Earlier, the Canadian dollar was slightly lower, dropping on concerns about the eurozone economy and worries about the US fiscal cliff. The latest jobs report out of the United States, though, is changing that situation, and risk appetite is creeping back into the markets. Statistics Canada reported that the Canadian economy added 59,000 jobs in November, and the jobless rate fell slightly. This happened at the same time that the US economy … “Loonie Gets Boost as Jobs Improve in the United States”
Month: December 2012
Euro Drops as Economic Outlook Comes Into Focus
Euro is dropping today, falling to a nine-day low against the US dollar as Forex traders consider the disappointing economic outlook for the eurozone. A great deal of the concerns is coming from news out of Germany. Earlier today, Germany’s central bank cut its economic growth outlook. As the largest economy in the 17-nation eurozone, Germany has a great deal of influence on the performance of the euro. It didn’t help that this revised growth outlook … “Euro Drops as Economic Outlook Comes Into Focus”
Ben Bernanke Will Not Be Impressed by the NFP Report
The headlines of the Non-Farm Payrolls report were positive: a better than expected gain in jobs, and a drop of the unemployment rate to the lowest since December 2008. However, the details of the report provide the Federal Reserve enough ammunition for further easing next week. Ben Bernanke already clearly said that the unemployment rate … “Ben Bernanke Will Not Be Impressed by the NFP Report”
Yen Rises as Earthquake Strikes Japan, Gains Limited
The Japanese yen advanced today after an earthquake struck Japan, reminding the catastrophe of 2011, when a tremor was followed by a tsunami and a disaster on a nuclear plant. The yen tends to advance during times of fear. A tsunami alert was issued today after a magnitude 7.3 earthquake hit the country. The previous disaster caused Japan to shift away from nuclear power, leading to increasing imports of fuel and resulting in the change of the trade balance from net … “Yen Rises as Earthquake Strikes Japan, Gains Limited”
Ringgit Drops on Fears of Recession
The Malaysian ringgit fell today, following other Asian currencies in losses, as fears of recession in the United States and the European Union deterred investors from buying riskier assets of emerging economies. Traders fear that the fiscal cliff will push the US economy into recession. Europe’s economy is already in decline and the European Central Bank predicted that it will stay that way next year. US nonfarm payrolls that … “Ringgit Drops on Fears of Recession”
US GFT Clients Transferred to GAIN Capital
U.S. based forex broker GFT is closing its retail business in the U.S. Its clients will be transferred to GAIN Capital (forex.com), which has acquired the retail business of the company. The transfer happens on December 7th 2012. While consolidation is natural part of a maturing industry, the closure of GFT in the US is … “US GFT Clients Transferred to GAIN Capital”
NZD/JPY Rises to Highest Since March as RBNZ Keeps OCR Stable
The New Zealand dollar was strong today, rising to the highest level since September versus the US dollar and the highest since March against the Japanese yen, after the Reserve Bank of New Zealand left its benchmark Official Cash Rate unchanged. The RBNZ left its main interest rate at 2.5 percent. Governor Graeme Wheeler said in the statement: Economic growth has slowed in recent months and has been accompanied by low … “NZD/JPY Rises to Highest Since March as RBNZ Keeps OCR Stable”
Pound Weakens as BoE Keeps Policy Unchanged, Climbs vs. Euro
The Great Britain pound dropped today against the US dollar and the Japanese yen after the Bank of England kept its official bank rate and the asset-purchase program unchanged. The sterling jumped versus the euro. The BoE left its monetary policy unchanged at today’s meeting, maintaining the main interest rate at 0.5 percent and the asset purchases at £375 billion. The decision to keep the policy stable was made even after the growth forecast was revised … “Pound Weakens as BoE Keeps Policy Unchanged, Climbs vs. Euro”
US Dollar Index Gains Slightly on Euro Weakness
Even though the US dollar’s performance against its major counterparts is mixed, the dollar index is a little bit higher, mostly due to current euro weakness. There are plenty of mixed signals on the Forex market right now. Worries about what’s next for the eurozone are weighing on risk appetite a bit, although there is enough hope elsewhere that currencies like the Canadian dollar and the UK pound are … “US Dollar Index Gains Slightly on Euro Weakness”
Euro Slightly Lower on Concerns about Future ECB Cuts
Even though the European Central Bank kept rates on hold for now, there are still concerns about the future. With the eurozone economy moving sluggishly, and the sovereign debt saga far from over, there are worries that the ECB will have no choice but to cut rates in the future. The euro is slightly lower against the US dollar right now, but it isn’t showing much reaction overall. … “Euro Slightly Lower on Concerns about Future ECB Cuts”