The Australian dollar had a nice rally this week as positive domestic fundamentals added to improving market sentiment that pushed currencies related to growth higher. That was a refreshing sight after a long stretch of declines. The Aussie was rallying for the most part of the week, demonstrating a particularly strong performance on Wednesday. That is a pleasant turn of event, considering that the currency has entered a downtrend in the beginning of March. It is too … “Australian Dollar Posts Weekly Gains, Reverses Downtrend”
Month: June 2012
Aussie Erases Losses as Market Sentiment Turns to Optimism
The Australian dollar fell against most major currencies today, but reversed losses by the end of the session as attractiveness of riskier assets returned after market sentiment improved somewhat. Investors’ mood was downbeat at the beginning of today’s trading session, but it brightened by the end of the day. It was not full-fledged risk-on sentiment, but there was definitely less negativity on the Forex market and commodity currencies profited from that. The weekend … “Aussie Erases Losses as Market Sentiment Turns to Optimism”
Loonie Suffers from Poor Canadian Employment Data, Recovers
The Canadian dollar dropped against its US peer and the Japanese yen as a set of poor fundamental data was released today. The currency managed to trim its losses against the yen and advance versus the greenback as well as the euro. Canada’s employment was unchanged (demonstrated zero percent change) in May. Canadian employers added just 7,700 jobs last month, compared to 58,200 in the month before. Trade balance posted an unexpected deficit of C$367 … “Loonie Suffers from Poor Canadian Employment Data, Recovers”
US Dollar Heads Higher on Return of Risk Aversion
US dollar is heading higher today as risk aversion returns to the markets and investors and Forex traders look for safe haven assets. Global economic uncertainty has many wondering what will happen next, and even the threat of QE3 in the United States isn’t keeping the dollar down today. Greenback is lower today, thanks to risk aversion. Forex traders are looking for capital preservation more than yield, and that means … “US Dollar Heads Higher on Return of Risk Aversion”
Euro Falls as Global Growth Concerns Return
Euro is falling once again, thanks to concerns with global growth. Economic weakness in the eurozone, as well as another downgrade for Spain, are weighing on the euro. It’s not helping, either, that growth in the rest of the world is rather toned down as well. The big news today, of course, is that Fitch dropped Spain’s credit rating to just two notches above junk status. Concerns about Spain’s banking system … “Euro Falls as Global Growth Concerns Return”
Ruble Goes Down with Crude Oil as Traders Cautious
The Russian ruble declined today as prices for crude oil, the main export of Russia, fell after Federal Reserve Chairman Ben Bernanke made traders cautious, mentioning threat to the US economy from fiscal tightening and Europe’s debt. Brent grade of crude oil slumped as much as 1.6 percent to $98.34 per barrel. The yield on Russian bonds maturing in 2022 went up by two basis points to 4.071 percent. The warning from Bernanke … “Ruble Goes Down with Crude Oil as Traders Cautious”
Mexican Peso Retreats as Bernanke Evaporates Optimism
The Mexican peso retreated today, after reaching the highest level in more than two weeks against the US dollar yesterday, as comments of the Federal Reserve Chairman Ben Bernanke muted optimism of Forex traders. Bernanke warned about the negative impact of the crisis in Europe. He also mentioned a fiscal tightening, saying “a severe tightening of fiscal policy at the beginning of next year that is built into current law — the so-called fiscal … “Mexican Peso Retreats as Bernanke Evaporates Optimism”
Greece: Either a Grexit or Bailout 3
The situation in Greece is deteriorating quite rapidly. An exit from the euro-zone has high chances. If not, a third bailout program including debt restructuring also for the official sector is on the cards. The second bailout program is showing more and more signs of failure, and the current situation isn’t likely to last, whatever … “Greece: Either a Grexit or Bailout 3”
Won Advances as South Korean Economy Expands
The South Korean won gained today against the US dollar as the nation’s economy expanded and general sentiment on the Forex market was rather positive for higher-yielding currencies of emerging markets. Yet there are downside risks for the currency. The won closed flat versus the euro. South Korea’s gross domestic product grew 0.9 percent in the first quarter of this year from the previous three months, matching the Bank of Korea’s April forecast. That … “Won Advances as South Korean Economy Expands”
Yen Falls as Traders Feel Less Need for Safety
The yen fell today, dropping for the fourth consecutive session, as China’s interest rate cut triggered speculations that the country is going to stimulate its economy. Forex traders felt optimism and left safer currencies in favor of higher-yielding ones. The Peopleâs Bank of China announced that it would lower the key one-year deposit rate and the one-year lending rate by 0.25 percentage point. There was good news from Europe as Jean-Claude … “Yen Falls as Traders Feel Less Need for Safety”