The Hungarian forint fell today as nation’s industrial production declined, spurring speculations that the central bank will continue its policy of monetary easing. Industrial output fell 0.1 percent in November from the previous month. On year-over-year basis, productions sank 6.9 percent, demonstrating the sharpest drop since 2009. The Magyar Nemzeti Bank (Hungary’s central bank) was cutting interest rates every month since August and is likely … “Forint Declines with Drop of Industrial Production”
Month: January 2013
Rand Extends Drop on Threat of Strikes in Agricultural Industry
The South African rand continued to decline today as the threat of strikes among agriculture workers deterred investors from buying South Africa’s assets. Last year, the mining sector was the major source of problems for the country’s economy as workers were constantly demanding wage increases. This year, it looks like the agricultural industry wants to follow suit. Continuous labor unrest definitely does not help to attract investors and that is … “Rand Extends Drop on Threat of Strikes in Agricultural Industry”
Euro Pulls Back as Risk Aversion, Eurozone Concerns Weigh
Euro is pulling back today, especially against low beta currencies, as risk aversion sets in. Concerns about global economic growth are weighing on high beta currencies today. Additionally, there are still concerns about the eurozone, and the debt crisis. Even though political leaders in the eurozone have expressed the view that the worst is over for the debt crisis, there are still some concerns about the sluggish … “Euro Pulls Back as Risk Aversion, Eurozone Concerns Weigh”
Growth Concerns Weigh on the UK Pound
UK pound is lower today, falling as growth concerns weigh on the British currency. Worries about whether or not the United Kingdom is ready to grow its way out of its current funk are dominating after the latest retail sales data. The British Retail Consortium is reporting that the Christmas sales for retailers at the end of 2012 rose only a little bit. This news indicates that shoppers aren’t quite … “Growth Concerns Weigh on the UK Pound”
Admiral Markets ForexBall 2012 Ended: Winners Receive $8000
The ForexBall 2012 competition ended the three happy winners (out of 150) received a prize of $8000 for immediate withdrawal. More details are below. Thousands of traders began the competition. Tallinn – Two weeks of intense competition came to an end, and three happy winners emerged: The 150 best traders of the 2012 ForexBall competition, … “Admiral Markets ForexBall 2012 Ended: Winners Receive $8000”
EUR/USD: Trading the German Industrial Production January 2013
The German Industrial Production is an important indicator, and provides analysts and traders with a snapshot of the health of the German manufacturing industry. A reading which is higher than the market forecast is bullish for the euro. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Wednesday at 11:00 GMT. Indicator Background German Industrial … “EUR/USD: Trading the German Industrial Production January 2013”
USD Slows Decline vs. EUR & GBP, Continues to Fall vs. JPY
The Japanese yen was falling yesterday against some majors, including the euro and the pound, but slowed its decline today. Against the yen, on the other hand, the greenback continued to decline. There was no major news at the beginning of this week, so the Forex market was largely digesting the events of the last week. Good US non-farm payrolls sapped the strength of the US currency. Yet the mood of traders remained largely foul after … “USD Slows Decline vs. EUR & GBP, Continues to Fall vs. JPY”
USD/CAD Falls as Ivey PMI Beats Forecasts
The Canadian dollar gained against its US counterpart after the indicator of Canada’s business rose last month more than was expected. At the same time, the loonie retreated versus the euro and the Japanese yen. Richard Ivey School of Business released its Purchasing Managers’ Index yesterday, which showed an increase from 47.5 in November to 52.8 in December. The reading was above the analysts’ forecast of 51.3. A value above 50.0 indicates an expansion … “USD/CAD Falls as Ivey PMI Beats Forecasts”
Looking at the debt crisis through bond yields
In the worst moments of the European debt crisis, bond yields were followed closely to determine which countries are close to the “bailout barrier” of 7%. Where are 10 year bond yields standing now? They have certainly improved, but not always as expected. Since Mario Draghi said he will do “everything to preserve the euro, … “Looking at the debt crisis through bond yields”
Rupiah Weakened by Fears that Fed’s QE May End This Year
The Indonesian rupiah declined today on worries that capital inflows into the country may shrink after the US Federal Reserve suggested that its stimulating program may end this year. The Fed’s hints about an end of quantitative easing worried Forex market participants and that was weakening demand for riskier currencies of emerging markets. Indonesia has its share of problems that hurt the local currency further. The current account deficit … “Rupiah Weakened by Fears that Fed’s QE May End This Year”