The Indian rupee weakened today as the growth projections of the International Monetary Fund hurt the market sentiment, deterring investors from riskier currencies of emerging economies. The IMF World Economic Outlook “presented a gloomier picture of the global economy than a few months ago”. Regarding India, the forecast said: The outlook for India is unusually uncertain: for 2012, with weak growth in the first half and a continued investment slowdown. On the bright side, the situation is expected … “IMF Forecast Hurts FX Market, Rupee Weak”
Month: October 2012
Spanish Crisis: Yields Key to Bailout Request
As highlighted in September’s outlook, the tensions between Catalonia and Spain significantly worsened. The independence aspirations of the rich region joined Spain’s endless issues. Nevertheless, Spain hasn’t officially asked for a bailout from the EU, even after the ECB prepared its OMT program especially for Spain. Without a Spanish aid request, the ECB will not … “Spanish Crisis: Yields Key to Bailout Request”
Outlook continues to be mixed for the UK economy and
Opinion is polarised about the UK economy at the moment. On Monday October 8 sterling endured a difficult day on the markets as it dropped 0.6% against the US dollar and stooped to a three-week low against the euro. The US dollar was still, perhaps, basking in the afterglow after a surprise fall in the … “Outlook continues to be mixed for the UK economy and”
CAD Stronger vs. Greenback, Down vs. USD & JPY
The Canadian dollar gained against the euro today as commodities rallied, increasing the attractiveness of the currency. The loonie weakened against the US dollar and the Japanese yen though, as the market sentiment was not very positive today. The Standard & Poorâs GSCI Index of 24 commodities gained 1 percent today, following two sessions of decline. Crude oil jumped as much as 1.4 percent to $90.62 per barrel in New York. The risk sentiment improved … “CAD Stronger vs. Greenback, Down vs. USD & JPY”
AUD/USD: Trading the Australian jobs Oct 2012
The Australian Employment Change indicator, released monthly, is an important leading indicator which is released together with the Unemployment Rate. An unexpected reading in Employment Change can affect the movement of AUD/USD. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at … “AUD/USD: Trading the Australian jobs Oct 2012”
Japanese Yen Gains on Concerns about Global Economy
Japanese yen is gaining today, thanks in large part to concerns about the global economy. Worries about what’s next for the economy have some Forex traders looking for safe haven, and that is boosting the yen today. The International Monetary Fund issued a warning ahead of its meeting with the World Bank, indicating that the situation for the global economy is approaching dire. Between the “fiscal cliff” in the United States, and the increased possibility … “Japanese Yen Gains on Concerns about Global Economy”
Euro Maintains Losses After Draghi’s Speech
The euro maintained its losses today after European Central Bank President Mario Draghi followed the International Monetary Fund in pessimistic outlook for Europe’s economy. On top of that, the French trade balance deficit was bigger than expected. Draghi said today in Brussels: Looking ahead, we expect weak economic activity in the near term and only a very gradual recovery after that. The risks to this outlook are on the downside, mainly … “Euro Maintains Losses After Draghi’s Speech”
US Dollar Firms After Mario Draghi’s Speech
US dollar firmed, especially against the euro, following a speech given by European Central Bank President Mario Draghi to the European Parliament. Draghi’s speech once again draws attention to the economic situation in the eurozone, which can be contrasted with the US economy’s recovery. Even though the US economy is recovering at a rather slow rate, the fact of the matter is that there is some recovery there. The latest unemployment reading … “US Dollar Firms After Mario Draghi’s Speech”
Aussie Rebounds on Europe & Commodities
The Australian dollar climbed today, rebounding from the lowest level in three months, as European financial ministers announced that the permanent bailout fund is operational and as commodity prices went higher. Europe’s finance chiefs were meeting yesterday and after the meeting they announced that the full-time fund is now available for aid of the problem-ridden countries. Prices for iron ore, the main export commodity of Australia, jumped to the highest level in more than … “Aussie Rebounds on Europe & Commodities”
Greek Crisis: Systemic Can Kicking
Endless negotiations between the IMF / EU / ECB troika and the Greek government are expected to conclude during October. Or are they? A lot of can kicking has been done over the last few months, and this exercise could continue once again. A Precedent is Dangerous It remains unclear what Germany wants: Chancellor Angela … “Greek Crisis: Systemic Can Kicking”