The Canadian dollar was flat against its US peer today, erasing the intraday loss. The currency gained versus the euro and fell against the Japanese yen. The loonie (as the Canadian currency is nicknamed for the image of an aquatic bird on the C$1 coin) has moved virtually nowhere against the greenback since the end of February. Against the euro, the Canadian currency was flat since the beginning of the last month. Currencies usually move sharply after a period … “USD/CAD Flat, Seeking Direction”
Month: March 2013
Did the US actually fall off the fiscal cliff?
The fiscal cliff was supposedly averted at the turn of the year, as Democrats and Republicans reached a last minute deal that would prevent tax hikes for the vast majority of Americans. However, one wide reaching tax was hiked: the payroll tax break was left to expire, squeezing the amount of spare cash in many Americans’ … “Did the US actually fall off the fiscal cliff?”
Bundesbank Predicts More Problems for the Euro
Even though the euro is logging gains against its major counterparts today, the Bundesbank sees trouble ahead for the 17-nation currency. Unconvinced that the eurozone crisis is over, Germany’s central bank is stockpiling billions in order to get through what it thinks is more difficult as the sovereign debt crisis continues. The head of Germany’s central bank, Jens Weidmann, thinks that reforms are needed in order to get … “Bundesbank Predicts More Problems for the Euro”
US Dollar Index Slips as Traders Look for Direction
US dollar index is slipping right now, after seeing gains earlier in the session. Forex traders are looking for direction right now as economic data comes in from various sources. For now, US dollar is lower against the euro, and the dollar index is slipping a bit. Earlier, the dollar index was near its seven-month high, but the index has since fallen below today’s open. Greenback got … “US Dollar Index Slips as Traders Look for Direction”
Sterling Declines as UK Output Contracts
The Great Britain pound dropped today, touching the lowest level since June 2010 against the US dollar, as both factory and industrial production declined in January. UK industrial output dropped 1.2 percent in January from December. Factory production declined 1.5 percent in the same period. The data confirmed that Britain’s economy is experiencing tough times, driving investors away from the nation’s currency. GBP/USD fell from 1.4911 … “Sterling Declines as UK Output Contracts”
AUD/USD Rises Despite Falling Business Confidence, AUD/JPY Retreats
The Australian dollar gained against its US counterpart today even as business confidence edged down last month. At the same time, the trimmed its gains versus the Japanese yen. The National Australia Bank business confidence index went down from 3 to 1 in February. The report mentioned the high exchange rate of AUD as one of the reasons for the decline of confidence among businesses. The currency was rising against USD despite the data, but … “AUD/USD Rises Despite Falling Business Confidence, AUD/JPY Retreats”
Threat of Interventions Continues to Weaken Yen
The Japanese yen extended its drop today, falling to the lowest level August 2009 against the US dollar, on signs that policy makers will continue to intervene, attempting to weaken the currency. The yen paused the decline as of now, trimming its losses against the dollar and erasing them completely versus the euro and the pound. The next Bank of Japan Governor Haruhiko Kuroda signaled that he will pursue more aggressive monetary easing and said … “Threat of Interventions Continues to Weaken Yen”
EUR/USD Backs of as Fitch Downgrades Italy
The euro fell today, following yesterday’s gains, after Fitch Ratings downgraded Italy’s credit rating. The currency held steady against the Japanese yen and the Great Britain pound. Fitch downgraded Italy’s long-term foreign and local ratings to BBB+ from A-, while the outlook remained negative. The agency cited among other reasons for the downgrade: The inconclusive results of the Italian parliamentary elections on 24–25 February make it unlikely that a stable new … “EUR/USD Backs of as Fitch Downgrades Italy”
Indian Rupee Falls on Concerns About Current Account Shortage
The Indian rupee fell today on concerns that a decrease of foreign capital inflows will lead to widening of the country’s current account deficit, which is already at the record level. Market participants are concerned that the gap, which on an annual basis was at the record 4.2 percent of gross domestic product a year ago, may climb much higher this year in case inflows of foreign capital dry up. Global funds added … “Indian Rupee Falls on Concerns About Current Account Shortage”
Aussie Weakened by Chinese Industrial Production, Losses Limited
The Australian dollar fell against its US counterpart as China’s industrial production demonstrated the slowest start of a year since 2009. The Aussie almost erased its gains versus the greenback as of now and advanced against the Japanese yen. Chinese industrial output increase 9.9 percent in the first two months from a year ago, according to the National Bureau of Statistics. Analysts have hoped for an increased by 10.4 percent. The Australian currency dipped on this report, … “Aussie Weakened by Chinese Industrial Production, Losses Limited”