The Bank of England maintained its main interest rate and the size of the asset purchase program today. That allowed the Great Britain pound to gain against the euro and to erase gains versus the US dollar. The currency remained weak against the Japanese yen. The BoE announced today: The Bank of Englandâs Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock … “BoE Monetary Policy Decision Benefits Sterling”
Month: November 2012
Euro Drops as ECB Keeps Interest Rates Unchanged
The euro dropped today against other most-traded currencies after the European Central Bank refrained from cutting interest rates and predicted that economic growth of the eurozone will remain weak. The ECB left its main interest rate at 0.75 percent at today’s policy meeting. Some market participants have hoped that the central bank would ease its monetary policy and were disappointed by the bank’s decision. Usually, stable rates … “Euro Drops as ECB Keeps Interest Rates Unchanged”
US Dollar Mixed against Major Currencies
US dollar is mixed against major currencies today as markets look for direction after yesterday’s rout of risk assets. Today, there has been some measure of recovery, but there are still enough doubts to help the greenback in some cases. Against the euro, the US dollar is gaining ground solidly. Even though the Greek parliament accepted austerity measures that allow it to continue receiving help from … “US Dollar Mixed against Major Currencies”
Canadian Dollar Finds Some Support
Canadian dollar is fining some support today as risk appetite makes a cautious reappearance in the markets. Loonie is inching higher against many other major currencies, thanks to a little more optimism, and some strength. Yesterday, the Canadian dollar closed lower as risk assets experienced a rout. Concerns about whether or not Republicans and Democrats in the US Congress can come together to avoid a fiscal cliff had all of the markets reeling. … “Canadian Dollar Finds Some Support”
USD/JPY: Trading the UOM Consumer Sentiment November 2012
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy, and a reading that is higher than forecast is bullish for the US dollar. Here are all the details, and 5 possible outcomes for … “USD/JPY: Trading the UOM Consumer Sentiment November 2012”
Draghi Could Cut Rates, or Hint on Cut in December
Consensus of economists points to no change in the ECB’s rates. However, there is room for surprise. Worrying signs about Germany and France were already seen beforehand. They now seem more serious and not a onetime event, especially as Draghi clearly expressed worries about Germany, and reversed the rally of EUR/USD. The situation in Germany, … “Draghi Could Cut Rates, or Hint on Cut in December”
AUD Gains on NZD on Employment Data
The Australian dollar jumped against its New Zealand peer as the employment report from Australia was much better than the data from New Zealand. The Aussie retreated against the Japanese yen amid the risk-negative market sentiment and was flat versus the greenback . Australia’s employment grew by 10,700 jobs in October from the preceding month, while analysts have thought it would be little changed. The unemployment rate stayed at 5.4 … “AUD Gains on NZD on Employment Data”
Yen Gains on Concerns About Europe’s Crisis & US Fiscal Cliff
The Japanese yen gained today, extending yesterday’s rally, amid concerns about the situation in Europe and after Barack Obama won the US presidential election, spurring talks about the danger of the fiscal cliff. The victory of Obama was positive for the risk sentiment in the long term as it means that Ben Bernanke will stay as a chairman of the Federal Reserve and will maintain his extremely accommodative monetary policy. In the short term though, market participants … “Yen Gains on Concerns About Europe’s Crisis & US Fiscal Cliff”
Euro Pulls Back with Greece in Focus
Euro is pulling back in Forex trading today, no real surprise with all the uncertainty and worrying going on right now. One of the big issues in the eurozone — Greece — is back in focus, and it’s not helping that a fiscal cliff is looming in the United States as well. Now that the world’s focus has been pulled away from the US Presidential Election, concerns about what’s happening in the eurozone are returning. … “Euro Pulls Back with Greece in Focus”
Pound Drops on Disappointing Data
The Great Britain pound dropped today as today’s macroeconomic reports were rather bad, spurring talks about further monetary easing from the Bank of England and fears that the UK economy will slid back into recession. Industrial production fell 1.7 percent in October from September, more than analysts have anticipated — 0.6 percent, while fell 1.7 percent in October, below the expectations of 0.3 percent. The Halifax … “Pound Drops on Disappointing Data”