At the beginning of the year, the US economy seemed on track for a strong recovery. Since then, some worrying signs have emerged and the picture is more complex. Here is a review of the good and bad indicators. towards the FOMC meeting on April 25th: The Good Growth continues: The US economy is still growing … “US Economy: The Good and the Bad Before the FOMC Meeting”
Month: April 2012
Australian Dollar Sinks on Falling PPI
The Australian dollar slumped today as the unexpected decline of producer prices in the first quarter of this year led to speculation that Australia’s central bank will decrease its interest rates on the next monetary policy meeting. The government report showed today that Australia’s Producer Price Index fell 0.3 percent in the first quarter of 2012 from the previous three months. The report frustrated analysts who anticipated the index to accelerate from 0.3 … “Australian Dollar Sinks on Falling PPI”
Euro Down on PMI, Concerns About French Elections
The euro was down today on concerns about the outcome of the presidential elections in France. The report that showed the manufacturing index falling to the lowest level in almost three years also had its negative impact on the currency. Socialist Francois Hollande won the first round of elections, while incumbent President Nicolas Sarkozy was the second. The anti-euro far-right National Front, led by Marine Le Pen, was third, showing that resentment against … “Euro Down on PMI, Concerns About French Elections”
AUD/USD: Trading the Australian CPI Apr 2012
The Australian CPI (Consumer Price Index), which is released each quarter, is an inflation index which measures the change in the price of goods and services charged to consumers. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published … “AUD/USD: Trading the Australian CPI Apr 2012”
LXRisk Risk Management Platform Launched by Leverate
Leverate, which provides software solutions for forex brokers, launched a new risk management tool. The new tool enables brokers to view positions which are covered with those that aren’t, and also to view strategies of certain traders and to classify them to specific groups. In January, Leverate released a scalper protection tool for brokers. The … “LXRisk Risk Management Platform Launched by Leverate”
French Presidential Elections and the Euro
Europe’s second largest economy is facing the first round of presidential elections on April 22nd. Incumbent Nicolas Sarkozy and the main opposition leader Françios Hollande are expected to emerge as the candidates for the second round, held on May 6th. Update: According to data leaked to French bloggers, Hollande got 28-29% of votes while Sarkozy got … “French Presidential Elections and the Euro”
GBP/USD: Back To Bullish Mode Above 1.6 (Elliott Wave)
Despite some weakness seen in the pound for more than a week back from 1.6060 level, the pair was unable to break beneath the support channel line that is connected from the January low. In fact, this line caused a strong buying into a new high seen in the past week, which we now believe … “GBP/USD: Back To Bullish Mode Above 1.6 (Elliott Wave)”
US Dollar Pulls Back as Risk Appetite Returns
Risk appetite is making a comeback in the markets today, and that is sending the US dollar mostly lower. The dollar index is losing ground, and the greenback is lower against many of the majors, especially the European currencies. With better earnings news out of the United States, and with better news in the eurozone, Forex traders are ready for a little risk. US dollar is pulling back as Forex traders look for better returns, … “US Dollar Pulls Back as Risk Appetite Returns”
Aussie Mostly Soft as Week Draws to a Close
Australian dollar is mostly softer as the week draws to a close. Aussie has been weakened this week by risk aversion and concerns about what’s happening in the eurozone. Also, recently, the news out of China has been somewhat disappointing, and that has been weighing on the Aussie as well, since the Chinese economy is a major support to the Australian economy. Aussie is higher against the US dollar today, gaining as a measure of risk appetite … “Aussie Mostly Soft as Week Draws to a Close”
UK Pound Gains as BOE Prepares to Wind Down Stimulus
UK pound is seeing gains again today, heading to highs not seen for 19 months against the euro. Sterling is also up against the US dollar as Forex traders look for signs that the BOE is ready to raise rates. With no more quantitative easing in the immediate future, pound is getting a boost, even though the general market tenor is one of risk aversion. The Bank of England recently … “UK Pound Gains as BOE Prepares to Wind Down Stimulus”