The Japanese yen fell today to the lowest level in more than two weeks ahead of the Bank of Japan’s policy meeting. Economists expect that the central bank will add more stimulus, weakening the currency. The Bank of Japan will announce its policy decision later today. The bank boosted its asset purchase program on its previous meeting and analysts expect that it will do so again at today’s meeting. Japan’s … “Yen Weak Ahead of BoJ Meeting Results”
Month: October 2012
ECB Eases Tensions, Sends Dollar Lower
The US dollar was weaker today against most major peers after the European Central Bank eased the risk aversion sentiment on the Forex market as it kept its policy unchanged and reiterated the plan to start buying short-term sovereign bonds. The US currency was little changed versus the Japanese yen. ECB President Mario Draghi left the main interest rate at 0.75 percent and repeated that the central bank is ready … “ECB Eases Tensions, Sends Dollar Lower”
Some Pre-NFP Thoughts
My view on the EUR for the next few days can be described as “range-bound”. Traders continue to await the next step in the euro-zone crisis as Spain continues to hold out on making an official request for support which would be a key step toward OMT by the ECB. At the moment the EUR … “Some Pre-NFP Thoughts”
Pound Gains as BoE Keeps Policy Unchanged
The Great Britain pound strengthened after the Bank of England maintained its main interest rate and the size of the asset purchase program unchanged. Today’s rally followed yesterday’s drop to the lowest level in three weeks against the US dollar. The BoE left its key interest rate at 0.5 percent and the asset purchase facility at £375 billion. Such decision was expected as the central bank promised earlier that it will keep the policy … “Pound Gains as BoE Keeps Policy Unchanged”
Euro Gets Boost from Hope for the Eurozone
Euro is getting a boost today, thanks to improved hopes and expectations for the eurozone. The ECB made its interest rate announcement today, and that has calmed Forex traders to some degree, and boosted the optimism toward the 17-nation currency zone. Mario Draghi, in making the policy announcement about the ECB’s decision to keep interest rates the same, has praised the progress being made in the eurozone. He specifically cited Spain’s good progress, and he … “Euro Gets Boost from Hope for the Eurozone”
Loonie Gets Boost from Appearance of Risk Appetite
Loonie is heading higher against the greenback today, gaining as risk appetite makes an appearance. Canadian dollar is also finding support from commodities today. Today, the ECB announced that it is going to hold the line on interest rates for now, and ECB President Mario Draghi said that the bond buying program it has implemented has been instrumental in easing tensions. This has prompted some risk … “Loonie Gets Boost from Appearance of Risk Appetite”
Australian Retail Sales Miss Expectations, Aussie Touches Monthly Low
The Australian dollar touched the lowest level in a month against its US counterpart today after nation’s retail sales rose less than market participants have expected. The currency managed to rebound after the initial drop and currently trades near its opening level. Australian retail sales rose 0.2 percent in August, while traders have hoped for an increase by 0.5 percent. The data added to concerns caused by yesterday’s poor report … “Australian Retail Sales Miss Expectations, Aussie Touches Monthly Low”
When currency devaluation goes too far
Brazil’s finance minister Guido Mantega coined the term “currency wars”, referring to the situation where various countries make efforts to weaken their currency, thus supporting local exports but also shifting the pain to others, a “beggar thy neighbor” policy. When currency devaluation goes too far, it can have a negative impact on the other side of … “When currency devaluation goes too far”
Swedish Krona Falls Amid Interest Rate Cut Talks
The Swedish krona weakened today amid speculations that the nation’s central bank will cut interest rates on its next policy meeting later this month. Uncertainty about the situation in Europe makes traders avoid riskier currencies, especially those of European countries. The Riksbank (Sweden’s central bank) cut its key interest rate by 25 basis points to 1.25 percent last month. The bank’s policy makers thought that … “Swedish Krona Falls Amid Interest Rate Cut Talks”
CPattern Launches Traders’ Abandonment Detection Service
CPattern, a provider of software solutions in the field of foreign exchange (and other fields as well) launched a new and interesting product: a tool for detecting when traders are about to abandon. The early identification allows brokers to encounter such cases and perhaps to prevent the abandonment. Earlier, CPattern launched a product called Converter, … “CPattern Launches Traders’ Abandonment Detection Service”