China announced, in a surprise decision, that it is cutting its interest rate. The announcement helped maintain risk appetite from yesterday, and provided a boost for the Australian dollar. Aussie is seeing gains today as a result of the Chinese policy decision. One of Australia’s biggest export markets is China, and the Aussie has been struggling a bit as China’s economy slows more than expected. Today, though, China unexpectedly announced that … “Aussie Heads Higher on China Rate Cut”
Month: June 2012
Currency Baskets: Trading One Currency’s Fate Instead of Two
US based forex broker Oanda recently introduced currency baskets through its new social initiative called fxUnity. This is an interesting new tool that allows trading one currency, as such the US dollar or the euro against a group of currencies. This enables going long or short on one specific currency, without having to take into … “Currency Baskets: Trading One Currency’s Fate Instead of Two”
BOE Keeps Stimulus Plan on Hold; UK Pound Rises
The Bank of England kept its benchmark interest rate the same, as well as announced that it will not expand its quantitative easing plan at this time. The news served to help bring the UK pound higher against the US dollar and the euro today. There is some speculation that the Bank of England will have to make more efforts at stimulus, at some point if the economy doesn’t pick up. However, it … “BOE Keeps Stimulus Plan on Hold; UK Pound Rises”
FXCM Sees 23% Rise in Retail Customer Volume in May
US Forex Broker FXCM published a few metrics for the month of May. The higher volatiltiy in markets is reflected in trading volume which leaped from April. The picture is most likely similar for other brokers. Also the number of retail tradeable accounts rose in May. However, May 2011 was also quite exciting, so this … “FXCM Sees 23% Rise in Retail Customer Volume in May”
Euro Gains vs. Yen, Flat vs. Dollar
The euro gained today against the Japanese yen on positive results of a French debt auction and signs that the European Central Bank may take actions to battle the financial crisis. The currency was down against the US dollar. France held an auction today, selling â¬7.84 billion of debt. Yesterday, the ECB held its main interest rate unchanged at 1.0 percent. Bank’s President Mario Draghi said at a press-conference after the policy decision: … “Euro Gains vs. Yen, Flat vs. Dollar”
Aussie Gains with Unexpectedly Growing Employment
The Australian dollar climbed today, rising for the fourth straight session against the US dollar and the Japanese yen, after Australia’s employment unexpectedly rose in May. Australian employers added as much as 38,900 jobs in May, while experts predicted a decline by 2,200 jobs. Employment increased by 7,000 in April. The unemployment rate increased slightly by 0.1 percentage point to 5.1 percent, just as was expected. The positive data followed yesterday’s encouraging report about … “Aussie Gains with Unexpectedly Growing Employment”
USD/CAD: Trading the Canadian Ivey PMI Jun 2012
The Canadian PMI is based on a survey of purchasing managers in a wide range of sectors and geographic location. Respondents are surveyed for their view of the economy and business conditions in Canada, including employment, prices and new orders. A reading which is higher than the market forecast is bullish for the Canadian dollar. Here … “USD/CAD: Trading the Canadian Ivey PMI Jun 2012”
US Dollar Falls as Risk Appetite Returns
Risk appetite is returning to the financial markets as the good news about the eurozone takes precedence. As a result, the US dollar is heading lower as Forex traders look for higher yields. However, greenback weakness may not be lasting. For now, the US dollar is heading lower as Forex traders rejoice in the latest plan by the European Union to create a banking union. Now, instead of relying on individual governments to bail out struggling banks, … “US Dollar Falls as Risk Appetite Returns”
Euro Higher as Optimism Makes an Appearance
Euro is heading higher today as optimism about what eurozone leaders will do to ease the crisis rises. There are hopes that Spain’s situation will prompt action from leaders. The optimism is helping global markets rally, and providing a boost for the euro. The European Central Bank isn’t actually expected to lower interest rates in its decision, but many expect ECB President Mario Draghi to announce that … “Euro Higher as Optimism Makes an Appearance”
NZ Dollar Climbs as Milk Prices Advance
The New Zealand dollar gained today as milk prices jumped and risk appetite of Forex traders bolstered appeal of currencies tied to prices of commodities. That was the third consecutive session of gains of the currency against the Japanese yen. According to the trade-weighted index on Fonterraâs website, August contract for delivery of milk powder gained 12.3 percent from the May 15 auction. That was the first gain since December 6. Joseph Capurso, a currency … “NZ Dollar Climbs as Milk Prices Advance”