The Japanese yen slumped today after poor macroeconomic data spurred speculations that the Bank of Japan will intervene yet again to weaken the currency. The central bank has been indicating for a long time that the strong currency is dangerous for the economy. Japan’s exports rose just 0.9 percent in September from August, significantly trailing imports that increased as much as 10.0 percent. That led to an increase of the trading deficit from … “Yen Slides as Poor Report Leads to Intervention Speculations”
Month: October 2012
Dollar Loses Less Under Obama than Under George W. Bush
Despite annual deficits topping a trillion dollars, a slow recovery, a high unemployment rate and trillions in freshly created dollars from the Federal Reserve’s printing press (now with the new open ended model), the US dollar is not doing so bad under the 44th President of the US. So far during the Obama’s term, the … “Dollar Loses Less Under Obama than Under George W. Bush”
Euro Keeps Weekly Gains Even as Sentiment Turns Negative
The euro managed to post weekly gains even as the market sentiment turned negative by the weekend. The situation with Spain is still uncertain, though, and that uncertainty can weaken the 17-nation currency in the coming week. The European Union summit did not clear the picture and Spain is still reluctant to ask for a bailout as the austerity measures, demanded in exchange for aid, are very unpopular among Spain’s citizens. Spanish Prime Minister Mariano Rajoy … “Euro Keeps Weekly Gains Even as Sentiment Turns Negative”
Australian Dollar Falls, But Keeps Weekly Gains
The Australian dollar fell yesterday, but ended the week with gains against the US dollar and the Japanese yen. Signs that the global economy is recovering helped the Australian currency to hold ground even when the Forex market sentiment became negative. US existing home sales fell a little to 4.75 million in September from the upwardly revised 4.83 million in August, but posted an increase by 11 percent from a year ago. … “Australian Dollar Falls, But Keeps Weekly Gains”
Loonie Declines to Lowest in Several Months on Poor CPI Growth
The Canadian dollar slumped today as consumer inflation frustrated market participants, being lower than forecast. That fueled speculations that the Bank of Canada will not be able to raise interest rates in the near future. The loonie reached the lowest level in two months against the US dollar and the four-month low versus the euro. The Canadian Consumer Price Index rose 0.2 percent in September, slowing from the August growth by 0.4 percent. … “Loonie Declines to Lowest in Several Months on Poor CPI Growth”
Pound Falls Despite Good Fundamentals
The Great Britain pound headed to the fourth consecutive weekly loss against the dollar today even though macroeconomic data was good. The currency was also down versus the Japanese yen, but will likely end the week with gains. Public sector net borrowing was at £12.8 billion in September, falling from £13.5 billion a year ago. Analysts have though that it would stay unchanged. Current budget … “Pound Falls Despite Good Fundamentals”
Chilean Central Bank Does Not Say About Need for Weak Peso
The Chilean peso gained against the euro today as the nation’s central bank left its monetary policy interest rate unchanged and did not hint that it wants the currency to depreciate. The peso weakened against the US dollar. The Central Bank of Chile left its key interest rate at 5 percent today. The bank did not speak about appreciation of the peso, like it was doing previously, mentioning the weakness of the dollar … “Chilean Central Bank Does Not Say About Need for Weak Peso”
US Dollar Edges Higher Against Most Majors
US dollar is edging higher against most majors right now, gaining as risk aversion enters the picture. One of the big drivers is the continued uncertainty about Spain and the eurozone. However, the latest US company earnings news isn’t helping matters, either. Greenback is getting a boost today, thanks in large part to uncertainty over what’s next in the eurozone drama. On the second day of the EU summit, Spanish PM Mariano … “US Dollar Edges Higher Against Most Majors”
Euro Slips on Lack of Progress in the Eurozone
Euro is slipping against other majors this morning, thanks in large part to the lack of progress being made in the eurozone. There is a great deal of disappointment right now about Spain, and when the country will finally ask for aid. Many Forex traders and others expected that Spain would ask for bailout help this week. However, earlier today, Mariano Rajoy, Spain’s Prime Minister, indicated that there … “Euro Slips on Lack of Progress in the Eurozone”
Canadian Dollar – Reached its Peak?
The Canadian dollar reached a 14 month high against the greenback during September with USD/CAD bottoming out at 0.9632. But later on, things changed against the loonie. The forces moving the currency have somewhat shuffled: Oil: C$ has shown much more sensitivity to the price of oil – Middle East tensions on one hand and … “Canadian Dollar – Reached its Peak?”