The Russian ruble weakened amid risk aversion caused by unwillingness of European Central Bank President Mario Draghi to back up his promise to address the issues of the eurozone by any real action. The ruble felt the pressure of traders’ disappointment after the ECB policy meeting. Crude oil, the main source of Russiaâs export revenue, declined 0.9 percent to $88.07 a barrel in New York. Fears that Germany’s Bundesbank would oppose the ECB actions … “Ruble Falls as Market Sentiment Poor After ECB Policy Decision”
Month: August 2012
CAD at Record High vs. EUR
The Canadian dollar jumped to the record high against the euro today after the European Central Bank disappointed Forex market participants. The ECB refrained from any serious steps to address the issues of the eurozone. It is not surprising that the loonie gained on the euro, falling versus the US dollar and the Japanese yen at the same time. FX traders expected some noticeable actions from the ECB after central bank’s President Mario Draghi … “CAD at Record High vs. EUR”
Euro Drops on Draghi Disappointment
Euro is dropping today, thanks in large part to the disappointment over Mario Draghi‘s policy announcement from the ECB. Many had expected the ECB to announce measures to help ease the sovereign debt. At the very least, there were expectations that the ECB would buy Spanish and Italian bonds. However, Draghi’s “whatever it takes” rhetoric might just that: Rhetoric. Instead of announcing any changes, the ECB is staying the course. … “Euro Drops on Draghi Disappointment”
The QE3 Camp is Missing a Simple Reality
The QE3 camp seems to be missing a simple reality – Treasury yields sit near record lows, says Ilya Spivak of DailyFX. A severe credit crunch could ignite Fed action though. In the interview below, Spivak discusses Europe, QE3, the impact of North Dakotan oil and more topics. The interview was conducted before the ECB … “The QE3 Camp is Missing a Simple Reality”
Risk Aversion Sends Japanese Yen Higher, Officials Fret
Japanese officials are fretting about the strength of the Japanese yen again. Recent risk aversion is sending the yen higher against other majors today. Concerns about the eurozone are on the rise yet against, and the yen is being used as a safe haven. After the strong statement recently, many Forex traders had expected some decisive action from the European Central Bank. However, when it came right down … “Risk Aversion Sends Japanese Yen Higher, Officials Fret”
Draghi Didn’t Deliver – Overestimated Spain and Underestimated Germany
Mario Draghi lifted the euro last week, only to crush it now. While he did discuss buying bonds in the open markets, he limited such a move to conditions and committees. The market wanted action, not words, and didn’t buy this verbal intervention. The verbal intervention seemed disastrous by itself: Saying that the ECB would buy short term … “Draghi Didn’t Deliver – Overestimated Spain and Underestimated Germany”
Pound Rises vs. Dollar as BoE Does Not Add Stimulus
The Great Britain pound rose against the US dollar and trimmed its losses versus the euro and the Japanese yen today after Bank of England refrained from expanding its stimulating program. The BoE announced today that it kept its main interest rate and bond purchasing program unchanged: The Bank of Englandâs Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee … “Pound Rises vs. Dollar as BoE Does Not Add Stimulus”
Aussie Rallies on Growing Retail Sales & Trade Surplus
The Australian dollar rallied today as the positive macroeconomic data led to speculations that the Reserve Bank of Australia would leave its interest rates unchanged at the policy meeting next week. Australian retail sales rose 1.0 percent in June, month-on-month. The increase was above the expected change of 0.6 percent and the revised May advance of 0.8 percent. The trade balance posted the surplus of A$9m in June. That is not big, but much … “Aussie Rallies on Growing Retail Sales & Trade Surplus”
USD/JPY: Trading the US Non-Farm Payrolls
The Non-Farm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for USD/JPY. Published on Friday at 12:30 GMT. Indicator Background … “USD/JPY: Trading the US Non-Farm Payrolls”
No QE from Fed Means Stronger Dollar
The US dollar jumped today after the Federal Reserve decided, following the two-day policy meeting, to refrain from performing a new round of quantitative easing. The Fed was not very optimistic about economic growth. The Federal Open Market Committee said in its statement: The Committee expects economic growth to remain moderate over coming quarters and then to pick up very gradually. Consequently, the Committee anticipates that the unemployment rate will … “No QE from Fed Means Stronger Dollar”