The Mexican peso gained today, but erased its gains on speculations that the slowing global economic growth may have a negative influence on prospects of Mexico’s economy. The peso was down yesterday, but rebounded today. The gains were limited, though, because of uncertainty that prevails on the Forex market ahead of this week’s EU summit. Banco de Mexico said in its policy meeting minutes that the balance of risks for the nation’s … “Mexican Peso Pares Gains on Fears of Global Economic Slowdown”
Month: June 2012
Aussie Rebounds on Positive Outlook for Australia’s Economy
The Australian dollar rebounded today after yesterday’s decline as the positive outlook for Australia’s economy damped the negative effect of the European crisis on the attractiveness of the currency. Concerns about the debt issues in the countries of the European Union have led to interest rate cuts by the Reserve Bank of Australia. That made the Aussie weaker. Yet the cut were followed by positive macroeconomic data, causing speculations that the Australian economy is strong enough to weather the crisis in Europe. … “Aussie Rebounds on Positive Outlook for Australia’s Economy”
Canadian Dollar Slides as Poor Market Sentiment Weakens Commodities
The Canadian dollar sank as negative sentiment on the Forex market drove investors away from currencies related to economic growth and commodities. The currency advanced versus the euro, though. Shaun Osborne, the chief currency strategist at Toronto-Dominion Bank TD Securities unit, said: The US dollar is starting to pick up some momentum against the Canadian dollar from here. We have commodity prices that look quite soft. Indeed, commodities, … “Canadian Dollar Slides as Poor Market Sentiment Weakens Commodities”
Yen Climbs as Hopes for Europe Tarnished
The Japanese yen climbed today, following the last week’s unexpectedly poor performance, as problems in Europe show no signs of subsiding, meaning that safe assets remain in high demand. There is seemingly no end to bad news out of Europe. Anti-euro sentiment is growing in Italy. Moody’s Investor Service downgraded 28 Spain’s banks. And it looks like not many market participants put hope on the coming summit … “Yen Climbs as Hopes for Europe Tarnished”
Downgrades? Spanish Banks Should All Have a Perfect AAA
Moody’s downgraded no less than 28 Spanish banks between 1 to 4 notches. The move was expected and joins similar moves by other rating agencies and by Moody’s in the past. This decision to cut ratings seems illogical: Spain and other European countries will do everything to keep the banks afloat, that these banks seems … “Downgrades? Spanish Banks Should All Have a Perfect AAA”
US Dollar Gains on Risk Aversion
US dollar is on the rise today, thanks to risk aversion. With concerns in Europe, and uncertainty about the impact of the US Supreme Court ruling on health care reform, the greenback is in demand as a safe haven. As European leaders meet this week in a summit to try to find a solution to the sovereign debt problems that beset them, the US dollar is on the rise against its major counterparts. Few are hopeful that something substantial … “US Dollar Gains on Risk Aversion”
Europe Fears Dominate, Sending Euro Lower
Fears about Europe are back in the spotlight, causing worries and resulting in risk aversion that is weighing heavily on the euro today. Euro is lower as concerns about what’s next send EUR/USD below the 1.25 mark. European leaders are meeting for a summit this week, hoping to find a solution to the debt problems that beset the region. However, after so many failed attempts, there is little hope that … “Europe Fears Dominate, Sending Euro Lower”
Rand Falls on Weakening Prospects for Global Economic Growth
The South African rand declined for the third consecutive session today as Forex traders were worried that economic growth is slowing all around the globe, reducing demand for exports of emerging economies. Citigroup predicted that Chinaâs economic growth will be 7.8 percent this year, down from the previous forecast of 8.1 percent. The European Union summit may bring some relief to the market in case of a good outcome of the meeting, … “Rand Falls on Weakening Prospects for Global Economic Growth”
Lira Drops After Syria Shoots Turkish Warplane
The Turkish lira fell today after Turkey’s warplane was shot down by Syrian forces in international airspace, heightening political tensions between the Middle Eastern countries. Turkey said that it considers what an answer should be for the incident. Tensions between the countries were already high as Syria criticized Turkey for hosting meetings for Syrian anti-government groups, while Turkey called Syria to change the government and blamed it for deaths of anti-government … “Lira Drops After Syria Shoots Turkish Warplane”
USD/JPY: Trading the US CB Consumer Confidence Index
The CB Consumer Confidence Index provides important readings about consumer confidence and spending, which are critical for economic growth. A higher reading than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Tuesday at 14:00 GMT. Indicator Background Analysts carefully scrutinize the direction and rate of … “USD/JPY: Trading the US CB Consumer Confidence Index”