies with higher yield was deterred after the European Union held back the next portion of bailout for Greece. EU leaders, who were frustrated by political infightings in Greece, postponed the planned â¬130 billion rescue for the indebted country until the proposed austerity measure would be implemented. The lira is still up 7.2 percent versus the dollar this year. The gains were … “Lira Falls as Bailout for Greece Postponed”
Aussie Declines After RBA Releases Monetary Policy Statement
The Australian dollar fell today after the Reserve Bank of Australia released its Monetary Policy Statement, reducing its growth forecast for this year and indicating that it’s ready to ease monetary policy. The Australian central bank said in its statement: Largely reflecting developments in Europe, official forecasts for global growth have been revised lower, with growth in the world economy now expected to be below trend in 2012, but … “Aussie Declines After RBA Releases Monetary Policy Statement”
Rand Falls as Manufacturing Deteriorates
The South African rand declined today as nation’s factory output slowed and before President Jacob Zuma will address lawmakers in his speech in Cape Town today. Manufacturing, which accounts for 15 percent of South Africa’s gross domestic product, rose 2.4 percent on an annual basis in December. That’s below the November reading of 2.8 percent and analysts’ forecast of 2.6 percent. Manufacturing output of Africa’s biggest economy was hurt by the crisis … “Rand Falls as Manufacturing Deteriorates”
Japanese Yen Drops on Excitement over Greek Debt Deal
Japanese yen is dropping today as Forex traders become excited over the Greek debt deal. Yen is falling as risk appetite rises and low beta currencies find themselves out of favor. This is good news for Japanese leaders, who prefer to see a weak yen. Greek leaders have agreed to austerity measures that allow a bailout from the ECB and IMF. The news has risk appetite soaring — … “Japanese Yen Drops on Excitement over Greek Debt Deal”
ECB Monetary Decision & Greek Agreement Lift Euro
The euro rose today after the European Central Bank maintained its interest rates and Greek leaders managed to reach an accord regarding austerity measures that are required to get the next round of rescue. The ECB left its benchmark interest rate at 1 percent at a monetary policy meeting today. Mario Draghi, President of the ECB, said in the statement after the meeting that there are “some tentative signs of a stabilisation in economic activity … “ECB Monetary Decision & Greek Agreement Lift Euro”
Central Banks Summary (Video)
The dust settled after Draghi’s confident press conference and the expanded QE in the UK. We now see the dollar regaining some of its losses. Where are markets headed? Michael Derks of FxPro summarizes the central banks action seen earlier (and other topics) in the day in the video below. You can follow more commentary … “Central Banks Summary (Video)”
US Dollar Drops as Risk Appetite Returns on Greek Deal
US dollar index is lower today, heading down on risk appetite. A Greek debt deal is helping the situation, and Forex traders and investors in various financial markets are feeling better about taking a few more risks in order to invest in higher yielding assets. Mario Draghi, the president of the European Central Bank confirmed earlier that Greek policymakers, led by Prime Minister Lucas Papademos, have agreed to an austerity package. … “US Dollar Drops as Risk Appetite Returns on Greek Deal”
Pound Keeps Gains After BoE Boosts Asset Purchases
The Great Britain pound gained today and remained strong after the Bank of England kept its main interest rate unchanged and boosted the asset purchase program as the UK economy continued to weaken. The BoE kept its key interest rate at 0.5 percent, but increased its program of asset purchases by £50 billion to a total of £325 billion. The Bank said in the statement after the monetary decision: In the United Kingdom, the underlying pace of recovery slowed … “Pound Keeps Gains After BoE Boosts Asset Purchases”
EUR/USD: Trading the UoM Consumer Sentiment February 2012
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and can help strengthen the US dollar. As well, a reading which is higher than the market forecast is bullish for the greenback. Here … “EUR/USD: Trading the UoM Consumer Sentiment February 2012”