The Norwegian krone slumped against the US dollar yesterday and remained weak today as the nation’s central bank cut its key interest rate, surprising market participants and making them shun the Norwegian currency. Despite that, the krone was higher against the euro today. Norges Bank decreased its main interest rate by 25 basis points to 1.50 percent. Bank’s Governor Oeystein Olsen explained the reasons behind the cut: The continuing … “Norges Bank Unexpectedly Cuts Interest Rates, Krone Slumps”
Month: March 2012
Forex Correlations Changing (Video)
A deeper change is happening in the markets. The “risk on” / “risk off” behavior is fading away. In the video below, Simon Smith of FxPro discusses the drop in the VIX volatility index, the changing relation between high beta currencies, the dollar and stocks. The changes in behavior come on the background of the … “Forex Correlations Changing (Video)”
Loonie Lower on Greenback Strength
Canadian dollar is weaker today, heading lower as the US dollar shows strength, and as commodities fall back. Today, it’s not a lot about economic data — including trade data — and more about larger trends for the future. With expectations of a US economic recovery picking up the pace, the greenback is gaining the upper hand. Loonie is lower against the greenback today, due mostly to the fact that the US … “Loonie Lower on Greenback Strength”
Rand Tumbles on Speculation that Central Bank Buys Dollars
The South African rand slumped today after two days of gains on the speculation that the central bank bought dollars to keep the currency from appreciating further after it had reached the highest level in five months in February. Economists speculated that South Africa’s central bank was buying dollars to prevent the rand from becoming too strong and hurting the nation’s economy. The rand also fell as riskier currencies felt pressure … “Rand Tumbles on Speculation that Central Bank Buys Dollars”
Japanese Yen Retains Weakness in Forex Trading
There’s a great deal of optimism going around the financial markets right now, and that means that there isn’t much need for the Japanese yen. With good news out of the United States, and remarks from Japanese leaders indicating that more easing could be on the way, the yen is well-positioned to retain much of its weakness in Forex trading. Yen is usually seen as a safe haven currency that Forex traders … “Japanese Yen Retains Weakness in Forex Trading”
GBP Fluctuates After Jobless Claims Climb
The Great Britain pound fluctuated versus the US dollar today after a report showed that jobless claims rose last month more than was predicted. The currency was falling throughout the first half of the trading session, then rebounded and now fluctuates in a wide range. Claims for unemployment benefits rose by 7,200 jobs in February, following the 7,000 increase in January. That was the 12th consecutive increase. The median forecast was a growth … “GBP Fluctuates After Jobless Claims Climb”
USD/JPY: Trading the Philly Index March 2012
The Philadelphia Fed Manufacturing Index is an important leading indicator, and is based on a survey of manufacturers in the Philadelphia area. It examines manufacturers’ opinions of business activity, and helps provides a snapshot of the business climate and sentiment in the US. A reading which exceeds the forecast is bullish for the dollar. Here are … “USD/JPY: Trading the Philly Index March 2012”
Australian Dollar Jumps on US Economic Recovery
The Australian dollar advanced as stocks and commodities rallied after the Federal Reserve released the minutes of its monetary policy meeting, indicating that the US economy is improving. The Fed indicated that the US economy “has been expanding moderately” (previously the US central bank was saying that the recovery is proceeding with “modest” pace). Chairman Ben Bernanke didn’t mention a new round of quantitative easing, but analysts said … “Australian Dollar Jumps on US Economic Recovery”
Dollar Jumps as Fed Refrains from QE
The US dollar jumped, reaching the highest level in almost a year against the Japanese yen, after the Federal Reserve refrained from additional quantitative easing and spoke about economic recovery. The Federal Open Market Committee kept the main interest rate unchanged near zero and refrained from adding stimulus for the US economy. Moreover, the FOMC was relatively optimistic about the US economy: Information received since the Federal Open Market Committee … “Dollar Jumps as Fed Refrains from QE”
Euro Struggles as Forex Traders Wonder Who’s After Greece
Even though there is something of a “risk on” attitude in the markets today, the euro isn’t benefitting. Indeed, euro is struggling today as concerns about an economic slowdown pile on top of worries about the sovereign debt crisis. Even though the Greek situation is resolved for now, some are wondering who might be next. Indeed, the director of the International Center for Money and Banking Studies, Charles Wyplosz, is certain that … “Euro Struggles as Forex Traders Wonder Who’s After Greece”