Euro is looking for direction right now, and it seems likely that it will be all about the headlines this week. Confusion about what the ECB is planning to do — and what Germany is on board with — is hindering the euro a bit as Forex traders look for clues about what will happen next. This week, there will be plenty of interest in the news. We’ll be … “Euro Looking for Direction; Headlines Likely to Dominate this Week”
Month: August 2012
How would a war between Iran and Israel affect the
The conflict between Israel and Iran could escalate and if this grim scenario becomes a reality, the crude oil price will not be unaffected. While a war between these two countries is not imminent, the recent warnings reiterated by Israel’s Prime Minister and the adamant attitude of Iranian officials keep this issue actual. There are … “How would a war between Iran and Israel affect the”
Australian Dollar Higher as Traders Await RBA Statement
Aussie is higher today, gaining against the US dollar ahead of tomorrow’s statement from the Reserve Bank of Australia. There is interest in what RBA officials will say, since there are expectations that an interest rate cut could be on the way. The Australian dollar has been somewhat strong in recent weeks, but RBA officials seem to be worried about the strength of the Down Under currency. On Friday, RBA … “Australian Dollar Higher as Traders Await RBA Statement”
Japanese Yen – Deflation Could Pave Road for Intervention
The Japanese yen made steady gains against the dollar and the euro, enjoying the safe haven status. This is changing and could continue to change. The return of Japan to the dreaded deflation justifies an intervention, at least a stealth one. However, Japanese authorities showed their weakness in the past, and it’s hard to blame … “Japanese Yen – Deflation Could Pave Road for Intervention”
Franc Posts Weekly Gains vs. Dollar & Yen, Flat vs. Euro
The Swiss franc rallied this week against the US dollar and the Japanese yen. The currency has been appreciating since the second half of July. As one could expect, the franc remained flat against the euro near the ceiling level of 1.20 francs per euro. The Swiss fundamentals were mixed this week. On the negative side, the Producer Price Index fell 0.3 percent in July, following the decline with the same rate in June. The market … “Franc Posts Weekly Gains vs. Dollar & Yen, Flat vs. Euro”
Central Bank of Chile Mentions Peso, Intervention Is Coming?
Chile’s central bank mentioned the rally of the Chilean peso in its monetary policy statement, leading to speculations that the bank would expand its dollar-purchase program to weaken the appreciating currency. The Central Bank of Chile left its main interest rate at 5 percent on August 16. The central bank said in the press release accompanying the decision that “the peso has appreciated”. The currency has not been mentioned in the previous statements. The analysts interpreted … “Central Bank of Chile Mentions Peso, Intervention Is Coming?”
CAD Closes Weaker on Slowing Inflation
The Canadian closed lower against its US peer, following three days of gains, and also weakened versus the euro today after Statistics Canada reported that monthly inflation fell unexpectedly last month. The news triggered sell-off of the Canadian currency. Canada’s Consumer Price Index declined 0.1 percent in July from June on a seasonally adjusted basis, following the 0.2 percent drop in June. That was the third consecutive monthly … “CAD Closes Weaker on Slowing Inflation”
Euro Drops in Spite of Merkel’s Recent Comments
Even though German Chancellor Angela Merkel has implied support for ECB efforts to save the euro, the 17-nation currency continues to struggle today. Euro is heading lower, and there isn’t a lot that can be done about it for now. Really, the major moves are expected next week — after Merkel meets with other eurozone leaders. German Chancellor Angela Merkel popped up in Canada to end her … “Euro Drops in Spite of Merkel’s Recent Comments”
US Dollar Higher on Expected Volatility, Better Data
US dollar is higher today, gaining on continued concerns about the situation in Europe, as well as better economic data in the United States. Greenback is gaining as speculation about a Greek exit from the eurozone is speculated on, and as the latest consumer sentiment numbers are released. It’s been a relatively quiet week, but things are about to pick up soon. German Chancellor Angela Merkel is back from vacation, … “US Dollar Higher on Expected Volatility, Better Data”
Finnish Euro Exit: ESM Seniority could be the Breaking
The Finnish flirt with a euro exit continues. Another anti-euro statement came from a senior Finnish minister: Foreign minister Erkki Tuomioja said that “We have to face openly the possibility of a euro-break up”. Finland’s Europe minister later distanced the country from that statement, saying that this speculation on the euro breakup doesn’t reflect the government’s position … “Finnish Euro Exit: ESM Seniority could be the Breaking”