The Great Britain pound advanced on hopes that the United Kingdom will emerge from recession. Traders turned their attention to the GDP report, released today, which is expected to show growth. Bank of England Governor Mervyn King said that UK economic growth can be a bit inconsistent: And the zig-zag pattern of quarterly growth rates of GDP that we have seen this year is likely tocontinue, as we … “Pound Gets Stronger on Hopes for Economic Growth in UK”
Month: October 2012
Fed Unlikely to Change Policy or Forecast
After the launch of QE3, the Fed is likely to leave policy unchanged. In addition, also the forecasts aren’t expected to budge at this time, says John Kicklighter of DailyFX. In the interview below, Kicklighter also discusses the impact of the upcoming US elections on volatility, the islands dispute on the Chinese and Japanese economies … “Fed Unlikely to Change Policy or Forecast”
Euro Drops on Economic News Out of Germany
Euro is heading lower today, dropping as the latest economic news out of Germany weighs on the 17-nation currency. It’s also not helping that Spain continues to be a source of concern. German data is causing disappointment today. The latest PMI data for Germany is lower than expected, and the latest Ifo survey is weaker as well. Germany represents that regional powerhouse, and the euro relies heavily on good performance out … “Euro Drops on Economic News Out of Germany”
US Dollar Index Inches Higher on Risk Aversion
The US dollar index is a little bit higher today, gaining as risk aversion makes an appearance. Over night, following a rebound by riskier assets, the situation has deteriorated, and now the greenback has the upper hand. Earlier, high beta currencies saw gains. The early portion of the Asian session showed risk appetite. However, markets are struggling a little bit now, thanks to weakness in Europe, and concerns over what’s next. Even … “US Dollar Index Inches Higher on Risk Aversion”
Yuan Rises as Manufacturing PMI Improves
The Chinese yuan advanced today as the preliminary index of China’s manufacturing rose this month, giving hope that the biggest Asian economy will avoid hard landing and will continue to support global growth. The HSBC/Markit manufacturing Purchasing Managers’ Index rose from 47.9 in September to 49.1 in October. The value remained under 50.0, though, indicating contraction. Adding to the negative factors, Europe continues to struggle amid the crisis. China’s export-driven economy … “Yuan Rises as Manufacturing PMI Improves”
Swedish Krona Weakens as Consumer Confidence Deteriorates
The Swedish krona dropped today as Sweden’s consumer confidence was far worse than expected and data from other European countries suggested that the economy of the eurozone remains fragile. The consumer confidence index declined to -2.9 in October from 2 in September. Analysts have expected it to be just a little lower at 1.7. Other confidence indicators were also lower. The poor data from Sweden added to negative reports from … “Swedish Krona Weakens as Consumer Confidence Deteriorates”
GBP/USD: Trading the British GDP October 2012 view
British Gross Domestic Product (GDP) is a key release and is published each quarter. GDP measures production and growth of the economy, and is considered by analysts as one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the pound. Here are all the details, and … “GBP/USD: Trading the British GDP October 2012 view”
Slacking Global Growth Makes NZ Dollar Less Appealing
The New Zealand dropped today as worries that global economic growth is slacking deterred Forex market participants from riskier currencies. The kiwi reached the lowest level in more than a month against the US dollar. Spain’s economy contracted for the fifth consecutive quarter. The poor data followed the credit downgrade of five Spanish regions by Moody’s Investor Service. Europe became a bringer of bad news yet again. The United States were … “Slacking Global Growth Makes NZ Dollar Less Appealing”
Bank of Canada Remains Hawkish, Loonie Goes Higher
The Canadian dollar jumped today against the euro after the Bank of Canada maintained its key interest rate and issued a hawkish statement. The loonie was down against the yen as the Japanese currency was surprisingly strong today, following yesterday’s losses. The Canadian currency trimmed its decline versus the US dollar, but remained somewhat below the opening level. The BoC kept its overnight rate (the main interest rate) at 1 percent … “Bank of Canada Remains Hawkish, Loonie Goes Higher”
UK Pound Loses Ground on Growing Risk Aversion
After seeing some increases earlier, the UK pound is back to losing ground as risk aversion rises. Concerns about global economic growth, and disappointments about earnings news from stocks, are weighing on the pound. Earlier, the UK pound got a boost from a decline in business delinquencies. Also, there was a little more risk appetite, and that was supporting the pound as well. Now, though, things have changed. Worries … “UK Pound Loses Ground on Growing Risk Aversion”