The Hungarian forint fell today as negative macroeconomic data from Germany scared investors and made them reluctant to buy risky assets. German retail sales fell 0.1 percent in June, frustrating analysts who predicted a 0.6 percent increase. Unemployment rose by 7,000. Germany is the main driver of economic growth in the European Union, therefore any negative data reflects badly on smaller European economies. The coming monetary policy meeting … “Forint Suffers from Bad German Data”
Month: July 2012
EUR/CAD Rebound from Record Low as Canada’s Growth Slows
The Canadian dollar fell today against most major currencies after the report showed that economic growth of the North American country slowed more than was anticipated. Canada’s gross domestic product rose 0.1 percent in May, following the 0.3 percent expansion in April. Economists hoped for an increase by at least 0.2 percent. The losses were limited as the market sentiment was supportive for higher-yielding currencies amid speculations that the Federal Reserve … “EUR/CAD Rebound from Record Low as Canada’s Growth Slows”
Fed Could Extend or Pretend – FOMC Preview
Ben Bernanke and his colleagues are unlikely to make an outstanding statement for now. QE3 is always an option that the market is buzzing about, but it seems that the Fed will leave the scene for ECB this time. Apart from taking no action at all after the recent decision to extend “Operation Twist”, the … “Fed Could Extend or Pretend – FOMC Preview”
5 Reasons Why Draghi Could Disappoint
The upcoming rate decision in the euro-zone holds very high hopes for a big bang (even full QE) that will change the course of the debt crisis, after ECB president Draghi and European leaders said they will do everything to save the euro. However, there are 5 reasons to doubt that Draghi will indeed deliver … “5 Reasons Why Draghi Could Disappoint”
US Dollar Mixed in Forex Trading Today
US dollar is mixed in Forex trading today, a product of the unsettled and interesting events taking place right now. There is a bit of risk appetite on the Forex market, and that is weighing on the greenback against the euro, but the dollar is higher against the UK pound on the difficult news out of Britain. Good news in the United States is contributing to a general feel of cautious optimism. In May, home prices rose for the fourth month … “US Dollar Mixed in Forex Trading Today”
Euro Retains Upper Hand, But Sees Limitations
Euro retains the upper hand today, gaining against its major counterparts, thanks in large part to expectations about what the ECB will decide. A policy decision is expected later this week, and there are hopes that the central bank will announce a plan to buy foreign debt in an effort to bring down soaring bond yields in countries like Spain and Italy. Even with this measured optimism (after all, … “Euro Retains Upper Hand, But Sees Limitations”
Aussie Gains on Better-Than-Expected Housing Report
The Australian dollar rose today after the release of the housing report that was better than expected by market participants. The positive data reduce the probability of an interest rate cut. Building approvals fell 2.5 percent in June from May (seasonally adjusted). The reading was worse than the May data that showed growth by 27 percent, but much better than the anticipated decline by 14.6 percent. The report spurred speculations that … “Aussie Gains on Better-Than-Expected Housing Report”
Pound Falls as Consumer Confidence Index Remains in Negative Territory
The Great Britain pound fell today against the US dollar and the euro as the report showed that confidence of Britain’s consumers remained negative. The GfK Consumer Confidence index stayed unchanged at -29 in July, while economists hoped for a little improvement to -28. Nick Moon, the Managing Director of Social Research at GfK, commented on the report: According to the latest GDP figures, the economy has suffered a further 0.7 per cent decline between April and June. … “Pound Falls as Consumer Confidence Index Remains in Negative Territory”
GBP/USD Trading the British Manufacturing PMI
The British Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the UK. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes … “GBP/USD Trading the British Manufacturing PMI”
Ruble Falls as Optimism Retreats from FX Market
The Russian ruble fell today, erasing its earlier gains, as Forex traders felt themselves less optimistic and were reluctant to buy risky assets. Today’s trading session has started on a positive note as last week’s pledge of European Central Bank President Mario Draghi to support the euro caused optimism that persisted till today. Yet traders has started to wonder whether Draghi are ready to act or the promise was … “Ruble Falls as Optimism Retreats from FX Market”