The Canadian dollar was weak today. The explanation for the poor performance was simple: worries about Europe and its debt gain strength again. The Canadian dollar fell even versus the euro, which itself was under pressure from the negative sentiment. The yield of Spanish bonds surged to 7.5 percent. It broke above the 7 percent level that is considered important as other indebted countries asked for a rescue after their … “Europe Remains Source of Fear, CAD Still Under Pressure”
Month: July 2012
US Dollar Gains as Risk Aversion Rises
US dollar is heading higher today, gaining as risk aversion rises, and concerns about the future of the eurozone dominate world markets. Greenback is getting a boost as a safe haven as Forex traders shun high beta currencies. Risk aversion has taken complete control of world markets today. Forex traders are turning to safe havens like the US dollar as the VIX shows an increase in volatility, and as concerns about Europe take … “US Dollar Gains as Risk Aversion Rises”
Euro Below 1.21 as Concerns for a Major Spanish Bailout Mounts
It’s been two years since the euro has hit levels seen today. Concerns about the need for a major Spanish bailout are on the rise, and that is dragging down the euro. Spain would be the fourth eurozone country to ask for a major bailout — an indication that the sovereign debt crisis is still not under control. Euro is falling as concerns about what’s next for the eurozone plague the 17-nation currency. In Spain, … “Euro Below 1.21 as Concerns for a Major Spanish Bailout Mounts”
Indonesian Rupiah Weakens on China, Rebounds
The Indonesian rupiah fell today, before rebounding, as worries about the economic slowdown in China made investors reluctant to buy risky currencies. The currency traded at its opening level after the earlier drop. Song Guoqing, an adviser in China’s central bank, said last week that growth may slow to 7.4 percent in the third quarter of 2012 from 7.6 percent in the previous quarter. China is the second-biggest economy in the world and its performance … “Indonesian Rupiah Weakens on China, Rebounds”
Ruble Drops as Yield on Russian Debt Rises
The Russian ruble dropped today as the yield on Russian bonds grew amid concerns that the global economy is slowing and demand for Russia’s exports would wane. Prices for crude oil, the main export commodity of Russia, fell amid fears of a double-dip recession. Brent grade of crude lost 1.9 percent to $104.80 per barrel in New York today. The Russian currency may get a boost as Russian companies are going to convert their … “Ruble Drops as Yield on Russian Debt Rises”
Australian Dollar – The Struggle With Parity Continues
The Australian dollar certainly enjoyed the pro-risk environment and reconquered parity. This reflects the global mood and not the situation in Australia. Chinese weakness: Australia is still heavily reliant on the mining industry. More signs of weakness from China including the recent Chinese rate cut, play against the Aussie. Relatively resilient job market: After a … “Australian Dollar – The Struggle With Parity Continues”
AUD/USD: Trading the Chinese Flash PMI Jul 2012
The Chinese Flash Manufacturing PMI is based on a survey of purchasing managers in the Chinese manufacturing sector. Respondents are surveyed for their view of the economic and business conditions in China. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for … “AUD/USD: Trading the Chinese Flash PMI Jul 2012”
UK Pound Gains against Euro, Even with Disappointing Data
The latest economic data out of Britain is disappointing, showing a wider budget deficit than expected. However, even with this disappointing news, the pound is still performing better than the euro today. Pound is mixed today, falling against the US dollar and the Japanese yen as risk appetite flees, and as bad news in Britain puts the pound in a difficult position. However, even with the bad news, the UK pound is … “UK Pound Gains against Euro, Even with Disappointing Data”
Japanese Yen Surges as Risk Appetite Disappears
Japanese yen is surging against its major counterparts today, thanks to renewed concerns about what’s next for the eurozone. Lackluster US earnings aren’t helping much, either. As a result, the yen is in high demand, as one of the most stable currencies right now. Yen is in demand today as Forex traders look for safe haven. Additionally, yen has the advantage of being one of the higher yielding majors right now. With … “Japanese Yen Surges as Risk Appetite Disappears”
Canadian Dollar – Oil is Not a Problem
The Canadian economy continues to be relatively strong, and this is reflected in the value of the loonie, which gradually rose. The big drop in the price of oil during July had a relatively minimal effect on the C$. However, every headline from Europe moves the currency, like all risk currencies. Employment is rising: In … “Canadian Dollar – Oil is Not a Problem”