UK pound is mixed today, gaining against the US dollar, but pulling back against the euro. Risk appetite is making a cautious appearance in the currency markets, even with trouble in the eurozone. Indeed, pound’s fall against the euro is a bit of a surprise after the British currency’s recent gains. Earlier, the UK pound logged gains against the euro, as Fitch warned again that AAA countries in the eurozone could be … “UK Pound Mixed Today”
Month: June 2012
Rupiah Falls as Moody’s Downgrades Spain, Recovers
The Indonesian rupiah fell today, leading other Asian currencies in decline, after Moody’s Investors Service downgraded Spain’s sovereign-credit rating, refueling concerns caused by the crisis in the countries of the eurozone. Currently the rupiah recovered after the loss. Moody’s announced that it “downgraded Spain’s government bond rating to Baa3 from A3, and has also placed it on review for possible further downgrade”. The reasons for such decision the rating agency cited were: … “Rupiah Falls as Moody’s Downgrades Spain, Recovers”
Chinese Official / Unofficial Figures Diverge – Hard Landing
Official Chinese figures are always treated with a significant amount of doubt by the markets. Nevertheless, the publication still has a strong impact. However, the recent divergence of the official manufacturing PMI and the unofficial HSBC/Markit PMI makes the grain of salt a bit bigger. For the month of May, the unofficial figure showed deeper … “Chinese Official / Unofficial Figures Diverge – Hard Landing”
SNB Keeps Libor Unchanged, Reiterates Pledge to Keep Ceiling
The Swiss franc was flat today against the US dollar and fell versus the Japanese yen after the Swiss National Bank maintained its main Libor interest rate and reiterated the pledge to keep the cap on the currency. The SNB kept its benchmark interest rate near zero. Thomas Jordan, the Vice Chairman of the Governing Board, repeated his pledge to keep the currency cap at 1.20 francs per euro. He said: Even at the current … “SNB Keeps Libor Unchanged, Reiterates Pledge to Keep Ceiling”
FXCM Expands Institutional Presence – to Buy Lucid Markets
Publicly traded US Forex Broker FXCM has announced that it signed an agreement to invest $176 million into Lucid Markets. This will give FXCM a 50% controlling interest. Lucid Markets is market making company for institutional currency trading. In the monthly reports that FXCM releases about its operating metrics, institutional growth outperforms retail growth, in busy months … “FXCM Expands Institutional Presence – to Buy Lucid Markets”
EUR/USD: Trading the UoM Consumer Sentiment June 2012
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health and strength of the economy. A reading which is higher than the market forecast is bullish for the US dollar. Here are all the details, and 5 … “EUR/USD: Trading the UoM Consumer Sentiment June 2012”
The ECB Pushed Spain to the Bottom – Will it
As yields on 10 year bonds are flirting with the 7% mark, it’s a good opportunity to look at the high dependency on banks and the sovereign and vice versa, thanks to the LTROs. The ECB’s long term refinancing operations initially lowered Spanish yields and helped the banks. Spanish banks took cheap loans from the … “The ECB Pushed Spain to the Bottom – Will it”
NZ Dollar Gains After RBNZ Keeps Key Rate Stable
The New Zealand dollar started today’s trading session posting gains after the Reserve Bank of New Zealand decided to keep its key Official Cash Rate unchanged and hinted that the economy may expand. The RBNZ left its main interest rate unchanged at 2.5 percent today. Bank’s Governor Alan Bollard mentioned in the statement after the decision the problems in Europe (one of the key trading partners of New Zealand): Political and economic … “NZ Dollar Gains After RBNZ Keeps Key Rate Stable”
Poor US Fundamentals Sap Strength of Loonie
The Canadian dollar fell today against most of its major peers as poor fundamental reports from the United States dimmed prospects for Canadian exports, while European problems still damp demand for currencies tied to growth. There was a bunch of unfavorable data from the USA today. Retail sales were down 0.2 percent in May. The Producer Price Index dropped 1.0 percent, while market participants hope from much … “Poor US Fundamentals Sap Strength of Loonie”
Euro Holding to Earlier Gains
Euro is holding to earlier gains, and even building again, thanks to an appearance of risk appetite. Earlier, risk appetite faded a bit after US retail sales data, but now there appears to be a resurgence in a desire for riskier assets. The euro, as a result, is regaining its advantage against the US dollar. Earlier, euro pared its gains as the US dollar began creeping higher. Concerns about the US economy were … “Euro Holding to Earlier Gains”