The euro fell today as Spanish borrowing costs rose, but the European Central Bank signaled that it’s not going to buy nation’s debt, spurring talks that the debt crisis may spread to Spain. The yield on 10-year Spanish sovereign bond climbed 18 basis points, or 0.18 percentage point, to 6 percent. The cost of insuring against a default in Spain jumped to a record. Klaas Knot, a member of the ECB governing council, said … “Euro Down as ECB Doesn’t Want to Buy Spain’s Debt”
Month: April 2012
Rand Slips as China’s Economic Growth Slows
The South African rand slid today after the government report showed that China’s economic growth slowed in the first quarter of this year more than market participants expected. Chinese gross domestic product grew 8.1 percent in the first quarter of 2012 from a year ago. That’s compared to the 8.9 percent increase in the previous quarter and market expectation of 8.4 percent growth. The Standard & Poorâs GSCI Index declined 0.4 … “Rand Slips as China’s Economic Growth Slows”
Will the Great Britain Pound Strengthen Further?
Great Britain pound is showing weakness against the US dollar right now, but it is higher against the euro — and many think that the pound is likely to continue making gains against the the 17-nation currency in the near future. Sterling is struggling against the US dollar, along with other high beta currencies today. Risk appetite is hard to come by with the latest news out of China … “Will the Great Britain Pound Strengthen Further?”
Won Gains as North Korean Rocket Launch Fails
The South Korean won rose today after North Korean rocket launch failed, easing tensions in the region. The overall positive mood on the Forex market also benefited the currency. South Korean politicians were concerned that the rocket launch was a part of nuclear weapon tests and threatened the country. North Korean claimed that the rocket wasn’t nuclear weapon and carried a satellite as a part of celebration for the centennial of state founder Kim Il Sung. … “Won Gains as North Korean Rocket Launch Fails”
Dollar Index Rises as Risk Appetite Fades on China
It’s been a wild couple of days in the financial markets, with risk appetite returning to some extent and riskier assets favored. Now, though, risk appetite is fading and the US dollar is gaining ground against other majors as disappointing news from China spurs the search for a safe haven. The US dollar index is on the rise again, heading higher as risk aversion rises. Chinese growth appears to be slowing, and that … “Dollar Index Rises as Risk Appetite Fades on China”
Loonie Follows Aussie in Advance
The Canadian dollar jumped yesterday and so far has kept its gains today as stocks and commodities advanced on speculation that the Federal Reserve will maintain its interest rates record low for prolonged time. The Canadian dollar followed the Australian dollar that jumped on very good employment data, dragging commodities and commodity-related assets along. Signs that the Fed is going to maintain its stimulating monetary policy are also … “Loonie Follows Aussie in Advance”
Australia’s Employment Shows Huge Growth, AUD Surges
The Australian dollar jumped today as employment in Australia demonstrated surprisingly huge growth that was about seven times above forecasts, causing speculation that the nation’s central bank will refrain from an interest rate cut. The Australian Bureau of Statistics reported that the seasonally adjusted number of employed persons rose by 44,000 in March from February. That’s compared to the much smaller figure of 6,400 predicted by analysts. Australian employment decreased … “Australia’s Employment Shows Huge Growth, AUD Surges”
Euro Rises In Spite of New Concerns
Euro is gaining today, even though concerns remain about Spain and other countries in the eurozone with high amounts of sovereign debt. Continued worries about the eurozone are not enough to keep the euro down as Forex traders show disappointment with US dollar policy. Recently, gains for the US economy have led some Forex traders to speculate that the Federal Reserve would move up its timetable for interest … “Euro Rises In Spite of New Concerns”
Fed Buys 61% of US Treasuries in 2011, with QE2
QE2 in the size of $600 billion was announced in November 2010 and was completed at the end of June 2011 – in the middle of the year. Looking at the annual figures, the Fed bought 61% of all debt. Buying more than 50% of US debt in 50% of the time smells a bit … “Fed Buys 61% of US Treasuries in 2011, with QE2”
Swiss Franc Gains, SNB Ready to Maintain Ceiling
The Swiss franc rose today against the US dollar, following gains of the euro. The currency fluctuated against the euro, staying near the cap, but not breaking it. The Swiss National Bank capped the franc at 1.20 per euro last year and the currency has breached the ceiling only once on April 5. Central bank’s interim chief Thomas Jordan assured that the SNB is ready to buy foreign currency in unlimited quantities … “Swiss Franc Gains, SNB Ready to Maintain Ceiling”