The US dollar advanced today on fears of the worsening crisis in Europe that drove investors to safer currencies and the dollar in particular as the US economy continue to show signs of recovery. Traders are worried by decline of Italy’s economy and speculation that Spain may be the next country to ask for a bailout. There was no major news from Europe recently, and that is not good as without a significant positive event the situation in the eurozone would … “Dollar Gains on Negative Risk Sentiment & Good US Fundamentals”
Month: May 2012
Euro Falls as Eurobond Debate Begins
Euro is dropping today as eurozone leaders meet to discuss growth options for the 17-nation currency zone. Eurozone growth has been sluggish, verging on recession, and that is impacting the ability of member states to handle their sovereign debt. One of the options being floated as part of a package is a eurobond. However, Germany is opposed to such a measure. Euro is heading lower today, mostly due to uncertainty. There is uncertainty … “Euro Falls as Eurobond Debate Begins”
Pound Falls as CPI & HPI Drop
The Great Britain pound fell against the US dollar today after reports showed that inflation slowed and house prices unexpectedly declined, adding incentive for the Bank of England to stimulate the economy. The currency advanced against the euro after four days of losses. The consumer price index was 3.0 percent in April on an annual basis, down from 3.5 percent in the month before. The house price index fell 0.4 percent in March from … “Pound Falls as CPI & HPI Drop”
Canadian Dollar Drops Against US Dollar on Risk Aversion
Risk aversion is the Forex market driver today, thanks to the Fitch downgrade of Japan. Even though equities aren’t being much affected by the latest news, currencies are. High beta currencies like the Canadian dollar are dropping, thanks to a desire for safe haven. Loonie is headed lower against the US dollar today, even though its own credit rating is remains solid. Canada retains the highest credit … “Canadian Dollar Drops Against US Dollar on Risk Aversion”
Yen Slides as Fitch Downgrades Japan
The Japanese yen fell today as Fitch Ratings downgraded Japan’s sovereign credit rating because country’s actions to reduce public huge public debt are too slow. Fitch cut Japanâs long-term foreign-currency rating from AA to A+ and lowered the local-currency grade from to AA- A+. The outlooks on both rankings are negative. Some financial specialists recommended buying the yen against the dollar. They are reasoning that the yen … “Yen Slides as Fitch Downgrades Japan”
USD/CAD: Trading the US New Home Sales
USD/CAD: Trading the US New Home Sales The US New Home Sales report is a leading indicator for measuring activity in the housing sector, a critical component of the economy. A higher reading than the market forecast is bullish for the US dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Wednesday … “USD/CAD: Trading the US New Home Sales”
German Inflation – A Substitute to an ECB Rate Cut
An important metal workers’ union in Germany signed a 13 month deal for a wage increase of 4.3%. This is a benchmark for other unions and also joins other agreements that surpass German inflation and the ECB’s target. This is certainly a “second round effect” which the ECB is afraid of, and so far avoided. … “German Inflation – A Substitute to an ECB Rate Cut”
Mexican Peso Profits from Promise of Faster Growth in China
The Mexican peso advanced today as China pledged to boost its economic growth, reducing the negative impact of the crisis in Europe and increasing demand for riskier currencies with higher yield. Chinese Premier Wen Jiabao promised to accelerate economic growth in China and that pledge improved market sentiment somewhat, benefiting currencies of emerging economies. China remains one of the few sources of good news nowadays. The United States is another, although optimism … “Mexican Peso Profits from Promise of Faster Growth in China”
Yuan Gains as Wen Promises to Boost Growth, Retreats
The Chinese yuan gained today, before retreating below opening level, after the central bank set the reference rate higher and the head of China said that the government will take measures to boost economic growth of the country. Chinese Premier Wen Jiabao said that he would give “more priority to maintaining growth” to support the economy that is showing signs of slowdown. The Peopleâs Bank of China raised the fixing by 0.15 percent … “Yuan Gains as Wen Promises to Boost Growth, Retreats”
Euro Struggles in Forex Trading
Once again, the euro is struggling in Forex trading. It isn’t much of a surprise, really, since the eurozone is still operating in debt crisis mode. Since last week, not much has changed. Greece is still on the verge of withdrawal from the 17-nation currency region, and Spain and Italy continue to teeter on the edge of their own full-blown crises. Even the promise of a growth agenda in the eurozone can’t help the euro. Indeed, reports … “Euro Struggles in Forex Trading”