Greenback may be lower against the euro right now, but it is already showing signs of drifting higher as risk aversion makes an appearance. Retail sales data in the United States was disappointing, and now riskier assets are losing ground. That means that the euro may not have the upper hand for much longer. For now, US dollar is lower, and the dollar index is down. However, the greenback … “US Dollar Begins Drifting Higher on Risk Aversion”
Month: June 2012
OANDA on course for Billionth Transaction
US based Forex Broker Oanda is set to see its billionth transaction, and is offering prizes to the first three clients who make transactions after this mark. This high number of transactions is a significant milestone for the broker that recently replaced its CEO. Will the focus on Asia accelerate the crossing of the 2 … “OANDA on course for Billionth Transaction”
USD/JPY: Trading the US Unemployment June 2012
The US Unemployment Claims, a key indicator, is released weekly. It measures the number of people who filed for unemployment for the first time during the previous week. A reading which is higher than the market forecast is bearish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Thursday at 12:30 … “USD/JPY: Trading the US Unemployment June 2012”
Franc Gains vs. Dollar, Tests Resolve of SNB to Keep Ceiling
The Swiss franc appreciated for the second day against the US dollar today as fears of escalating sovereign-debt crisis in Europe forced investors seek a safe haven. The currency was flat against the euro. Forex traders become more and more tense as the Greek elections near and Spain’s trouble mounting. The Swiss National Bank is hard pressed to keep the cap of 1.20 francs per euro as market participants flock to the safety of the franc. The foreign-currency reserves … “Franc Gains vs. Dollar, Tests Resolve of SNB to Keep Ceiling”
Mexican Peso Keeps Gains Amid Speculations About Fed’s QE3
The Mexican peso climbed yesterday and kept its gains today amid speculations that the US Federal Reserve would increase its stimulus for the US economy, improving prospects for export-oriented countries. Federal Reserve Bank of Chicago President Charles Evans hinted that he would vote for easing measures, though he does not vote on the Federal Open Market Committee this year. Nevertheless, the comment shows that US policy … “Mexican Peso Keeps Gains Amid Speculations About Fed’s QE3”
Pound Profits from Fears About Future of Eurozone
The Great Britain pound gained today as Forex traders quickly lost belief that the bailout for Spain would resolve the countries problems. Fears returned to the FX market and pound again was considered a refuge from Europe’s woes. Fitch Ratings said that countries of the eurozone face a risk of credit rating downgrades. Edward Parker, the Managing Director of the rating agency, even stated that the currency union may break up if … “Pound Profits from Fears About Future of Eurozone”
Aussie Finds Support against Majors
Aussie is finding support against other majors today, reversing earlier losses. Thanks to a little boost from gold, and Australia’s connection to the Chinese economy, Aussie is eking out modest gains. Australian dollar headed lower earlier today, dropping as risk aversion set in. With Spanish bond yields rising, and Fitch warning that more downgrades could be coming for AAA countries in the eurozone, high beta … “Aussie Finds Support against Majors”
Euro Struggles Continue on Debt Concerns
Euro continues to struggle as debt concerns remain in the spotlight. The ratings agency Fitch has issued a warning that downgrades are possible for the AAA nations in the currency region. Additionally, Nouriel Roubini is calling for lower taxes and higher salaries to stimulate the economy in Europe. Right now, eurozone leaders look unable to handle the crisis, and that is weighing on the euro. It is little surprise that the euro is having trouble right … “Euro Struggles Continue on Debt Concerns”
Swedish Krona Rises Even After CPI Slows
The Swedish krona was rising today even after a report that showed nation’s inflation slowing. The crisis in the eurozone has hurt Sweden’s economy, but economists say that the economic situation in the country itself is beginning to stabilize. Statistics Sweden reported today that the Swedish inflation rate fell to 1.0 percent in May from 1.3 percent in April. That was in line in analysts’ expectations. The currency has dropped sharply … “Swedish Krona Rises Even After CPI Slows”
Yen Falls as IMF Considers It Overvalued
The Japanese yen fell today as the International Monetary Fund voiced opinion that the currency is overvalued and Japan’s monetary authorities should take steps to weaken the yen. The IMF stated that the Japanese currency is “moderately overvalued”. David Lipton, the First Deputy Managing Director of the IMF, suggested that Japan’s policy makers should perform an intervention. Losses of the yen were limited as demand for safety rises on the Forex market. USD/JPY was … “Yen Falls as IMF Considers It Overvalued”