The United States is currently undergoing a cutback in government spending called sequestration. This came about as a result of a bill that was signed into law in 2011 due to the last debt ceiling issue. It is not yet known just how severe these budget cuts will be. What is known is that persons … “The Debt Ceiling and its Impact on the Global Economy”
Month: March 2013
EUR/USD Plunges as US Economy Looks Better than European
The US dollar climbed against the euro today as the US economy continued to perform much better than the European one. The currency fell a little against the Great Britain pound and was flat versus the yen. Today’s data from Europe showed that its economy continues to struggle. Eurozone industrial production fell 0.4 percent in January from December. French non-farm payrolls dropped 0.3 percent in the fourth quarter of 2012 from … “EUR/USD Plunges as US Economy Looks Better than European”
GBPUSD Could Recover Back Above 1.5000 (Elliott Wave Analysis)
GBP made a new low yesterday around 1.4830 before prices reversed higher during the US session. Well, now we can count five waves down in wave 5) from 1.5190 which means that the pair could make a corrective bounce, ideally a larger pull-back in wave (4) as we are tracking now a final stage … “GBPUSD Could Recover Back Above 1.5000 (Elliott Wave Analysis)”
Euro Shows Weakness after Economic Data
Euro is showing weakness today, thanks in large part to disappointing economic data. Also impacting the outlook for the euro are continued difficulties in Italy and other periphery countries. It’s hard to get excited about the euro when more hurdles seem to be thrown up. The latest industrial production data out of the eurozone indicates that the economy continues to struggle. Industrial production sank 0.4 per cent overall, which is … “Euro Shows Weakness after Economic Data”
Sterling Higher, But Weakness Remains
UK pound is a little higher today, gaining ground after yesterday’s drop following unexpectedly poor data. Even though sterling is seeing gains right now, the currency remains vulnerable. Long term weakness is likely. Yesterday, data involving January’s industrial output in Britain showed a sharp drop that sent the UK pound tumbling against its major counterparts. The drop was precipitous, putting the sterling … “Sterling Higher, But Weakness Remains”
Yen Gains as Politicians Divided About BoJ Leadership
The Japanese yen advanced today on signs that nation’s politicians are divided about leadership of the central bank, raising speculations that additional stimulus may be postponed. Some opposition parties voted against deputy governor nominee Kikuo Iwata. Others were against the nomination of Haruhiko Kuroda as the Bank of Japan Governor. The division about the future leadership of the central bank means that the additional accommodative measures will likely be … “Yen Gains as Politicians Divided About BoJ Leadership”
NZD Weakens Ahead of RBNZ Meeting on Concerns About Drought
The New Zealand dollar declined against other most-traded currencies today on concerns that drought that the country is experiencing will worsen hurting the New Zealand economy. Adverse weather in New Zealand can be detrimental to the nation’s economy, which for a large part depends on agriculture. The Reserve Bank of New Zealand will hold its policy meeting by the end of today’s session. No change to the monetary policy is expected. Economists … “NZD Weakens Ahead of RBNZ Meeting on Concerns About Drought”
EUR/USD: Trading the US jobless claims March 2013
US Unemployment Claims indicator is released weekly, and measures the number of people filing for unemployment for the first time. It is considered an important measure of the health and direction of the economy. A reading which is higher than the market forecast is bullish for the euro. Here are all the details, and 5 possible … “EUR/USD: Trading the US jobless claims March 2013”
S&P Changes Outlook for Mexico to Positive, Benefiting Peso
The Mexican peso gained today after Standard&Poor’s confirmed the country’s credit rating and changed the outlook to positive on hopes for fiscal reforms that should improve the nation’s economy. The S&P confirmed Mexico’s long-term sovereign foreign credit rating at BBB, which is not that good as it is the second-lowest investment grade. Yet the rating agency changed the outlook from stable to positive, giving hope that this may improve in time. … “S&P Changes Outlook for Mexico to Positive, Benefiting Peso”
AUD/USD: Trading the Australian jobs Mar 2013
The Australian Employment Change indicator, released monthly, is an important leading indicator which often has a significant impact on the markets. Employment figures are important as they provide a snapshot of the health of the economy. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details … “AUD/USD: Trading the Australian jobs Mar 2013”