The Chinese yuan rose today as the People’s Bank of China increased its reference rate. The general mood on the Forex market was also positive for the currency, allowing it to go higher. The PBoC set its daily fixing 0.12 percent higher at 6.3028 per dollar today. That was the highest level since June 20. Speculations that China is going to add stimulus were also bullish for the yuan. USD/CNY fell … “Yuan Rises as PBoC Sets Fixing Higher”
Month: October 2012
Japanese Yen – Threats Don’t Work. Not Yet.
Dollar/yen moved lower but didn’t go very far. At these levels, Japanese officials are very nervous. Japan replaced its finance minister, and the new chief is intensifying the rhetoric heard from his predecessor. The prospect of elections might be behind the stronger tone that now includes also threats about the independence of the central bank. … “Japanese Yen – Threats Don’t Work. Not Yet.”
Carney’s Speech Makes Canadian Dollar Weak
The Canadian dollar fell yesterday and maintained the losses today as the speech of Mark Carney, Bank of Canada’s Governor, caused speculations that the central bank will refrain from an interest rate hike. The currency reached the lowest level in more than three months against the euro. The last Carney’s speech was much less hawkish that the previous ones. That made traders worried. Previously, Governor’s comments were bullish for the loonie and another … “Carney’s Speech Makes Canadian Dollar Weak”
Australian Dollar Rallies Despite Dovish Minutes
The Australian dollar rose against safer currencies, but retreated against the euro today as the sentiment on the Forex market was positive for commodities with higher yield. The minutes of the last central bank’s policy meeting were a negative factor for the currency. Some experts speculate that Spain may actually avoid asking a bailout. And the European Central Bank may refrain from buying bonds under its asset-purchase program. Adding to the positive mood, … “Australian Dollar Rallies Despite Dovish Minutes”
AUD/USD: Trading the Chinese GDP Oct 2012
The Gross Domestic Product (GDP) is a measurement of the production and growth of the economy, and analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published … “AUD/USD: Trading the Chinese GDP Oct 2012”
US Dollar Pulls Back as Risk Appetite Returns to the Forex Market
US dollar is heading lower today, thanks to a solid injection of risk appetite to the currency markets. All the news seems to be good, and that means that high beta currencies are in demand while the US dollar softens. Greenback is down today as risk appetite returns to the market, boosting high beta currencies, and, particularly, the euro. Most of the focus is on the eurozone right now. Angela Merkel, Germany’s Chancellor, … “US Dollar Pulls Back as Risk Appetite Returns to the Forex Market”
Spain Bailout Rumors Boost Euro
Once again, there are rumors that a Spanish bailout is imminent. The news is sending the euro higher, particularly against the US dollar. According to a story in the Wall Street Journal, a high-placed Spanish official is claiming that the embattled country is on the verge of formally asking for a bailout. The article also indicates that rather than receiving a straight bailout, Spain could end up with a line of credit. That way, … “Spain Bailout Rumors Boost Euro”
Hopes for Growth Buoy Malaysian Ringgit
The Malaysian ringgit, as well as other Asian currencies, advanced today following yesterday’s report that showed an increase of US retail sales. Hopes that China’s slowdown will be not as severe as predicted also buoyed currencies of Asia’s economies. US retail sales grew 1.1 percent in September, beating analysts’ forecasts. Other economic report from the United States this week are also expected to support the positive traders’ … “Hopes for Growth Buoy Malaysian Ringgit”
New Zealand Inflation Slowest Since 1999, NZD Hurt
The New Zealand dropped today after data showed that New Zealand’s inflation last quarter was the slowest in more than a decade. The negative report led to speculations about an interest rate cut from the nation’s central bank. The New Zealand Consumer Price Index rose 0.8 percent in the third quarter of 2012 from a year ago. That was the slowest inflation rate since the fourth quarter of 1999. Consumer prices … “New Zealand Inflation Slowest Since 1999, NZD Hurt”
Swiss Franc – Finding Some Life of its Own
The improvement in the European debt crisis was also felt in the Swiss franc – EUR/CHF moved to a safer distance from the 1.20 peg. So, also USD/CHF began trading somewhat independently of EUR/USD. While this renewed life is nice for traders, it isn’t nice for the franc, which lost ground. With fresh worries from … “Swiss Franc – Finding Some Life of its Own”