The Australian dollar tumbled as the Reserve Bank of Australia revised its growth forecast for this year downwardly, spurring speculation that more interest rate cuts will follow. The RBA forecast that nation’s gross domestic product will rise 3 percent, compared to the previous estimate of 3.5 percent. Inflation growth was revised from 3 percent to 2.5 percent. The central bank wrote in its policy statement: The assumed high … “Aussie Falls as RBA Cut Growth Forecast”
Month: May 2012
Euro Drops Ahead of Elections on Weekend
The euro was falling today as elections in European countries this weekend and the next week add to uncertainty regarding the ability of the eurozone to withstand its financial crisis. Greece is the country that was most damaged by the crisis and its parliamentary elections on May 6 are very important for the well-being of the euro. As Holger Schmieding, a chief economist at Berenberg Bank, outlined: The biggest risk for markets is that in Greece we just donât get … “Euro Drops Ahead of Elections on Weekend”
Pound Gains vs. Euro Ahead of Elections in France & Greece
The Great Britain pound gained against the euro today as Forex traders were nervous before the election in Greece and France this week. The currency fell against the US dollar despite the negative fundamental data from the United States. The French will vote in the final round of the presidential elections on May 6, while Greeks will choose a new parliament. Some participants use plenty of anti-euro rhetorics in their speeches. It is likely … “Pound Gains vs. Euro Ahead of Elections in France & Greece”
Indian Rupee Falls as USA Spurs Risk Aversion
The Indian rupee fell today as unfavorable fundamentals reports from the United States caused speculations that the global economic recovery is faltering and damped demand for riskier currencies of Asian nations. Yesterday, a report from Institute for Supply Management showed a worse-than-expected decline of the service industries in the USA. Today, US non-farm payrolls were far below forecasts, confirming earlier negative data. The USA was one of the few sources of optimism for traders … “Indian Rupee Falls as USA Spurs Risk Aversion”
French Elections: Will Germany Bend for the Euro?
The runoff between incumbent president Nicolas Sarkozy and the socialist candidate Françios Hollande will be held on May 6th. All the polls point to a healthy majority for Hollande, of around 10%. His election will have implications on the euro. How will this impact the euro and how will Germany react? There’s a difference between … “French Elections: Will Germany Bend for the Euro?”
Loonie Slips after Seeing Earlier Gains
Canadian dollar is slipping today, after heading higher in earlier trading. Many currencies are fluctuating on the currency market today, thanks to the uncertainty in the markets right now. Earlier, the loonie had seen some gains as disappointing data in the United States dropped the greenback. Now, though uncertainty is weighing on the Canadian dollar. Initially, when the US nonfarm payrolls for April were released and the disappointing result was seen, the Canadian dollar … “Loonie Slips after Seeing Earlier Gains”
Japanese Yen Mixed in Forex Trading
Japanese yen is mixed in forex trading today as traders look for direction. Earlier, yen was higher against its counterparts, but now the currency seems to be pulling back — at least against the US dollar and the Great Britain pound. Yen still remains slightly higher than the euro. The financial markets continue to fluctuate between confidence and uncertainty. With some signs of economic improvement, there is a measure of confidence. … “Japanese Yen Mixed in Forex Trading”
3 Scenarios for the Greek Elections and the Euro
Greece faces its first parliamentary elections since the debt crisis erupted and are critical for the whole euro-zone. The mainstream, pro-bailout parties will be hit, but how bad? Here are three possible outcomes and their meaning for the euro. The previous elections resulted in a victory for the center left PASOK party led by George … “3 Scenarios for the Greek Elections and the Euro”
Euro Slips on Uncertainty and Economic Worries
Euro is slipping right now, following the latest data that promotes the idea that global economic uncertainty remains. Concerns about the eurozone economy are affecting the euro, but the 17-nation currency was showing resilience — until the latest economic news out of the United States. Earlier risk appetite due to cautious optimism is transforming in to risk aversion, and the euro is giving up its earlier gains against … “Euro Slips on Uncertainty and Economic Worries”
Britain’s Services PMI Down, Pound Follows
The Great Britain pound fell today against the US dollar after a report showed that the UK services index fell more than was expected by market participants. The currency was higher against the Japanese yen. The UK Services Purchasing Managers’ Index went down from 55.3 in March to 53.3 in April. The median forecast was 54.4. The data wasn’t all bad though. The value is above 50.0, indicating growth. … “Britain’s Services PMI Down, Pound Follows”