Euro is pulling back a bit today, consolidating recent positions and looking for a solid level of support. The main concern right now centers around what’s happening with embattled eurozone countries. Focus has shifted away from the European Central Bank, and plans for bond buying, to the actual situation on the ground in embattled eurozone countries. Instead of looking at the European Stability Mechanism, there are concerns about what is happening in Spain … “Euro Pulls Back and Consolidates Before Heading Higher”
Month: September 2012
UK Pound Gains as Forex Traders Dial Back the Euphoria
Last week, Forex traders showed a great deal of euphoria over developments in Europe and in the United States. Germany’s tacit agreement to the ESM, along with the announcement from the Fed that QE3 would start in the United States, pushed markets higher. Now, though, investors and traders are taking stock and the dynamic has changed a bit. Instead of favoring the eurozone and the single currency, the new state of affairs favors other currencies. The UK pound … “UK Pound Gains as Forex Traders Dial Back the Euphoria”
QE3 Leads to Fifth Weekly Drop of US Dollar vs. Euro
The US dollar slumped this week against most major currencies as the Federal Reserve initiated the third round of quantitative easing. The greenback managed to erase its previous losses against the yen as the Fed’s decision reduced demand for the Japanese currency as a safe haven. The dollar fell for the fifth consecutive week against the euro and the pound. The US central bank announced that it begins purchases of mortgage-backed securities. The Fed also reiterated its pledge … “QE3 Leads to Fifth Weekly Drop of US Dollar vs. Euro”
Japanese Yen Tanks on QE3, Growth Downgrade
Japanese yen is headed lower today, dropping as risk appetite is the focus of many Forex traders following the quantitative easing announcement out of the United States. Earlier, Japanese leaders downgraded the assessment for Japan’s economy, and that is weighing a bit as well. As Forex traders turn to riskier assets, thanks to the latest announcement from Ben Bernanke and the Federal Reserve, the Japanese yen is heading lower. There is no need … “Japanese Yen Tanks on QE3, Growth Downgrade”
Euro at Four-Month High Following Fed QE Announcement
Euro is at a four-month high today, following yesterday’s quantitative easing announcement from the Federal Reserve. The news has devalued the dollar considerably, and given the euro a boost. Ben Bernanke announced an open-ended quantitative easing program which involves buying mortgage back securities and other assets at a rate of $40 billion a month until the Fed determines that the program is no longer needed. Additionally, the promise is of low interest rates … “Euro at Four-Month High Following Fed QE Announcement”
Swedish GDP Growth Revised Down, Krona Dips
The Swedish krona declined today after Sweden’s economic growth in the last quarter was revised down. The currency lost the appeal caused by the improving outlook for the future of the European economy. Swedish gross domestic product expanded 1.3 percent in the second quarter of 2012 from a year ago. The previous estimate was 2.3 percent. The bond-buying program of the European Central Bank improved the outlook for European countries and the Federal Reserve’s QE3 added to risk appetite … “Swedish GDP Growth Revised Down, Krona Dips”
Chile’s Central Bank Keeps Key Rate at 5%, Peso Stays Flat
Yesterday, the Chilean central bank kept its benchmark interest rate unchanged for the eight consecutive month and increased its growth forecast. The Chilean peso was flat today. The Central Bank of Chile kept its main interest rate at 5 percent. The bank noted the positive developments in Europe: Internationally, global financial conditions have improved and the financial tensions in the Eurozone have moderated after the announcements of the European Central Bank. However, there … “Chile’s Central Bank Keeps Key Rate at 5%, Peso Stays Flat”
Traders Need to Understand Market Expectations
In an interview with Jeff of RadBrains, I discussed market expectations, the importance of risk management, why fundamentals matter and other topics. Here’s a quote from this specific segment quoted in the headline: Understanding market expectations helped me a lot. Traders need to know what economical and political events are priced in, and which aren’t. If … “Traders Need to Understand Market Expectations”
Chinese Stimulus Cannot Prevent Landing
Towards a regime change in China, the economic giant is slowing. To counter the slowdown, several Chinese provinces introduced new and huge projects. However, many of these statements seem to contain nothing new, but are just a repetition of old programs. The Chinese slowdown is affected by Europe, but also affects Europe and is a … “Chinese Stimulus Cannot Prevent Landing”
Aussie Gets to Monthly High with Help from Fed
The Australian dollar traded near the highest level in a month against its US counterpart and was at September’s high versus the Japanese yen after the Federal Reserve announced quantitative easing, spurring risk trading on the Forex market. The anticipation of Fed’s monetary decision was driving the FX market for the whole week. The central bank made an announcement of QE3 and growth-related currencies surged to the upside. Now traders’ attention will turn to Europe once again … “Aussie Gets to Monthly High with Help from Fed”