On the same day that the German constitutional court makes its ruling (September 12th), one of Germany’s closest allies will also face a critical decision. Citizens in the Netherlands will go to the polls in general elections after the current government collapsed on proposed austerity measures. Sentiment against the European Union and its rules is … “Euro Skepticism Could Grow in the North”
Month: September 2012
Australian Dollar Falls with China’s Imports
The Australian dollar retreated today as home-loan approvals in Australia unexpectedly fell and China’s imports declined, damping prospects for Australian exports. The number of Australia’s dwelling finance commitments fell 1 percent in July from June, seasonally adjusted, while a little increase was forecast by experts. China’s imports slid 2.6 percent in August from a year ago. Most of Australian exports go to China, therefore the drop of imports is negative for Australia’s … “Australian Dollar Falls with China’s Imports”
Euro Weakens as Troika Withholds Bailout for Greece
The euro weakened today as the troika refused to provide a next round of bailout for Greece as the indebted country was continuously failing to stick to the targets that were set as conditions for the rescue package. The austerity measures that Greece has already performed were not enough to convince the troika that the country will be able to reduce its debt. The politicians will continue to negotiate today and the Hellenic Republic may still get aid. The German … “Euro Weakens as Troika Withholds Bailout for Greece”
All Eyes on Karlsruhe
The German constitutional court in Karlsruhe is set to rule on the legality of the ESM bailout fund on September 12th. While chances are high that the court will give a green light, it is important to understand the background and the significant implications for both options. The event in itself already caused an aggravation … “All Eyes on Karlsruhe”
ECB Bond Buying & US Payrolls Lead to Fourth Weekly Gain of Euro
The euro jumped this week, posting the fourth consecutive weekly gain. The major driving factors for the rally were the policy meeting of the European Central Bank and US nonfarm payrolls that came out worse than expected. Speculations about the ECB policy meeting and whether the central bank would announce a bond-buying plan were driving the euro for the whole week. The central bank indeed described its asset-purchase program that should help … “ECB Bond Buying & US Payrolls Lead to Fourth Weekly Gain of Euro”
Aussie Rallies with Global Stocks as Traders Put Their Hopes on Central Banks
The Australian dollar rallied today as global stocks advanced on hopes that central banks of developed nations will spur economic growth. The Australian currency is linked to growth, therefore it profited from such hopes. The currency lost gains versus the euro. The Thomson Reuters/Jefferies CRB Index of commodities advanced 0.2 percent, posting the first gain since August 31. The rally boosted the appeal of the Aussie as a commodity currency. The MSCI Asia … “Aussie Rallies with Global Stocks as Traders Put Their Hopes on Central Banks”
Employment Data Boost CAD vs. USD
The Canadian dollar jumped to the highest level in a year against its US counterpart today as Canada’s employment growth was much higher than expected. US employment was disappointing and that also added to bullish bias of the Canadian currency. The loonie fell versus the euro and the Japanese yen. Canadian employers added 34,300 jobs in August, following the drop by 30,400 in July. Economists expected an increase by just 9,900. The unemployment rate remained at 7.3 … “Employment Data Boost CAD vs. USD”
Euro Surges as Bond Buying Program Receives Approval
Euro is receiving quite a boost today as markets show their approval of the most recent plan to help save the euro. However, even with this plan in place, there are still plenty of hurdles for the eurozone. Yesterday, Mario Draghi and the ECB announced that there would be an unlimited bond buying program. The news immediately relieved pressure on Spanish and Italian bonds. The news has been greeted with enthusiasm, with … “Euro Surges as Bond Buying Program Receives Approval”
US Dollar Heads Lower as Week Comes to a Close
US dollar is heading lower as the week comes to a close, heading down as Forex traders remain optimistic about the eurozone. Euro is still getting some love from the fact that the ECB has released a bond purchase program, and that means a lower greenback. Interesting forces have been at work on the US dollar recently. There are concerns about the US economy. Even though estimates for job growth for August … “US Dollar Heads Lower as Week Comes to a Close”
Bad NFP Not Enough for QE3
The market are reacting USD negative, EUR positive at the moment as EUR has risen from pre announcement level of 1.2715 to 1.2735. The main question now is how Chairman Bernanke reacts to this announcement. Is he disappointed by the NFP number or happy about the unemployment number. This will go a long way as … “Bad NFP Not Enough for QE3”