The Great Britain pound erased its earlier losses today after Bank of England Governor Mervyn King signaled that the central bank may refrain from lowering interest rates even as outlook for the UK economy remains gloom. King said today: Many of the conditions necessary for a recovery are in place, and the Monetary Policy Committee will continue to do all it can to bring about that recovery. As I have said many … “Pound Rallies on King’s Comments”
Month: August 2012
Aussie Gains on Increasing Home Loans
The Australian dollar erased the losses versus its US counterpart and gained against the euro after the report showed that the number of home loans in Australia rose in June, giving another evidence that Australia’s economy is growing. The number of dwelling finance commitments rose 1.3 percent (seasonally adjusted) in June from May. The figure was below expectations of 2.1 percent, but better than the May reading that showed the drop … “Aussie Gains on Increasing Home Loans”
Japanese Yen Gains the Upper Hand as Traders Show Caution
Japanese yen is gaining today, heading higher as Forex traders show caution. Concerns about what’s next for the eurozone are once again front and center in the markets. Yen is gaining as Forex traders reduce their riskier positions in favor of a more measured approach to the situation. Once again, the more cautious Forex traders are turning to the yen because of its stability. Yen is considered a safe haven, and with a bit … “Japanese Yen Gains the Upper Hand as Traders Show Caution”
Euro Slips as Traders Await Central Bank Moves
After three days of rallying, the euro is slipping as traders await moves from the ECB to support the 17-nation currency. Last week, Mario Draghi indicated that the ECB is ready to take some of the burden of Italy and Spain, but many are still waiting for something substantial. For now, the euro is down almost across the board against other major currencies. Euro is struggling against the US dollar, as well as the UK … “Euro Slips as Traders Await Central Bank Moves”
Lira Falls as Industrial Production Shrinks
The Turkish lira ticked down today as the negative macroeconomic data from Turkey deterred Forex traders from buying the currency. The Turkish economy looks weak and that does not help the lira. Industrial production declined 2 percent in June from May on a seasonally adjusted basis. The data spurred speculations that the Turkish central bank would ease its monetary policy to support the failing economy. Turkey’s economy indeed requires … “Lira Falls as Industrial Production Shrinks”
Loonie Supported by Domestic Fundamentals & Traders’ Optimism
The Canadian dollar rallied yesterday and kept its gains today as the attractiveness of the currency was backed up by the good economic data from Canada and the positive sentiment on the Forex market. Traders felt optimistic as Germany ceded to the pressure from other European countries and no longer opposes the bond-purchasing plan of the European Central Bank. Investors were happy to hear that the major obstacle was conquered. Federal Reserve Bank of Boston President Eric … “Loonie Supported by Domestic Fundamentals & Traders’ Optimism”
AUD/USD: Trading the Australian jobs Aug 2012
The Australian Employment Change indicator, released monthly, is an important leading indicator which often has a significant impact on the markets, and an unexpected reading could affect the movement of AUD/USD. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details and 5 possible outcomes for AUD/USD. … “AUD/USD: Trading the Australian jobs Aug 2012”
Positive Fundamentals in Norway Benefit Krone
The Norwegian krone advanced today after the set of good macroeconomic reports from the country added to the attractiveness of the currency. The attractiveness that was boosted further by the positive sentiment on the Forex market. Norwegian factory output rose 0.8 percent in June from May, when it advanced 0.6 percent. The actual value was above the forecast of 0.4 percent. Industrial production jumped as much as 4.3 percent last month, year-on-year, following the 1.7 … “Positive Fundamentals in Norway Benefit Krone”
US Dollar Pulls Back as Risk Appetite Makes an Appearance
US dollar is pulling back today, thanks in large part to the appearance of risk appetite in the financial markets. Risk appetite has been building since the end of last week, and the greenback is lower as Forex traders look for better returns for their money. Toward the end of last week, the situation improved for global markets. US payroll data showed that the economy added more jobs than expected in July, and the ECB announced … “US Dollar Pulls Back as Risk Appetite Makes an Appearance”
UK Pound Gets a Little Help from Economic Data
UK pound is getting a bit of a boost today, thanks to the latest industrial production data. There was a decline, true, but the decline in production for June was less than expected. The news, along with a bit of risk appetite, is helping the UK pound against low beta currencies like the US dollar and the Japanese yen. Industrial production in the United Kingdom declined by 2.5 per cent, month over month, in June. … “UK Pound Gets a Little Help from Economic Data”