The Canadian dollar fell versus the US dollar and the Japanese yen yesterday and kept its losses today amid fears of the fiscal cliff in the United States. Earlier, the currency advanced on the positive market sentiment. The loonie remained strong against the euro. US politicians are unable to come to an agreement and that means automatic tax increases and spending reductions may be initiated, threatening the US recovery. The resulting fears hurt Canada’s major export — … “Canadian Dollar Erases Gains amid Fears of US Fiscal Cliff”
Month: November 2012
Greenback Gets a Boost on Eurozone Uncertainty
US dollar is heading higher today, finding support as uncertainty about the eurozone weighs on the 17-nation currency and sends Forex traders looking for a little stability. Greenback is getting a bit of a boost today as uncertainty about the eurozone continues to weigh on the 17-nation currency. Even though an agreement was reached in the situation with Greece, after the initial excitement faded, Forex traders started getting a look at the rest of the eurozone. There are still … “Greenback Gets a Boost on Eurozone Uncertainty”
Euro Heads Lower as Focus Moves Off Greece to the Wider Eurozone
Even though eurozone leaders have agreed to a Greek deal, problems remain in the wider eurozone. With focus returning to the long-term for the entire currency region, the euro is heading lower right now. European leaders came to a deal, reducing Greek debt by 40 billion euros, and making it possible for the embattled country to receive needed loans to keep it afloat. The news gave the euro a bit of a boost in earlier trading, but much … “Euro Heads Lower as Focus Moves Off Greece to the Wider Eurozone”
Forint in Danger from Interest Rate Cut
The Hungarian forint strengthened today, but may yet retreat as the nation’s central bank lowered its main interest rate amid fears of recession in the European Union. The Magyar Nemzeti Bank (the central bank of Hungary) announced today: The Monetary Council of the Magyar Nemzeti Bank reduced the central bank base rate by 25 basis points to 6.00%, in effect from 28 November 2012. The decision was expected by market analysts. The bank lowered … “Forint in Danger from Interest Rate Cut”
NZ Dollar Rebounds Despite Trade Deficit
The New Zealand dollar managed to rebound today, following yesterday’s drop, even as the New Zealand trade balance deficit was bigger than predicted. The agreement to provide a bailout for Greece was the likely reason for the rally of the risky New Zealand’s currency. The New Zealand trade balance posted the deficit of NZ$718 million in October. The reading was below the September’s NZ$775 million, but far above the predicted NZ$490 million. Yet the accord regarding … “NZ Dollar Rebounds Despite Trade Deficit”
USD/JPY: Trading the US New Home Sales Nov 2012
US New Home Sales is released monthly, and provides analysts with important data the health and direction of the housing sector. A higher reading than the market prediction is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Wednesday at 15:00 GMT. Indicator Background US New Home Sales provides analysts … “USD/JPY: Trading the US New Home Sales Nov 2012”
To some degree, the Fed has already ‘allowed’ for
The Federal Reserve has already taken the fiscal cliff into account, with QE3 (aka QE-infinity). Bernanke and his colleagues could extend Operation Twist, says Michael Derks of FxPro. In the interview below, Derks discusses the cliff, the postponement of the “day of reckoning” for Greece’s debt and other topics that move currencies. Michael joined FxPro in May … “To some degree, the Fed has already ‘allowed’ for”
Pound Gains as Mark Carney Appointed as Next Head of BoE
The Great Britain pound pared yesterday’s losses versus the US dollar and the Japanese yen today after the announcement that Mark Carney, the current Bank of Canada’s Governor, will be the next head of Britain’s central bank. The decision to appoint a foreigner as the head of England’s central bank surprised Forex market participants. The news was negative for Canada’s currency, but positive for Britain’s sterling. Experts think that it is good to invite … “Pound Gains as Mark Carney Appointed as Next Head of BoE”
Canadian Dollar Falls After Carney Appointed as Head of BoE
The Canadian dollar weakened yesterday as Bank of Canada Governor Mark Carney was appointed as a new head of the Bank of England, creating uncertainty about leadership in the Canadian central bank. The currency was firmer today against the US dollar and the euro, but continued to fall versus the Japanese yen. The BoE announced yesterday that Carney will be the new Governor of the central bank. It is yet unclear who will lead the BoC … “Canadian Dollar Falls After Carney Appointed as Head of BoE”
Japanese Yen Gains as Uncertainty Returns
Japanese yen is heading a bit higher today, gaining as risk aversion sets in and as Forex traders look for a little certainty and stability. Concerns about what’s next in the eurozone, plus the possibility that fiscal cliff talks in the United States will stall, are weighing on risk assets. Right now, the yen is heading a little bit higher. Even with the expectations that there will be even more easing from … “Japanese Yen Gains as Uncertainty Returns”