The Australian dollar slumped today after the Australian Treasury voiced concern about the strength of the currency and signaled that the central bank may ease its monetary policy further in order to contain the Aussie’s appreciation. The Treasury said: If the high exchange rate is judged to be inconsistent with keeping the economy close to non-inflationary full employment, we could expect that monetary policy would be eased in response, putting downward … “Treasury Concerned About Aussie’s Strength, Currency Falls”
Month: August 2012
Baht Falls as Central Bank Cuts Growth Outlook
The Thai baht fell today as Thailand’s central bank cut its growth forecast for this year, spurring fears that the external negative influences would overcome domestic economic growth. The Bank of Thailand decreased its growth estimate for 2012 from 6 percent to 5.7 percent. The central bank has kept its key interest rate unchanged at 3 percent on its last policy meeting in an attempt to preserve economic growth. … “Baht Falls as Central Bank Cuts Growth Outlook”
Inflating Away Debt – Future of Monetary Policy?
As mentioned beforehand, the Federal Reserve doesn’t have many tools to move the economy. Also most other central banks have already tried various conventional and unconventional tools to get out of the crisis. So did governments. Nearly 4 years after Lehman Brothers collapsed, recovery is slow or nonexistent. The world is still deleveraging from the … “Inflating Away Debt – Future of Monetary Policy?”
NZ Dollar Rallies with Milk Prices
The New Zealand dollar rose against the US dollar and the Japanese yen yesterday and maintained its gains today as the rally of commodities improved outlook for New Zealand exports, meaning that the currency will be in demand. Fonterra Cooperative Group Ltd. showed on its GlobalDairyTrade website that prices for delivery of whole-milk powder in October climbed 7.3 percent, reaching the highest level in two months. The Thomson Reuters/Jefferies CRB Index of commodities gained … “NZ Dollar Rallies with Milk Prices”
Hopes for End of Crisis Bring Euro Higher
The euro was higher today against all of most-traded currencies as investors speculated that the European leaders would take steps to ease the negative influence of the sovereign-debt crisis and would seek a way out of the current detrimental economic state. German Chancellor Angela Merkel reiterated her pledge to work with the European Central Bank to find a cure for the debt disease that plague the European Union. The comments alleviated fears that Germany would … “Hopes for End of Crisis Bring Euro Higher”
Risk Appetite Appears and Sends US Dollar Lower
Risk appetite is making a somewhat cautious appearance on the markets today. Equities in Europe and the United States are mostly higher, and there is optimism regarding the ECB’s inevitable moves to stave up complete collapse in the eurozone. As a result, the US dollar is moving a little lower today. Greenback is down against the European currencies today as risk-on puts in an appearance. UK pound and euro are both gaining against the US dollar. … “Risk Appetite Appears and Sends US Dollar Lower”
Japanese Yen Lower on Easing Expectations
Japanese yen is lower today, sliding against major currencies as traders express their expectations for monetary easing by the Bank of Japan. Between US Treasury yields and possible BOJ easing, the yen is likely to continue losing ground to other currencies. Bank of Japan officials stand ready to ease if needed, in order to help boost the economy. Monetary easing is a deliberate method of weakening the currency in an effort at economic stimulus. Many … “Japanese Yen Lower on Easing Expectations”
Ringgit Falls on Europe, Supported by Domestic Growth
The Malaysian ringgit fell today, following other Asian currencies in decline, on fears that the European debt crisis would hurt demand for exports from Asia. The losses were limited as growth of the Malaysian economy beat forecasts. Malaysia’s gross domestic product grew 5.4 percent in the second quarter of this year from a year ago, following the expansion by 4.9 percent in the second quarter. The report surprised economists pleasantly as they were expected … “Ringgit Falls on Europe, Supported by Domestic Growth”
Sterling Advances with Unexpected Increase of Retail Sales
The Great Britain pound jumped today, erasing its earlier losses versus the US dollar, as retail sales unexpectedly increased, giving hope that the UK economy is in a better shape than was previously considered. UK retail sales advanced 0.3 percent in July from the previous month on a seasonally adjusted basis. That was a pleasant surprise for market participants as the consensus forecast predicted no change. Moreover, the June growth … “Sterling Advances with Unexpected Increase of Retail Sales”
USD/CAD: Trading the Canadian Core CPI
Canadian Core CPI measures the change in the price of goods and services. Core CPI excludes eight volatile components, notably food and energy, production and growth of the economy. This helps make the reading more reliable and useful to analysts. A reading that exceeds the market forecast is bullish for the Canadian dollar. Here are all … “USD/CAD: Trading the Canadian Core CPI”