The Australian dollar was rising in the first half of the week, reversed its decline in the second half, but wasn’t able to completely erase its losses and ended the week with closing price below the opening level. The beginning of this week was bad for the Australian currency (often nicknamed Aussie). Concerns about the Greek bond swap were erasing demand for riskier assets. The decline of the eurozone economy and China’s downwardly revised growth target … “Weekly Losses of AUD Caused by Bad Fundamentals in Australia”
Month: March 2012
Norwegian Krone Falls on Trader Minister’s Comments
The Norwegian krone slumped after the country’s trade minister said that the strong currency is hurting Norway’s exporters, causing traders to speculate about possible intervention. Trond Giske, Norway’s Minister of Trade and Industry, said: It is our concern because the export industries are hurting from the strong krone. We are following the situation closely. Giske also added: Those exporters that are both hurting from … “Norwegian Krone Falls on Trader Minister’s Comments”
GBP/USD Falls After Greek Bondholders Suffer Losses
The Great Britain pound slipped versus the US dollar as investors shunned European assets after private holders of Greek debt suffered losses on Greece’s bonds. The currency was still up against the euro and the Japanese yen. Greece used collective action clauses to increase participation of investors in the bond swap program. As a result, the International Swaps & Derivatives Association announced that “a Restructuring Credit Event has occurred with respect to The Hellenic … “GBP/USD Falls After Greek Bondholders Suffer Losses”
NFP Reaction in EUR/USD and Similarity to Dec ’09
A quick look into the NFP numbers from December 2009 revels an interesting pattern. At that time expectation was for loss 120K jobs but number came out a loss only of 11K. This result was far better than expected and euro fell sharply while stocks rallied. This is the same reaction that we see today. … “NFP Reaction in EUR/USD and Similarity to Dec ’09”
Japanese Yen Remains Mostly Weaker
Japanese yen remains mostly weaker against other currencies today. Japan’s government continues to pressure the Bank of Japan to do what it can to encourage an economic recovery. However, with the yen mostly weaker, especially against the US dollar, the BOJ is unlikely to make any startling policy changes anytime soon. Last month, the BOJ introduced surprise easing with the intent to keep the yen weaker and promote a favorable export … “Japanese Yen Remains Mostly Weaker”
US Dollar Rises as Quantitative Easing Becomes Less Likely
US dollar is rising today, gaining as improved economic data provides support. With the latest non-farm payrolls report, it appears that the economy is recovering sufficiently that the Federal Reserve is unlikely to institute another round of quantitative easing to stimulate the economy. The news is giving the US dollar the upper hand right now. For February, non-farm payrolls increased by 227,000. This followed an increase in January, and was marked … “US Dollar Rises as Quantitative Easing Becomes Less Likely”
Swiss Franc Jumps vs. Dollar & Yen
The Swiss franc jumped today against the US dollar and the Japanese yen as positive market sentiment diminished attractiveness of the currencies of Japan and the United States. Sometimes, the Swiss franc tends to behave more like risky currency, not like a safe one, since it was pegged to the euro. Today’s positive sentiment made the euro to rise and that, in turn, allowed the franc to rally. The optimistic outlook for the Greek bond swap and sings of robust growth … “Swiss Franc Jumps vs. Dollar & Yen”
Canadian Dollar Jumps as BoC Maintains Rate, Sees Signs of Stabilization
The Canadian dollar advanced today versus the US dollar and the Japanese yen, rising for the second day, after the Canada’s central bank maintained its overnight rate at the previous level. The currency was down against the euro. The Bank of Canada kept its target interest rate at 1 percent, a decision expected by analysts. The BoC is just one of many banks that maintained their monetary policy and it may be considered a sign … “Canadian Dollar Jumps as BoC Maintains Rate, Sees Signs of Stabilization”
ECB News Helps Euro in Forex Trading
The European Central Bank announced that it will keep its benchmark interest rate at 1% today. On top of that, the ECB unexpectedly announced that it is raising the inflation projection for the eurozone. The news has been greeted with optimism about the 17-currency region, and the euro is gaining against the US dollar and other major currencies. Previously, the ECB had expected eurozone growth for 2012 to be between -0.4 percent … “ECB News Helps Euro in Forex Trading”
UK Pound Gains against the US Dollar
The UK pound is rising against the US dollar, enjoying gains not seen for more than a week. The latest interest rate decision by the Bank of England is to keep it the same. Additionally, the Bank of England is going to keep its debt-purchase program on hold for now. The news that the Bank of England doesn’t feel it needs to continue with its quantitative easing program is welcome to many Forex traders, and is … “UK Pound Gains against the US Dollar”