While most analysts who have been polled do not expect any changes in interest rates when the ECB meets tomorrow, we all are anxiously anticipating the comments made by President Draghi following the meeting. The EUR has moved higher by more than 5 big figures since the January meeting. Given such an aggressive move, it is … “ECB Preview: Will Draghi drag the euro down?”
Month: February 2013
Yen Bounces After Touching Multi-Year Lows
The sell-off of the Japanese yen paused today after the currency reached lows not seen in several years, but bounced and rose against some majors, including the dollar, the euro and the pound. Today’s rally is not likely to be anything more than a small correction after the huge downfall. Nothing has changed for the currency fundamentally. The Japanese government is still keen on weakening the currency and a new Bank of Japan Governor will likely … “Yen Bounces After Touching Multi-Year Lows”
Pound Mixed Ahead of BoE Meeting
The Great Britain pound fluctuated today as traders felt uncertainty ahead of tomorrow’s policy decision of the UK central bank. At the same time, the sterling outperformed the euro, which was weakened by problems of the eurozone. The Bank of England will announce its monetary policy decision tomorrow. Most analysts believe that the bank will leave the policy unchanged: the key interest rate will remain at the record low 0.5 percent and the asset purchase program … “Pound Mixed Ahead of BoE Meeting”
Euro a Little Lower as it Consolidates ahead of ECB
Euro appears to be in consolidation mode right now, and is a little bit lower against other majors right now as a result. It’s also not helping that some doubts, helped by renewed concerns about sovereign debt, are creeping into the picture. There have been a few renewed fears regarding sovereign debt in the eurozone today. Yields are rising a bit, and that has some concerned about the ability … “Euro a Little Lower as it Consolidates ahead of ECB”
Shadow of Spain and Italy looms over the Euro zone
As anyone with any experience of the Foreign Exchange markets will tell you, just as we manage to convince ourselves that something is about to happen or will continue to happen (e.g a trend or theme developing or continuing ) then the market, for whatever reason, does an about turn and catches you out. And … “Shadow of Spain and Italy looms over the Euro zone”
US Dollar Gains as Economic Concerns Return
US dollar is heading higher today against its major counterparts, gaining ground as economic concerns return to the world stage. For now, greenback is up against high beta currencies as risk aversion makes an appearance. Broad weakness from other currencies is providing support for the US dollar right now. Concern about the pace of the global economic recovery is once again a driving factor. The poor retail sales … “US Dollar Gains as Economic Concerns Return”
Thai Baht Weakened by Threat of Intervention
The Thai baht fell today on concerns that the Thai policy makers will intervene to curb appreciation of the currency, joining the so-called currency war. The baht, as well as other Asian currencies, was appreciating as capital inflows in Asia persisted. The appreciation led to worries that Thai exporters will suffer from the strong currency. Many nations (Japan among others) weaken their currencies to support exports, so why Thailand should stay … “Thai Baht Weakened by Threat of Intervention”
Australian Retail Sales Weaken Aussie Further
The Australian dollar fell for the second day against its US counterpart and declined against the Japanese yen as Australia’s retail sales unexpectedly fell in December, adding to signs of economic weakness of the South Pacific country. Retail sales were down 0.3 percent in December on a seasonally adjusted basis, falling at the same rate as in November. Growth by 0.3 percent was anticipated by analysts. Yesterday, the Australian currency was falling as the Reserve Bank of Australia left … “Australian Retail Sales Weaken Aussie Further”
GBP/USD at Lowest Since August, GBP/JPY Near Record Since 2010
The Great Britain pound fell to the lowest level since August against the US dollar even as domestic fundamentals were supportive for the currency. The sterling traded near the strongest rate since January 2010 versus the Japanese yen. British Retail Consortium reported that like-for-like retail sales grew 1.9 percent in January after the 0.3 percent increase in the prior month. The Markit/CIPS UK Services PMI advanced from 48.9 in December to 51.5 … “GBP/USD at Lowest Since August, GBP/JPY Near Record Since 2010”
Bad news for EUR might be good news later on
Fault lines in the Euro have once again been exposed by problems in the Eurozone’s periphery. The one positive read the longs can take from such episodes is that they usually spur the deeper integration they have been calling for, so longer-term this could be bullish for the Euro. During the Summer of last year … “Bad news for EUR might be good news later on”