Euro is pulling back a little on uncertainty today. Euro was higher earlier on the news that central banks would coordinate efforts in the event that Greek elections go badly this weekend, but there is enough disquiet about what’s ahead that the euro is slightly lower. Euro got a bit of a boost earlier on the expectation that central banks would unite in efforts to blunt the worst of the damage if … “Euro Pulls Back a Little on Uncertainty”
Month: June 2012
Canadian Dollar Pulls Back on Global Economic Concerns
Even though investors are sending stocks higher, there are plenty of concerns about the economy dragging down some of the high beta currencies, including the Canadian dollar. Loonie is down against the US dollar, heading lower on expectations of a slowing global economy. Concerns about the crisis in Europe, slowing growth in China, and sluggish recovery in the United States are all weighing on Canada, which relies heavily on exports (especially oil) … “Canadian Dollar Pulls Back on Global Economic Concerns”
Won Gains on Hopes for QE3 from Fed, Gains Limited
The South Korean won rose today as speculations that the US Federal Reserve would stimulate the slowing economy continued to bolster higher-yielding assets of emerging markets. The won profited, as most other currencies associated with higher risk, from increasing probability of the third round of quantitative easing from the Fed. Gains were limited, though, as uncertainty about the outcome of the elections in Greece this weekend reduced investors’ willingness to risk. Analysts said … “Won Gains on Hopes for QE3 from Fed, Gains Limited”
Yen Jumps After BoJ Refrains from Stimulus
The Japanese yen climbed against all other major currencies today after the Bank of Japan left its monetary policy unchanged, refraining from expanding monetary stimulus. The BoJ left its main interest rate near zero and the size of asset purchases unchanged at today’s policy meeting. The central bank voiced hopes in its statement that the economy will “return to a moderate recovery path as domestic demand remains firm and overseas … “Yen Jumps After BoJ Refrains from Stimulus”
3 Scenarios for the Greek Elections and EUR/USD
Greek elections on June 17th are a huge risk event for all the world’s currencies. They are timed just before a summit of G-20 leaders. What are the possible outcomes and the impact on currencies? After 5 years of recession, Greeks abandoned the two mainstream and pro-bailout parties: PASOK (left) and New Democracy (right). Parties … “3 Scenarios for the Greek Elections and EUR/USD”
Time for Leadership
In 2008, banks were in trouble, yet governments were able and ready to act. Immediate decisive action in the US and the UK stabilized the banking system after Lehman Brothers collapsed. This was followed by a coordinated effort at the beginning of 2009. In addition, China continued growing strongly, and together with other Asian markets, … “Time for Leadership”
Mexican Peso Rises as Traders Put Hopes on Central Banks
The Mexican peso gained on speculations that the Federal Reserve will stimulate the US economy as measure to support the faltering recovery and on rumors that European central bank will coordinate their efforts to bolster the European economy. With the recent wave of negative macroeconomic data from the United States, the third round of quantitative easing is a definite possibility. Aryam Vazquez, an economist at Wells Fargo & Co., voiced his opinion regarding the influence … “Mexican Peso Rises as Traders Put Hopes on Central Banks”
Euro Gains as US Data Sparks Talks About Stimulus
The euro advanced against other major currencies today as poor macroeconomic data from the United States weakened the dollar and spurred speculations that the Federal Reserve will stimulate the economy to support the faltering recovery. The recent streak of negative fundamental reports gave evidence that US recovery is not as robust as many economists were thinking before. The Consumer Price Index was down 0.3 percent in May, while it was … “Euro Gains as US Data Sparks Talks About Stimulus”
US Dollar Index Slips
US dollar index is slipping today as Forex traders find risk appetite, even though there is little good news coming out of Europe. Instead of seeing risk aversion today, there is a bit of risk appetite, and that is sending the US dollar lower against its major counterparts. Also weighing on the US dollar is the possible of an extension of Operation Twist. US economic data continues to offer … “US Dollar Index Slips”
Greek Elections: OANDA Will Freeze Activity During 9 Hours
In a very rare step, US based Forex broker OANDA announced to its clients that it will not accept any trading activity between 10:00 GMT and 19:00 GMT on Sunday, June 17th. Forex trading begins at Sydney at 19:00 GMT. While volume is usually thin at these early hours, it will probably be very high … “Greek Elections: OANDA Will Freeze Activity During 9 Hours”