US dollar index is starting out another week stronger, thanks in large part to difficulties plaguing the eurozone. While the Facebook IPO last week distracted Forex traders and investors from the crisis in the eurozone for a short period of time, focus is back on Europe, and what’s happening (or not happening). Concerns about the eurozone continue to make the US dollar attractive as a safe haven. Even as concerns about Greece’s exit from the eurozone … “US Dollar Index Starts Week Stronger”
Month: May 2012
USD/JPY May 2012: Trading US Existing Home Sales
The US Existing Home Sales indicator is released monthly, and provides analysts with a snapshot of the health and direction of the housing sector. A higher reading than the market prediction is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Tuesday at 14:00 GMT. Indicator Background The Existing … “USD/JPY May 2012: Trading US Existing Home Sales”
Bad Week for Loonie in Spite of Some Good News
The Canadian dollar had a pretty bad week as talks about the European debt crisis plagued the Forex market, driving traders away from riskier commodity currencies. Fears that Greece would exit the eurozone and that the crisis is spreading to Spain hammered the loonie, as the Canadian currency is usually nicknamed. Domestic fundamentals were actually good for the currency. Manufacturing sales climbed 1.9 percent in March and consumer price inflation was … “Bad Week for Loonie in Spite of Some Good News”
Chile’s Central Bank Holds Main Interest Rate, Peso Advances
The Chilean peso rose even after Chile’s central bank refrained from increasing interest rates. Good prospects for the nation’s economy and possibility of an interest rate hike in the future may be responsible for the currency’s gains. The Central Bank of Chile decided to maintain its main interest rate at 5 percent. Analysts had different view on future monetary policy of the central bank. Some said that the bank would boost the rate in the second … “Chile’s Central Bank Holds Main Interest Rate, Peso Advances”
Euro Drops to 4-Month Low, Closes Above Opening Level
The euro reached the lowest level in four months against the US dollar and the lowest in three months versus the Japanese yen today on fears that the European crisis is escalating. The currency was higher on the day though. German Finance Minister Wolfgang Schaeuble said that the crisis may persist for another two years. Fitch Ratings downgraded Greece’s sovereign credit rating from B- to CCC. Moody’s Investors Service lowered ratings … “Euro Drops to 4-Month Low, Closes Above Opening Level”
Risk Appetite, Better Situation Help UK Pound
UK pound is being helped on two fronts today. General risk appetite, with the focus on the Facebook IPO, is helping the sterling against the US dollar. On the other hand, pound is higher against the euro, as concerns about what’s happening in the eurozone make the pound a preferred choice as a European safe haven currency. Right now, pound is gaining against the US dollar as some disappointing news (including the unemployment claims … “Risk Appetite, Better Situation Help UK Pound”
US Dollar Lower as Risk Appetite Makes an Appearance
US dollar is lower today as risk appetite makes an appearance in the markets. As commodity prices rise, and equities see a bit of a reprieve from recent troubles, the greenback is pulling back. Concerns about Europe remain, but they are being trumped by other news — especially the imminent Facebook IPO. In less than hour, the Facebook IPO will be launched, and that is the focus today. Equities are expected … “US Dollar Lower as Risk Appetite Makes an Appearance”
Brazilian Real Rises, Stays Near 2 per Dollar
The Brazilian real rose today, but stayed near the 2 per dollar level as the impact of the European crisis on currencies of emerging markets sapped strength of the Brazilian currency. The real is suffering from risk aversion sentiment among speculators and Brazilian policy makers are not likely to support the currency. On the contrary, the government may be glad to see a weaker currency as President Dilma Rousseff said that she considers the real “extremely … “Brazilian Real Rises, Stays Near 2 per Dollar”
Aussie Mixed in Choppy Trading
Aussie is turning in a mixed performance today as choppy markets look for direction, and try to process all of the difficulties happening in the eurozone. On one hand, Aussie is lower against the US dollar as risk aversion makes an appearance. But, on the other, the Australia dollar is gaining against European currencies weighed down by difficulties. Against the US dollar, the Australian dollar is losing ground. US dollar is considered a safe haven in times … “Aussie Mixed in Choppy Trading”
Eurozone Bank Worries Send Euro Lower
Eurozone bank worries are sending the euro lower today, along with rises to funding costs. Uncertainties about what’s next for Greece and for the eurozone remains, and that is weighing on the euro in Forex trading right now. German bund futures hit record highs today, reaching 143.79 at one point, and Spanish bond yields are on the rise. Spanish borrowing costs continue to be of concern, since it means that the debt … “Eurozone Bank Worries Send Euro Lower”