Euro is headed lower again, thanks to more economic data that indicates the eurozone is likely to remain in an economic contraction. Even good news out of Germany can’t change the subdued economic outlook for the entire 17-nation currency region.
Month: February 2013
Economic Expectations Weigh on Canadian Dollar
Canadian dollar is lower against its major counterparts today, dropping as economic expectations weigh on the loonie. Between GDP data to be released tomorrow, and a Bank of Canada announcement next week, there aren’t high hopes for loonie performance. Tomorrow, Statistics Canada is expected to share data about economic performance in December 2012. The report is expected to show a lower GDP, indicating contraction. Reports are expected to show … “Economic Expectations Weigh on Canadian Dollar”
Franc Mixed as Swiss Economy Expands
The Swiss franc fell versus the US dollar and rose against the euro today. The Swiss economy unexpectedly grew last quarter, suggesting that the strong currency is not that detrimental to economic growth. Swiss gross domestic product expanded 0.2 percent in the fourth quarter of 2012 from the third quarter, when the economy grew 0.6 percent. This was a nice surprise as economists have expected no growth. The data suggests … “Franc Mixed as Swiss Economy Expands”
NZ Dollar Climbs with Business Confidence
The New Zealand dollar advanced today as business confidence climbed in February. Building permits declined last month, but this did not deter the rally of the currency. ANZ business confidence jumped from 22.7 in January to 39.4 in February. It is the highest level in 19 months. Building permits fell 0.4 percent in January on a seasonally adjusted basis after rising 9.4 percent in the prior month. The currency paid attention to the good … “NZ Dollar Climbs with Business Confidence”
EUR/USD: Trading the US ISM Manufacturing PMI
The ISM Manufacturing PMI (Purchasing Manager Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the US. Traders should treat the index as a market-mover, which can affect the direction of EUR/USD. A reading which is higher than … “EUR/USD: Trading the US ISM Manufacturing PMI”
Yen Fluctuates After Abe Appoints Kuroda as Next BoJ Governor
The Japanese yen fell today after Prime Minister Shinzo Abe appointed Haruhiko Kuroda as the next Bank of Japan Governor. The currency bounced to the opening level as of now. Market participants speculated that President of the Asian Development Bank Kuroda, who was considered to be more aggressive on interventions than other candidates, will be the next BoJ governor. Such speculations proved true as Abe indeed nominated him the next central … “Yen Fluctuates After Abe Appoints Kuroda as Next BoJ Governor”
MXN Gains as Sanchez Does Not See Reasons for Interest Rate Cut
The Mexican peso gained today as Manuel Sanchez, a member of the central bank’s board, said that he is not supporting an interest rate cut. The market sentiment was also supportive for the currency. Sanchez said yesterday in an interview to Bloomberg: At this moment in time I donât see a case for a rate cut. I would like to see a better behavior of inflation. The rigidity that inflation expectations have maintained for many, many years away from … “MXN Gains as Sanchez Does Not See Reasons for Interest Rate Cut”
US Dollar Weakens as Optimism Helps Risk Appetite
US dollar is weakening today as optimism makes an appearance on the markets, and risk appetite improves. However, even though greenback is mostly down against other majors, it is holding ground against commodity currencies, which continue to drag on gold’s lackluster performance. Greenback is heading a little lower against its European counterparts as better news helps risk appetite a little bit. Solid demand for Italian bonds … “US Dollar Weakens as Optimism Helps Risk Appetite”
Euro Higher Now, But is the Currency Still Vulnerable?
Euro has recovered some of its earlier losses against the US dollar, but the 17-nation currency remains vulnerable to the UK pound and the Japanese yen. Even though the latest fears about Italy have been assuaged slightly, there are still concerns about the eurozone’s economic vulnerability, as well as the health of countries in the periphery. In spite of concerns about what’s next for Italy’s government, demand for bonds was strong at a recent auction. However, … “Euro Higher Now, But is the Currency Still Vulnerable?”
USD/JPY:Trading the US GDP (Second Release)
US Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. Thus, publication of the US GDP (Second Release) could have a significant impact on USD/GDP. A reading which is better than the market forecast is bullish for the dollar. Here … “USD/JPY:Trading the US GDP (Second Release)”