US dollar is gaining ground today, heading higher on demand for safer assets. Additionally, the fact that the US economy continues to show progress is helping the greenback against other currencies. The ADP report in the United States showed that new private sector jobs grew by 162,000 for the month of September. This was better than expected, and indicates that the US economy is making some improvements — even if they … “US Dollar Gains on Demand, ADP Report”
Month: October 2012
Euro Slips against US Dollar on Recession Concerns
Euro is slipping today, heading lower as data indicates that the eurozone most likely slipped into recession during the third quarter. Also weighing on the euro is the continued efforts by Spain to put of the inevitable before it finally asks for aid. Once again, business activity and new orders in the eurozone appeared to decline. The composite index from Markit Economics showed that September came in at 46.1, which is down from … “Euro Slips against US Dollar on Recession Concerns”
Rand Dips as Investors Speculate About Lower Interest Rates
The South African rand declined today as poor domestic fundamentals added to concerns about the stalling global economic growth, leading to speculations that South Africa’s central bank may lower interest rates on its next policy meeting. Gill Marcus, Governor of the South African Reserve Bank, said that the decision to keep rates steady on the last meeting “was not an easy one”. Such comments made traders speculate that … “Rand Dips as Investors Speculate About Lower Interest Rates”
More Bad News for Australian Dollar
The Australian dollar fell to the lowest level in a month against the US dollar and the Japanese yen as the Australian trade balance report was unexpectedly poor, spurring speculations that another interest rate cut is coming. Australia’s trade balance posted a deficit of A$2.03 billion in August, while the expected figure was A$0.69 billion. On top of that, the July reading was revised negatively from the deficit of A$0.56 billion to the trade gap of A$1.53 … “More Bad News for Australian Dollar”
UK Fundamentals Unexpectedly Bad, Pound Loses Strength
The Great Britain pound fell versus the euro and pared its earlier rally versus the US dollar today as unexpectedly poor Britain’s macroeconomic indicators reduced the appeal of the currency. The sterling managed to retain its gains against the Japanese yen. The Nationwide House Price Index fell 0.4 percent in September. That is instead of the expected increase by 0.1 percent. Moreover, the previous rise was revised down from 1.3 percent to 1.1 … “UK Fundamentals Unexpectedly Bad, Pound Loses Strength”
Bernanke Erodes Dollar’s Strength
The US dollar was weaker against most major currencies today after Federal Reserve Chairman Ben Bernanke reiterated in yesterday’s speech his pledge to keep the monetary policy accommodative. The greenback managed to outperform the Japanese yen, which was undermined by speculations about an intervention from the Bank of Japan. The Chairman explained his view: We expect the economy to continue to grow. Our concern is not really a recession. Our concern … “Bernanke Erodes Dollar’s Strength”
Japanese Yen Drops on Intervention Talk
Japanese yen is heading lower today as risk appetite makes an appearance. Also weighing on the yen is more talk about possible intervention to keep the yen weak against its currency counterparts. Japan has a new finance minister, and he appears ready to follow in the footsteps of Jun Azumi. The new finance minister, Koriki Jojima, said that policy makers stand ready to “take bold actions” if they think … “Japanese Yen Drops on Intervention Talk”
USD/JPY: Trading the ISM Services PMI Oct 2012
The ISM Non-Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers, excluding the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the US. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible … “USD/JPY: Trading the ISM Services PMI Oct 2012”
Ringgit Stronger on Improving US Manufacturing & Bernanke’s Speech
The Malaysian ringgit was stronger today against the US dollar after yesterday’s report showed an unexpected improvement of US manufacturing and as Federal Reserve Chairman Ben Bernanke confirmed that the central bank is going to maintain accommodative policy. Yesterday, the Institute for Supply Management released its PMI report, showing that the US manufacturing sector expanded in September for the first time in four months. Bernanke spoke about the Fed’s monetary policy … “Ringgit Stronger on Improving US Manufacturing & Bernanke’s Speech”
Euro Gains on Signs that Spain is Ready for a Bailout
For weeks now, eurozone leaders and others have been waiting for Spain to ask for a bailout. Spain has even been encouraged to ask for a bailout. But the country’s leaders have been reluctant. Now, it looks as though Spain might be ready, and the euro is heading higher as a result. Signs now point to the possibility that Spain is ready to ask for a bailout. Spain’s recent budget release indicates that the country is … “Euro Gains on Signs that Spain is Ready for a Bailout”