The US dollar closed lower against almost all of the major currencies today after Federal Reserve Chairman Bern Bernanke hinted at the potential quantitative easing. Bernanke was speaking at the Jackson Hole Symposium today and traders have been waiting to him to give hints about the future actions of the Fed. The Chairman was lamenting about the high unemployment level and the need to address it. He said that asset purchases (the policy known … “Bernanke’s Speech Drives Dollar Down”
Month: August 2012
Euro Gains against Dollar, Even with Jobless Data
Euro is gaining today, heading higher as it consolidates recent gains, especially against the US dollar. Even with mixed economic data in the eurozone, the 17-nation currency has the upper hand today. Eurozone unemployment has hit a new high, with the July reading at 11.3 per cent. The news comes as the latest inflation data shows an increase of 2.6 per cent in August. The competing views of what is happening with … “Euro Gains against Dollar, Even with Jobless Data”
US Dollar Lower as Jackson Hole Meeting Gets Under Way
US dollar is lower today, dropping as the central banker symposium in Jackson Hole gets underway. Ben Bernanke is expected to speak, and that is to be the highlight of the conference — especially since ECB President Mario Draghi has pulled out of the conference. Ben Bernanke‘s remarks are highly anticipated, since he is the Chair of the most powerful central bank system in the world. United States monetary policy goes beyond … “US Dollar Lower as Jackson Hole Meeting Gets Under Way”
Rand Goes Higher While Traders Waiting for Bernanke’s Speech
The South African rand advanced today as mood of Forex traders shifted yet again and hopes for stimulus returned to them. The Jackson Hole Symposium makes the FX market volatile and unpredictable as the market sentiment changes all the time depending on what investors expect to be said on the meeting. Fed Chairman Ben Bernanke is going to speak at Jackson Hole today. Market participants are speculating whether he would hint at quantitative easing … “Rand Goes Higher While Traders Waiting for Bernanke’s Speech”
Pound Stronger as House Prices Rise
The Great Britain pound was stronger today after the report showed that UK house prices grew this month more than was anticipated. Consumer confidence remained depressed, but that did not deter the sterling from rallying. The Nationwide House Price Index rose as much as 1.7 percent in August. The increase followed the drop by 0.8 percent in the previous month and was above expectations of just 0.1 percent rise. … “Pound Stronger as House Prices Rise”
Forex myths: What troubles the forex world?
Forex or foreign currency exchange is a currency trading center where a trader buys a currency in exchange of a different currency. Forex is a highly lucrative market that has very high liquidity capability and functions around a globally centralized trading system, operating 24 hours a day and 7 days a week. Moreover, forex trading … “Forex myths: What troubles the forex world?”
Aussie Remains in Decline, Fundamentals Not Supportive
The Australian dollar weakened today as fundamentals were not supportive for the currency both domestically and abroad. The currency was in decline since about mid-August, though it is still far from the lows reached at the beginning of June. Australian building approvals slumped 17.3 percent in July from a year ago on a seasonally adjusted basis. The drop was much bigger than the expected 4.8 percent and the June fall of 1 percent. Analysts think … “Aussie Remains in Decline, Fundamentals Not Supportive”
Gains of Euro Lost as Spain Postpones Request for Bailout
The euro gave up its earlier gains today as Spain disappointed the Forex market participants, postponing its request for a bailout. After so much talking about the aid, such move was not well-received by the FX market and the euro lost its ground. There was so much speculation about the rescue for Spain that it was almost taken for granted by some traders. The indebted country is still likely to ask … “Gains of Euro Lost as Spain Postpones Request for Bailout”
Koruna Hurt by Politics
The Czech koruna dropped today on worries that the government would not be able to implement measures for reducing the nation’s budget deficit because of the political opposition. Prime Minister Petr Necas called for lawmakers to support his plan to raise taxes. He said that the there is no reason for the government to stay in power unless it would able to reduce the current deficit below the limit of 3 percent set by the European Union. … “Koruna Hurt by Politics”
Without an immediate Recession Threat, QE3 Hints are Unlikely
The recent evidence from the Beige Book shows that economic activity is gradually picking up. This lowers the chances for any hints about QE3 from Bernanke, says David Song of DailyFX. In the interview below, Song discusses the situation in the US, the chances for a disappointment from the ECB, a potential Grexit and more … “Without an immediate Recession Threat, QE3 Hints are Unlikely”