The Canadian dollar gained today, rising against its US counterpart, as the risk-positive sentiment dominated the Forex markets, driving investors to riskier currencies with higher yield. The combination of spending cuts and tax increases, which was called “fiscal cliff” in the media, concerned market participants as it might push the US economy into recession. Traders are hoping that some sort of a last-minute deal will be made by US politicians … “CAD Strengthens on Hopes Financial Disaster in USA Can Be Avoided”
Month: December 2012
USD Lower vs. Most Majors, Higher vs. EUR & JPY
The US dollar declined against most currencies today on hopes that US politicians will be able to resolve the problems with automatic spending cuts and tax increases that may push the US economy into recession. The greenback managed to gain versus the euro and the Japanese yen. Senate Majority Leader Harry Reid said that negotiations will resume today and he hopes that some last-minute solution will be … “USD Lower vs. Most Majors, Higher vs. EUR & JPY”
Euro Struggles as Risk-Off Returns to Currency Market
Euro is losing ground today against its major counterparts as risk-off dominates the sentiment on the currency market. The fiscal cliff issue in the United States is causing uncertainty in a number of markets, and there are still concerns about what’s coming for the eurozone in 2013. Euro is was lower earlier today as US lawmakers once again prepare meet to wrangle and try to come to an agreement that will help avoid the so-called fiscal … “Euro Struggles as Risk-Off Returns to Currency Market”
UK Pound Gains against Euro on Improved Sentiment
UK pound is gaining today as sentiment improves. The executives confidence survey for December is showing improvement, and there are hopes that the United Kingdom will avoid a triple-dip recession. Like the United States, the United Kingdom is figuring out how to combat a combination of spending cuts and tax increases. However, there are signs of growth in the British economy, and that is helping the pound right now, particularly against the euro. … “UK Pound Gains against Euro on Improved Sentiment”
Ringgit Lifted Along with Market Sentiment by Talks Among US Politicians
The Malaysian ringgit climbed today as negotiations continued in the United States about ways to avoid the fiscal cliff and that gives hopes for investors that a crisis can be avoided. Such hopes lifted the traders’ mood. Senate Majority Leader Harry Reid, who was previously complaining about lack of progress in the discussions about the financial cliff, said yesterday that there are still significant differences between Democrats and Republicans. Yet … “Ringgit Lifted Along with Market Sentiment by Talks Among US Politicians”
AUD Attempts to Rally as China’s Manufacturing Expands
The Australian dollar erased its earlier losses versus the Japanese yen and rose against the US dollar (though it slipped back later) as the data showed an expansion of China’s manufacturing sector. Markit/HSBC China’s manufacturing Purchasing Managers’ Index rose from 50.5 in November to 51.5 in December, the highest level since May 2011. A reading above 50.0 indicates expansion. Previously, the private index was contradicting the government data as one was … “AUD Attempts to Rally as China’s Manufacturing Expands”
Mixed Week for Dollar Ahead of Year-End
The US dollar had mixed performance this week. There was no particularly important news as markets were quiet amid the holiday season and currencies were moving without specific direction for the most part. The notable exception was the Japanese yen, which continued to weaken on intervention speculations. Without anything new, the potential fiscal cliff in the United States remained the major theme that moved the Forex market. It had vastly … “Mixed Week for Dollar Ahead of Year-End”
Fears of US Fiscal Cliff Have Negative Impact on Canadian Dollar
The Canadian dollar weakened today as concerns about the US fiscal cliff were widespread ahead of negations between President Barack Obama and congressional leaders. The currency erased its gains versus the euro and the Japanese yen. Democrats Senate Majority Leader Harry Reid complained that “we have nobody to work with, to compromise” and “I donât know time-wise how it can happen now”. Such comments do not bode well. … “Fears of US Fiscal Cliff Have Negative Impact on Canadian Dollar”
Euro Drops on Uncertainty, Profit Taking
Today is the last full trading day of the year in Europe, and the euro is falling today as uncertainty makes an appearance, and as Forex traders take some of the profits they have on recent euro gains. Euro is heading lower today, losing some ground on the latest developments. A little bit of uncertainty has crept into the markets surrounding the fiscal cliff issue in the United States, and that uncertainty tends to weigh on high beta currencies … “Euro Drops on Uncertainty, Profit Taking”
US Dollar Mixed as Markets Look for Direction
US dollar is mixed today against other major currencies as the markets look for a little more direction. However, things to seem to be leaning toward risk aversion right now, and that could mean a higher dollar against high beta currencies. Right now, Republican leaders are saying that they are open to a new deal on the fiscal cliff issue, and that they are willing to negotiate. With a special … “US Dollar Mixed as Markets Look for Direction”