Canadian Dollar – Housing vs. All the Rest

The Canadian dollar lost ground to the US dollar in January mostly due to a relatively dovish statement from the BOC. A rate hike is not that imminent. Did anybody think it was really coming that fast? And, Canada’s neighbor to the south has a much more dovish monetary policy – open ended QE, and … “Canadian Dollar – Housing vs. All the Rest”

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Will Vietnamese Dong Continue Moving Sideways?

The Vietnamese dong, which is one of the least valued currency in the world in terms of monetary units (after the currencies of Iran and Somalia), was little changed over the week, closing at 20,825 per US dollar. The currency has some bullish domestic factors, which may support the dong, but experiences negative influences as well. Conflicting fundamentals result in sideways movement of the currency. The World Bank said that rapid credit growth and other signs … “Will Vietnamese Dong Continue Moving Sideways?”

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G20 was a brief pause in the currency wars

Agreement at the G20 over halting competitive devaluations has done little to allay fears of an escalating currency war and may have barely provided a brief pause in this saga with more skirmishes almost a certainty. The main take-away from the G20 for the currency warriors is to make their objectives less obvious. For the … “G20 was a brief pause in the currency wars”

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Comments of Weale Make Pound Sink

The Great Britain pound sank against the US dollar, reaching the lowest since July, and edged down versus the euro today as Bank of England policy maker Martin Weale said that weaker currency can be beneficial for the economy. The sterling was flat against the Japanese yen. It looks like the past Group of Twenty meeting not only failed to deter central bankers from devaluing currencies, but in some way … “Comments of Weale Make Pound Sink”

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US Dollar Finds Support after Economic Data Release

US dollar is finding some strength today, thanks to recent economic data. While the greenback is slightly lower against the euro today, it is stronger against other major currencies. Euro was a little weaker earlier, thanks to concerns about the divergence between the ECB‘s benchmark and market rates. However, the idea that the financial system is stabilizing is enough to give the euro a very small edge. Against … “US Dollar Finds Support after Economic Data Release”

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Euro Looks for Gains

Euro is heading a little bit higher against the US dollar, and gaining against other major currencies today. However, the gains aren’t as big as they could be, with concerns about what’s next for the ECB’s plans for interest rates. Euro is getting some help from the fact that fewer banks need to rely on the European Central Bank for funding help. Many of the banks in core countries like Germany need … “Euro Looks for Gains”

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Yen Continues to Fall After G20 Meeting

The Japanese yen continued to fall today as Japan was not blamed for devaluing the currency at the Group of Seven and the Group of Twenty meetings last week. Japanese Prime Minister Shinzo Abe said: I’m not in a position to comment on an appropriate currency level. Basically, our policies are not aimed at weakening the yen. Indeed, the G20 members looked ready to take the Japan’s policies as the ones aimed at boosting the economy, not devaluing the currency. Now … “Yen Continues to Fall After G20 Meeting”

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South Korean Won Follows Yen in Decline

The South Korean won declined today on speculation that the government will push the currency down after the rally, following the example of Japan. There were talks ahead of the Group of Twenty meeting that the members of G20 would demand from Japan to stop devaluing its currency. Such speculations proved to be wrong. Now Forex market participants are worried that South Korea will follow the suit, weakening its currency, … “South Korean Won Follows Yen in Decline”

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British Pound – Between a Rock and a Hard Place

The pound was one of the losers during January, and there are quite a few reasons to believe this will continue during February. The British economy contracted 0.3% in Q4 according to the first release of GDP. The economy actually enjoyed only one quarter of growth, Q3, and this is clearly linked to the Olympics. … “British Pound – Between a Rock and a Hard Place”

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G7 & G20 Meetings Do Not Prevent Yen’s Decline

The Japanese yen fell against most major currencies this week as there were no indications that Japan’s government will be prevented from weakening the currency even more. The yen was rising for the most part of the week amid speculations that the Group of Seven or the Group of Twenty would scold Japan for devaluing currency. Yet by the end of the week it became apparent that the Asian country would get away with … “G7 & G20 Meetings Do Not Prevent Yen’s Decline”

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