The Chinese yuan advanced today as yesterday’s comments of Federal Reserve Chairman Ben Bernanke reduced fear among Forex traders, increasing demand for currencies with higher yield. Bernanke said yesterday that the benefit of accommodative measures outweigh potential risks. Previously, market participants were worried that the Fed may drop stimulus. It is very likely that absence of monetary easing would be disastrous for the US economy … “Yuan Fluctuates as Bernanke Reduces Fear”
Month: February 2013
Pound Mixed as GDP Matches Forecasts
The Great Britain pound demonstrated mixed performance today as UK GDP matched analysts’ forecast, falling quarter-on-quarter, but growing on an annual basis. UK gross domestic product fell 0.3 percent in the fourth quarter of 2012, according to the second estimate. The figure matched the first estimate and analysts’ expectation. The economy grew 0.3 percent from a year ago. GBP/USD rose a little from 1.5131 to 1.5126 as of 11:07 GMT today. At the same time, … “Pound Mixed as GDP Matches Forecasts”
Dollar Flat After Italian Election, Bernanke’s Testimony
The US dollar traded sideways today as risk aversion caused by the Italian election was trimmed by positive US macroeconomic data and comments of Federal Reserve Chairman Ben Bernanke, who defended the monetary stimulus. Forex market participants were worrying after the last week’s Fed’s minutes that the central bank will drop the stimulus program. Bernanke eased such worries yesterday, saying: We do not see the potential costs … “Dollar Flat After Italian Election, Bernanke’s Testimony”
AUD & NZD Weak amid Risk Aversion Caused by Italian Election
The Australian dollar extended the decline against its US peer as the indecisive outcome of the Italian election fueled the risk aversion sentiment among Forex traders. The New Zealand dollar paused its drop, but remained weak as the nation’s trade balance posted an unexpected deficit. No party had clear victory in the Italian election, which ended on February 25. This essentially created a hung parliament. Traders perceived it as one of the worst … “AUD & NZD Weak amid Risk Aversion Caused by Italian Election”
Bank of Israel Leaves Rates Unchanged, Shekel Flat
The Israeli new shekel was little changed today after Bank of Israel left interest rates unchanged yesterday. The currency may yet decline on speculation that the central bank will cut the rate in the near future. The BoI kept the main interest rate at 1.75 percent. The bank said that the shekel had gained about 0.25 percent versus the dollar during February. Forex market participants are worried that the bank … “Bank of Israel Leaves Rates Unchanged, Shekel Flat”
Traders Move Away from Riskier Currencies, Including Rupee
The Indian rupee weakened today a bit as the inconclusive outcome of the Italian election made traders worry if the problems of the eurozone will resurface amid political uncertainty. The election in Italy resulted in a divided parliament, exactly the kind of outcome that traders were feared of. This means a second vote may be held. Political tension makes Forex market participants nervous, preferring safe currencies like the dollar and the yen, while abandoning … “Traders Move Away from Riskier Currencies, Including Rupee”
Euro in Consolidation Mode against US Dollar
Euro is currently in consolidation mode against the US dollar, looking to firm up a bit against the greenback. However, the 17-nation currency is struggling a bit on uncertainty, and awaiting the latest remarks from Fed Chair Ben Bernanke.
Oil Prices, Economic Concerns Weigh on Canadian Dollar
Canadian dollar continues to struggle in trading today, logging difficulties as economic conditions continue to cause problems, and as oil prices continue to drag the loonie lower. While the Canadian dollar is mostly flat today, there are still worries about underlying weakness. Loonie is mostly flat against major counterparts today, but it is a flatness toward the downside. The Canadian dollar is down against other major currencies, … “Oil Prices, Economic Concerns Weigh on Canadian Dollar”
GBP/USD: Trading the British GDP (second release)
Powered by FXstreet.comBritish Gross Domestic Product (GDP) is considered one of the most important economic indicators 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 pound. Here … “GBP/USD: Trading the British GDP (second release)”
Yen Halts Rally, Resumption is Possible
The Japanese yen dropped today as Forex market participants were anticipating more interventions from Japanese policy makers. The currency at present moves upwards and may yet resume its yesterday’s rally. It is rumored that Japanese Prime Minister Shinzo Abe will likely appoint Haruhiko Kuroda as the next Bank of Japan Governor. Kuroda is considered to be more aggressive on interventions than other candidates. Therefore rumors … “Yen Halts Rally, Resumption is Possible”