The US dollar slumped today to the lowest level since May against the euro and the Great Britain pound and to the lowest since February versus the Japanese yen after the Federal Reserve announced that it is going to start the third round of the asset purchase program known as quantitative easing. The Fed said in today’s statement: To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with … “QE3 Announced, Dollar Suffers”
Month: September 2012
Won Remains Weak Even as BoK Maintains Key Rate
The South Korean won fell today and remained weak even after the nation’s central bank maintained its key interest rate, frustrating analysts who predicted an interest rate cut. The Bank of Korea left its main rate at 3 percent. The BoK has cut the lending rate by 25 basis points in July and the majority of analysts believed that the bank would perform the same move this month. The central bank disappointed … “Won Remains Weak Even as BoK Maintains Key Rate”
Loonie Gets a Boost on Better Economic Data Before Falling Back
Canadian dollar is getting a boost today, heading higher as economic data in Canada shows a measure of improvement. Home prices in Canada rose 0.1% in July, and the economy has never been as badly off as the US economy. Also helping the loonie is the increase in oil prices. Loonie was a little bit higher earlier today, getting a boost as better economic data in Canada contrasted with the continued sluggishness seen in the United States. … “Loonie Gets a Boost on Better Economic Data Before Falling Back”
Swiss Franc Falls as SNB Committed to Keep Ceiling
The Swiss franc dropped today after the Swiss National Bank kept its monetary policy unchanged and reiterated the pledge to keep the cap of 1.20 francs per euro. The Swiss currency extended its bearish movement against the euro and halted the rally versus the US dollar. The SNB said that it will continue to enforce the minimum exchange rate “with the utmost determination”. The central bank explained its stance: The Swiss franc is … “Swiss Franc Falls as SNB Committed to Keep Ceiling”
Euro Hits a Wall as Uncertainty Returns
Euro is hitting a bit of a wall as uncertainty makes an appearance today. Many Forex traders are in wait and see mode until the Federal Reserve comes out with its interest rate and economic policy announcement. While interest rates aren’t likely to change, many are interested to find out whether the United States will see another round of stimulus. Euro has been advancing rather well in recent days, … “Euro Hits a Wall as Uncertainty Returns”
USD/JPY:Trading the UoM Consumer Sentiment September 13 2012
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy, and a reading that is higher than forecast is bullish for the US dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Friday … “USD/JPY:Trading the UoM Consumer Sentiment September 13 2012”
QE3 Now? Really?
Ben Bernanke’s speech at Jackson Hole at the end of August was somewhat vague, a common practice of the Federal Reserve. Many found hints for QE3 in the upcoming FOMC Meeting on September 12-13th. In addition, weak Non-Farm Payrolls led many participants to see QE3 coming now. Expectations are very high once again, a situation … “QE3 Now? Really?”
No More Risk Positive Catalysts from the Euro-zone in
The ratification of the ESM by Germany leaves void any risk-positive catalysts out of the Euro-zone over the coming weeks, says Christopher Vecchio of DailyFX. A “white glove” treatment for Spain would be too much to ask from the reluctant core. In the interview below, Vecchio discusses Europe, the Fed’s open-ended option, the waking up of … “No More Risk Positive Catalysts from the Euro-zone in”
RBNZ Keeps Rates Stable, Kiwi Moves Higher
The New Zealand dollar gained versus the US dollar and kept yesterday’s gains against the Japanese yen today after the Reserve Bank of New Zealand maintained its key official cash rate unchanged. New Zealand’s central bank left the main interest rate at 2.5 percent. In the rate statement, Governor Alan Bollard mentioned the economic slowdown of its trading partners: New Zealandâs trading partner outlook remains weak. Several … “RBNZ Keeps Rates Stable, Kiwi Moves Higher”
Falling Unemployment Claims Improve Outlook for Pound
The Great Britain pound rallied to the highest level since May against the US dollar and rose versus the Japanese yen today after UK unemployment claims unexpectedly fell last month. The currency gained even as the unemployment rate rose. The Office for National Statistics reported that the jobless claims fell 15,000 in July, while a small increase was expected. At the same time, the unemployment rate went up by 0.1 percentage point to 8.1 … “Falling Unemployment Claims Improve Outlook for Pound”