The Chinese central bank set the reference rate for the yuan higher today, leading to gains of the currency. The bank allowed the currency to gain on optimistic outlook for the global economy. The Peopleâs Bank of China increased the daily yuan fixing by 0.03 percent to 6.2804 per dollar. The bank was able to raise the rate after yesterday’s positive data about the German economic sentiment improved prospects for the global economy. The Chinese economy is still largely export-oriented, … “Chinese Yuan Stronger as PBoC Boosts Daily Fixing”
Month: February 2013
Wheeler Hints on Intervention, Pushing NZ Dollar Down
The New Zealand dollar dipped today as the central bank’s Governor hinted that he is ready to intervene and prevent excessive gains of the currency. Reserve Bank of New Zealand Governor Graeme Wheeler said: When the New Zealand dollar is coming under upward pressure, we want investors to know that the kiwi is not a one- way bet. At the same time, Wheeler noted that a large-scale intervention is not … “Wheeler Hints on Intervention, Pushing NZ Dollar Down”
USD/JPY – Trading the US Unemployment Claims
US Unemployment Claims, a key indicator, is released each week. It measures the number of people who filed for unemployment for the first time during the previous week. A reading which is higher than the market forecast is bearish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on … “USD/JPY – Trading the US Unemployment Claims”
Australian Dollar – Domestic Issues Weigh, China Ignored
The Australian dollar continued remaining in high ground, but it certainly lost its shine. The good figures from China, as seen in a healthy GDP report and an excellent manufacturing PMI reported by HSBC, have not helped the Australian dollar. The Aussie also lost its shine as a “risk on” currency. Good news from Europe … “Australian Dollar – Domestic Issues Weigh, China Ignored”
Canadian Dollar Falls as Threat of Fiscal Cliff Resurfaces
The Canadian dollar fell yesterday and maintained its losses today as the threat of the fiscal cliff resurfaced in the news headlines, making investors avoid riskier assets in favor of safer ones. The fiscal cliff in the United States, the major trading partner of Canada, was postponed, but not averted altogether. Now, market participants are worried yet again about the automatic budget cuts, also known as budget sequestration. The vast majority of specialists think … “Canadian Dollar Falls as Threat of Fiscal Cliff Resurfaces”
Turkish Lira Falls with Lower Interest Rates
The Turkish lira weakened today after the central bank reduced interest rates, spurring speculation that policy makers will subdue currency’s gains to support the economy. The Central Bank of the Republic of Turkey lowered its interest rates today, cutting both the borrowing rate and the lending rate by 25 basis points to 4.5 percent and 8.5 percent respectively. The tone of the central bank’s statement was rather positive: Domestic demand follows a moderate … “Turkish Lira Falls with Lower Interest Rates”
German Economic Data Provides Only Small Support for Euro
German economic data has provided a bit of a boost to the euro today, but the gains are more modest than many might expect. Even though the macroeconomic picture appears to be getting better in Germany, it’s not quite enough to overcome the other problems in the eurozone. German economic sentiment improved, according to the latest ZEW survey of investors. The news has been helping European shares, and provided a small boost to the euro. Sentiment … “German Economic Data Provides Only Small Support for Euro”
BOJ Uncertainty Boosts Yen
Yen is higher today, thanks to some of the uncertainty surrounding what will happen next with the Bank of Japan. With government officials not agreeing on how hawkish the next BOJ governor will be, and with other policy statements made, yen is finding strength against its major counterparts. One of the big subjects of uncertainty — and speculation — right now is who the next governor of the Bank of Japan will be. … “BOJ Uncertainty Boosts Yen”
Aussie Strong After RBA Minutes
The Australian dollar strengthened after the minutes of the last Reserve Bank of Australia’s policy meeting have been released today. The minutes showed that the accommodative policy was positive for the economy, but additional stimulus remains probable. The RBA said that “global economic conditions had been a little more positive and the downside risks had abated somewhat”, while the domestic data “had been mixed”. The bank noted the positive effect of the accommodative … “Aussie Strong After RBA Minutes”
China Destroys Milk Powder, NZ Dollar Suffers
The New Zealand dollar retreated today on the news that China destroyed some imported milk powder. Milk products are one of the major New Zealand’s exports. There are reports that China’s quarantine administration destroyed three brands of milk powder. It is not yet clear how this will affect New Zealand’s exports and some experts say that the impact will temporary if any. China … “China Destroys Milk Powder, NZ Dollar Suffers”