As was expected, the Japanese yen dropped this week Shinzo Abeâs Liberal Democratic Party won parliamentary elections, allowing him to push the Bank of Japan for stronger monetary stimulus. The BoJ did not disappoint those who expected more stimulus, expanding its asset purchase program during the policy meeting this week. Additionally, the central bank pledged to pursue more aggressive accommodative policy in the future. The BoJ did not … “Yen Posts Another Weekly Loss, Nothing Surprising”
Month: December 2012
Yen Ends Friday with Gains as Traders Require Safety
The Japanese yen ended Friday with gains as uncertainty about the future of the United States and the European Union drove investors to the perceived safety of Japan’s currency. US politicians canceled the budget discussion, adding to fears that the fiscal cliff will become unavoidable. Italian Prime Minister Mario Monti resigned, returning attention of market participants to the eurozone and its problems. The resulting atmosphere of uncertainty and worries benefited the yen. Of course, the Japanese currency also … “Yen Ends Friday with Gains as Traders Require Safety”
Australian Dollar Slumps as Talks About Fiscal Cliff Unsuccessful
The Australian dollar dropped today as a deadlock in the negotiations about preventing the fiscal cliff in the United States resulted in risk aversion among Forex traders. House Speaker John Boehner had to scrap his “plan B” after his own party rejected the proposal in a vote. Politicians have not much time left before the year-end to find a consensus about avoiding the so-called fiscal cliff. Unless some form of an agreement could be … “Australian Dollar Slumps as Talks About Fiscal Cliff Unsuccessful”
Pound Retreats Further, Bounce Is Possible
The Great Britain pound extended its earlier losses today as economic growth of the last quarter was revised down. Fundamentals were not completely bad though and may yet provide support for the currency. Growth of Britain’s gross domestic product in the third quarter of 2012 was revised negatively from 1 percent to 0.9 percent. That is not bad result at all, considering that GDP was shrinking for three consecutive … “Pound Retreats Further, Bounce Is Possible”
US Dollar Gains Against Majors on Risk Aversion
US dollar is gaining against the other major currencies today as risk aversion sets in, thanks to the fiscal cliff. Right now, Forex traders are ignoring better economic data and instead focusing on what could be a financial disaster in the United States. And that is driving the greenback higher as Forex traders look for safe haven. It’s a bit counterintuitive: There are concerns about the US economy, but the US … “US Dollar Gains Against Majors on Risk Aversion”
Fiscal Cliff Worries Weigh on Canadian Dollar, Even After Data
Yesterday, as the session drew to a close, the loonie showed some fight, gaining as positive economic data gave Forex traders a taste for risk. That has mostly faded by now as the fiscal cliff continues to loom in the United States. Right now, better economic data is being overshadowed by the fiscal cliff. House Speaker John Boehner failed to deliver his “Plan B,” and negotiations over how to fix the fiscal cliff have stalled. … “Fiscal Cliff Worries Weigh on Canadian Dollar, Even After Data”
Turkish Lira Drops as Debt Yield Rises amid Fears
The Turkish lira fell today amid fear of the fiscal cliff in the United States. Such fears spooked investors away from riskier assets and drove higher yield on Turkish debt. US Republican House rejected the plan to allow higher taxes, fueling concerns that there will be no agreement among US politicians. The yield on benchmark Turkish bond increased one basis point to 6.02 percent, posting the fourth day … “Turkish Lira Drops as Debt Yield Rises amid Fears”
50 Top Forex Twitter Accounts
The fast world of forex trading goes hand in hand with the short and quick tweets on Twitter. In 2012, the usage of Twitter has certainly grown for currency traders. Tweets provide immediate news, quick analysis, recommendations about interesting articles, a place to showcase charts and a place to interact with fellows in the world … “50 Top Forex Twitter Accounts”
Pound Weakened by Consumer Confidence & Retail Sales
The Great Britain pound dropped against the US dollar today as consumer confidence deteriorated this month and retail sales were unchanged last month. The currency gained versus the euro. UK retail sales were unchanged in November, while market participants were hoping for an increase by 0.3 percent. The reading was still better than in October (drop by 0.7 percent). GfK consumer confidence index dropped from -22 in November to -29 … “Pound Weakened by Consumer Confidence & Retail Sales”
Yen Sheds Gains as BoJ Suggests Aggressive Monetary Policy
The Japanese yen was rising at the start of today’s trading session, but lost its gains as the Bank of Japan boosted its stimulating measures, confirming expectations that the central bank will conduct more aggressive policy with the new government. The BoJ kept its main interest rate near 0–0.1 percent and expanded its asset purchase program by ¥10 trillion to ¥101 trillion. The bank noted that “overseas economies remain … “Yen Sheds Gains as BoJ Suggests Aggressive Monetary Policy”