The New Zealand dollar rose as the expanding manufacturing sector and improving consumer confidence lead to speculations that the nation’s central bank will keep interest rates stable. The BNZ-BusinessNZ seasonally adjusted PMI rose 4.8 points from December to 55.2 in January. It was the highest reading since May. The ANZ-Roy Morgan Consumer Confidence measure climbed 2.7 points to 121 in February, reaching the 32-month high. The New Zealand economy was … “NZ Dollar Jumps with Manufacturing & Consumer Confidence”
Month: February 2013
Pound Drops After Inflation Report
The Great Britain pound fell after the Inflation Report of the Bank of England. Additionally, the BoE Governor Mervyn King suggested that the economy will likely remain weak and will face “big challenges”. King indicated that policy makers are not shy with pushing quantitative easing: If necessary, we will do more. We must recognize, however, that there are limits to what can be achieved … “Pound Drops After Inflation Report”
Euro Holds Its Own after Industrial Production Numbers
Indications that the worst really is over for the eurozone continue to roll in, despite worries about Spain and Italy. The latest industrial production data supports the idea that the eurozone economy is strengthening, albeit modestly. The latest industrial production numbers are in, and there has been an increase of 0.7 per cent in December. Eurostat reports that industrial production picked up in the eurozone, led by Germany. The December figure is … “Euro Holds Its Own after Industrial Production Numbers”
Swedish Krona Rises as Riksbank Does Not Join Currency War
The Swedish krona climbed today as the central bank left interest rates unchanged, refraining from easing the monetary policy to subdue the currency’s strength. The krona appreciated after the bank did not give hints that it is going to join the currency war. The Riksbank kept its main interest rate at 1 percent today. The decision was not unexpected, but market participants were a bit surprised that the statement did … “Swedish Krona Rises as Riksbank Does Not Join Currency War”
US Dollar Index Falls as Greenback Performs Mixed
US dollar index is dropping today, but the greenback performance overall is mixed as Forex traders look for direction, and try to figure out what, exactly, the G-7 countries feel about the recent sharp fall by the Japanese yen. While the dollar index is lower today, the greenback is mixed against its major counterparts. As has been usual lately, the greenback is down against the euro. However, following yesterday’s … “US Dollar Index Falls as Greenback Performs Mixed”
Aussie Invigorated by Improving Consumer Confidence
The Australian dollar advanced today as consumer sentiment improved this month, reducing incentive for the central bank to lower its interest rates. The Westpac Melbourne Institute Index of Consumer Sentiment rose 7.7 percent in February. The rise followed the 0.6 percent increase in January. Investors trimmed their bets on an interest rate cut at the next meeting of the Reserve Bank of Australia. It is still likely that the central bank will slash rates, … “Aussie Invigorated by Improving Consumer Confidence”
EUR/USD: Trading the German GDP February 13 2013
German Gross Domestic Product (GDP) is a key release and is published each quarter. GDP measures production and growth of the economy, and is considered by analysts as one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the euro. Here are all the details, and … “EUR/USD: Trading the German GDP February 13 2013”
Yen Pauses Downfall as G7 Has Mixed Views on Currency’s Weakness
The Japanese yen rose today as the members of the Group of Seven had conflicting views on the efforts of the Japanese government to cub the gains of currency, leading to the view that the yen will pause its downfall. Forex market participants were worried ahead of the G7 meeting if Japan will be labeled as a currency manipulator. According to some unnamed officials, the yen was indeed discussed during the meeting. The Group released statement, saying: We reaffirm … “Yen Pauses Downfall as G7 Has Mixed Views on Currency’s Weakness”
Franc Rises Despite Wishes of Swiss Policy Makers
The Swiss franc rallied today even as Swiss policy maker were complaining about the strength of the currency, hinting that they are going to keep the franc weak. The currency erased gains versus the euro and fell against the yen. Swiss National Bank President Thomas Jordan told reporters that the franc is “still at a high level even at the current price”. He defended the central bank’s measures to keep the currency weak, claiming … “Franc Rises Despite Wishes of Swiss Policy Makers”
G20 unlikely to slay the gold rally
Despite recent price setbacks gold is unlikely to be negatively effected over the long run by the G7’s commitment not to engage in currency wars as the wording of the statement leaves plenty of scope to use some of the most potent instruments of currency manipulation. If anything it looks like a sop to some … “G20 unlikely to slay the gold rally”