![How China and Japan Bypass the Dollar [Infographic]](https://investinearth.org/wp-content/uploads/2012/07/bypass-the-dollar_small_600x1181.jpg)
The world’s No. 2 and No. 3 economies, China and Japan, began trading directly with their respective currencies. This move has long term implications on the status of the USD as a reserve currency. OANDA prepared a nice infographic visualizing this move, and explanations from Mingze Wu, OANDA’s Market Specialist. Japan and China bypass the dollar … “How China and Japan Bypass the Dollar [Infographic]”
Month: July 2012
Ringgit Rises on Easing Speculations
The Malaysian ringgit rose today on speculations that central banks of developed nations would ease their monetary policies to cope with economic slowdown. Many analysts expect that the chief of the European Central Bank, who promised yesterday to support the euro, would lower interest rates on the next policy meeting. The Federal Reserve will announce its monetary decision August 1 and the recent stream of poor fundamental data suggests that … “Ringgit Rises on Easing Speculations”
Won Climbs as Current Account Reaches Record High
The South Korean won got a boost from favorable domestic fundamentals today. The South Korean current account widened to a record and the nation’s economy continued to grow. The Bank of Korea reported that the current account surplus expanded to $5.8 billion in June from $3.6 billion in May. That may be not good for the won in a long run as the surplus was a result of declining imports and constrained consumer demand, which is bad for economy. … “Won Climbs as Current Account Reaches Record High”
CAD Gains vs. USD & JPY, Falls vs. EUR
The Canadian dollar climbed against the US dollar and the Japanese yen after European Central Bank President Mario Draghi promised that the central bank will support the euro. As one could expect, the euro outperformed the Canadian currency after that promise. Draghi said that “the ECB is ready to do whatever it takes” to keep the shared European currency in place. He also addressed the issue of rising borrowing costs: To the extent … “CAD Gains vs. USD & JPY, Falls vs. EUR”
Pound Climbs as Draghi Spurs Risk Appetite
The Great Britain pound surged today against the US dollar and the Japanese yen after European Central Bank President Mario Draghi said that the Bank would take steps to support the currency. The sterling even managed to gain on the euro. Draghi said today: Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. Believe me, it will be enough. The comment led to speculations whether … “Pound Climbs as Draghi Spurs Risk Appetite”
3 Reasons to Fade the Draghi Rally
ECB president Mario Draghi triggered an impressive rally by saying that the ECB will do “everything in its mandate” to save the euro. These words were interpreted as a thick hint towards direct bond buying via the SMP program. However, there are reasons to doubt that this is the case, and to label this rally … “3 Reasons to Fade the Draghi Rally”
US Dollar Drops in Forex Trading
US dollar is lower in Forex trading today, dropping as traders get excited about Mario Draghi’s comments. The ECB president vowed to save the euro, and that has risk appetite surging, and Forex traders see little need for a safe haven like the US dollar in all the eurphoria. Mario Draghi‘s comments are driving the markets higher today, and that includes high beta currencies. US dollar is down as a result. … “US Dollar Drops in Forex Trading”
FXStreet Upgrades Economic Calendar
FXStreet, one of the largest forex portals, made significant changes to its popular live economic calendar. More events from more countries are available, visual improvements were made and event and country pages were added for in depth insights. The FXStreet calendar is available on Forex Crunch right here and has been upgraded as well. More … “FXStreet Upgrades Economic Calendar”
Euro Goosed Higher on Draghi Comments
Euro has jumped higher, goosed by the comments from European Central Bank president Mario Draghi. The ECB’s commitment to the euro is helping the 17-nation currency against the US dollar, and helping spur a bit of risk appetite. Mario Draghi insisted that the ECB will do “whatever it takes” to prevent the euro from disappearing. Draghi’s confident tone is helping Forex traders decide that the euro will be saved, … “Euro Goosed Higher on Draghi Comments”
Yen Threatened by Deflation
The Japanese yen fell against the euro today as demand for a safe haven waned, while investors feared that Japan remains under threat of deflation. It looks like the speculations about the ESM getting a banking license brought the Forex market away from a fear mode. That is not good for the yen, which also suffers from deflation in Japan. The Corporate Services Price Index (which is considered a leading indicator … “Yen Threatened by Deflation”