One of the big questions being asked right now is this: What’s next for the euro? While many Forex traders act as though the eurozone will pull through, the truth is that there has been no real progress in the debt crisis situation, and no plans for preventing something similar from happening in the future. The big concern right now is what happens if Spanish Prime Minister Mariano Rajoy … “Could the Euro Be Threatened by Rajoy’s Refusal to Ask for Aid?”
Month: October 2012
Europe – Recession Looks Deeper, Also in the Core
Outside the countries that are in the limelight due to the crisis, the picture isn’t encouraging. This can be clearly seen in PMIs and business sentiment indicators. So, if investing in the euro is like investing in the core countries, the value is certainly dropping. Without any GDP releases in October, these major figures will have a … “Europe – Recession Looks Deeper, Also in the Core”
Is the US Dollar Winning the Race to the Bottom?
Greenback is heading lower again today, dropping as risk appetite comes into focus. But, even without the good news that is driving risk appetite right now, there is a good chance that the US dollar would be showing weakness, thanks in large part to the current race to the bottom for currencies. Right now, some currencies are in a race to the bottom as countries attempt to stimulate their economies by devaluing … “Is the US Dollar Winning the Race to the Bottom?”
Rising Employment Positive for Australian Dollar
The Australian dollar rose for the fourth consecutive session against its US counterpart and advanced versus the Japanese yen today after the employment data showed that Australian employers added last month more jobs that was estimated by analysts. Seasonally adjusted employment increased by 14,500 in September, following the drop by 9,100 in August. The forecast change was 5,100. At the same time, the unemployment rate increased by 0.3 percentage point to 5.4 percent. … “Rising Employment Positive for Australian Dollar”
Swedish Krona Dips vs. Euro on CPI
The Swedish krona declined against the euro today as consumer price inflation last month was lower than analysts estimated, raising worries about the impact of the crisis on the nation’s economy. The Consumer Price Index fell from 0.7 percent in August to 0.4 percent in September. Market participants have hoped for 0.6 percent. Worries about ability of Europe to emerge from crisis also weighed on the krona. EUR/SEK was up from 8.6274 … “Swedish Krona Dips vs. Euro on CPI”
Spanish Crisis: Catalonia is Drifting Away
Among the many issues that the Spain encounters, (including from rating agencies) the future of Catalonia is perhaps the hottest topic that could impact a decision on a bailout. The Spanish government’s dealing with this rich and recently more separatist region hasn’t been optimal. Update. Catalonia’s national day (“Diada”) on September 11th attracted an audience … “Spanish Crisis: Catalonia is Drifting Away”
GBP Higher vs. USD, Loses Gains vs. EUR & JPY
The Great Britain pound was mixed today. The sterling rose a little versus the US dollar, but erased its earlier gains against the euro and the Japanese yen. The European crisis increases attractiveness of the UK currency, but the domestic problems limit investors’ interest in the pound. Prime Minister David Cameron talked about the necessity of the United Kingdom to act quickly if it wants to keep up with the world economy. Cameron said: … “GBP Higher vs. USD, Loses Gains vs. EUR & JPY”
Carry Trade Will Not Carry You Away
We should all know by now that forex trading isn’t easy money. In addition, also the relatively easy path of riding on a carry trade is not the best bet at the moment. For a very long time, traders could be quite passive: by buying a currency with a high interest rate and selling another … “Carry Trade Will Not Carry You Away”
IMF Comments Weigh on Euro
The latest comments from the International Monetary Fund are weighing on the euro right now, turning small gains into losses as Forex traders consider the future of the eurozone, and what, realistically, needs to happen in order to solve the European debt crisis. Euro is mostly lower right now, thanks to the latest information from the IMF. The International Monetary Fund has stated that Europe’s banks may need to sell more assets through … “IMF Comments Weigh on Euro”
US Dollar Moves Sideways as Other Currencies Look for Gains
US dollar is moving sideways today, thanks to surprisingly good earnings news from some quarters, and many treating the European debt crisis as though it is almost resolved. Surprisingly, aluminum giant Alcoa beat earnings estimates and that has some thinking that maybe China isn’t having the problems that everyone seems to think it is. Earnings season is underway, for the United States, and the tone is … “US Dollar Moves Sideways as Other Currencies Look for Gains”