The Australian dollar fell today on speculation that the Reserve Bank of Australia will cut its main interest rate as the European problems cause a negative impact on Australia’s economy. The RBA holds a monetary policy meeting tomorrow and is expected to cut its main interest rate to 4 percent from the current 4.25 percent. Analysts think that the previous statements of the central bank were dovish enough to show willingness of the bank to ease … “Australian Dollar Falls as Traders Anticipate Interest Rate Cut”
Month: April 2012
Canadian GDP Disappoints, Sending Loonie Lower
Canadian GDP surprised analysts and traders to the downside today, with February GDP declining 0.2%. The news came at the same time that reports of slowing consumer spending and income were reported in the United States. The combination is weighing on the Canadian dollar today, as well as on other currencies. The drop in Canadian GDP is being blamed, to some extent on oil and mining shutdowns that occurred in Canada. The result was that expectations were missed … “Canadian GDP Disappoints, Sending Loonie Lower”
US Dollar Index Recovers Somewhat as Other Majors Show Vulnerability
US dollar index is recovering somewhat today, thanks to vulnerability shown by some of the other majors today. Once again, the euro is showing a degree of weakness in forex trading, as is the pound. The yen, however, is higher against the US dollar today as a measure of risk aversion makes an appearance. A lot of what is helping the US dollar today is based around the idea that perhaps the Federal Reserve‘s recent announcement … “US Dollar Index Recovers Somewhat as Other Majors Show Vulnerability”
South Korean Manufacturers Feel Confident, Won Jumps
The South Korean won climbed today as nation’s manufacturer confidence jumped to the nine-month high and hopes for growth of the US economy boosted prospects for higher-yielding assets of emerging markets. The Bank of Korea reported that the index of South Korean manufacturers’ outlook for May climbed to 90 from 85 for April, reaching the highest level since August 2011. The index for non-manufacturing sector expectations was up from 82 to 85. The won also gained as the growing … “South Korean Manufacturers Feel Confident, Won Jumps”
USD/JPY Trading the ISM Manufacturing PMI
The ISM Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the US. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes … “USD/JPY Trading the ISM Manufacturing PMI”
Euro Slips as Spain Enters Recession
The euro fell today as Spain’s economy entered a recession, fueling concerns that the financial crisis is spreading across Europe. That was the first day of decline against the dollar after four days of gains and the third consecutive session of losses against the yen. Spain’s gross domestic product fell 0.3 percent in the first quarter from the previous three months. The economy shrank at the same rate in the fourth quarter of the previous year, meaning … “Euro Slips as Spain Enters Recession”
MahiFX Launches a Forex Community Blog
MahiFX, the New Zealand based forex broker that started operating recently, is launching a new feature on its website: a forex blog. They also issue a call for guest posts. A blog where various participants can post and comment is certainly a blessed development. Forex Crunch also encourages comments and accepts guest posts. The initial … “MahiFX Launches a Forex Community Blog”
Bank of Japan Not Able to Spoil Good Week for Yen
The Japanese yen gained this week against other major currencies and headed to the biggest monthly gain since June against the US dollar on fears of the crisis in Europe and concerns that the health of the US economy is not as good as was previously considered. The yen behaved in similar pattern against different currencies. It was rising on Monday, fell and erased most of its gains in the next two days, but surged in the last two … “Bank of Japan Not Able to Spoil Good Week for Yen”
Italy – Getting by with PR instead of Reform
Europe’s third largest economy has some advantages over Spain, but if bazookas and firewalls or even a Spanish departure could leave the euro-zone intact, troubles in Italy could deal a deadly blow to the euro-zone. Italy has a much lower ratio of private debt in comparison with its GDP. The unemployment rate is high, but … “Italy – Getting by with PR instead of Reform”
Mexican Peso Erases Losses as Bank of Mexico Doesn’t Cut Interest Rates
The Mexican peso trimmed its losses versus the US dollar today after the nation’s central bank left it key overnight interbank funding rate unchanged for the 26th consecutive meeting, disappointing traders who expected an interest rate cut. The Banco de Mexico left it main interest rate at the record low of 4.5 percent today. The Bank was keeping the target rate at this level since July 2009. Many … “Mexican Peso Erases Losses as Bank of Mexico Doesn’t Cut Interest Rates”