The Norwegian krone weakened today as Norges Bank Governor Oeystein Olsen complained about the high exchange rate and said that the strong currency can prevent an interest rate hike. Olsen said today: A higher key policy rate might have curbed debt growth and demand pressures in the Norwegian economy. But in an environment of persistently low external interest rates, such a policy would likely have led to a sharp appreciation of the krone, … “NOK Drops as Olsen Says Exchange Rate Too High”
Month: April 2013
CAD Up vs. USD & JPY Despite Poor Employment Forecasts
The Canadian dollar rose against its US counterpart today even though forecasts for Canadian employment are not particularly good. The currency also surged versus the Japanese yen, reaching the highest level since October 2008, but retreated against the euro. Tomorrow’s report is forecast to show that Canadian employment rose by just 6,800 jobs in March, compared to the February growth of 50,700. What is more, it is … “CAD Up vs. USD & JPY Despite Poor Employment Forecasts”
Thai Baht Weakens on Prospects for Intervention
The Thai baht went down today on speculations that policy makers will intervene to curb currency’s gains that may threaten the nation’s economy. Finance Minister Kittiratt Na-Ranong complained that the high exchange rate was partly responsible for the 5.8 percent drop of exports in February. Such comments led to speculations about a potential intervention. The currency was performing well indeed, rallying 4.1 percent since the beginning of the year. The bank … “Thai Baht Weakens on Prospects for Intervention”
Euro Overcomes Some of Its Earlier Losses
After dropping below the 1.2800 level against the US dollar earlier today, the euro is gaining on the day. Risk appetite and a commitment to the euro are helping the 17-nation currency regain some of its earlier losses against the greenback. Earlier, when making the latest ECB announcement, Mario Draghi highlighted some of the challenges still facing the eurozone. The announcement sent the euro plunging against the US dollar, dropping it below the 1.2800 level. … “Euro Overcomes Some of Its Earlier Losses”
Sterling Surges on BoE Policy Decision & Services Growth
The Great Britain pound jumped today after the Bank of England kept the monetary policy unchanged and the service industries expanded with faster pace than was anticipated by analysts. The BoE decided to keep its main interest rate at the record low 0.5 percent and the asset purchase program at £375 billion. Such decision was expected by market participants, but was welcomed nevertheless. The poor Britain’s economic health means that additional … “Sterling Surges on BoE Policy Decision & Services Growth”
Yen Drops as BOJ Announces New Easing Plan
The new easing plan from the Bank of Japan has the yen dropping rapidly today. Yen is down against its major counterparts today as Japanese leaders announce a very aggressive easing plan. Among the pledges made by Prime Minister Shinzo Abe during his campaign was one to tackle the decades-long economic stagnation in Japan. The new Bank of Japan head, Haruhiko Kuroda, seemed to be the perfect fit for that goal. … “Yen Drops as BOJ Announces New Easing Plan”
EUR/USD: Trading the US Non-Farm Employment Change Apr 2013
US Non-Farm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD. Published on Friday at 12:30 GMT. Indicator Background … “EUR/USD: Trading the US Non-Farm Employment Change Apr 2013”
Aussie Gains on Good Domestic Data
The Australian dollar gained today on better-than-expected macroeconomic data and as the Reserve Bank of Australia will retains it Governor for an extended term. The currency slipped versus the Japanese yen yesterday, but was flat today. Seasonally adjusted building approvals jumped 3.1 percent in February after falling for two months. The median estimate was at 2.4 percent. Australian retail sales grew 1.3 percent in February on a seasonally adjusted basis, while only … “Aussie Gains on Good Domestic Data”
Crude Oil Falls on US Employment Report, CAD Follows
The Canadian dollar fell today as crude oil, as well as other commodities, declined after Automatic Data Processing released a worse-than-expected employment estimate. Crude fell as much as 2.7 percent to $94.55 per barrel in New York. Other raw materials followed and The Standard & Poorâs GSCI Index of 24 commodities went down 2 percent. One of the major reasons for the drop of commodities was the ADP employment report, which showed an increase … “Crude Oil Falls on US Employment Report, CAD Follows”
South Korean Won Rises Despite Escalating Political Tension
The South Korean won rose against the US dollar today despite the threat of war between South and North Koreas. The currency remains under pressure as investors are selling South Korean stocks. North Korea said last month that the countries are in a “state of war” and warned yesterday that it is going to resume its Yongbyon nuclear site, which was closed in 2007. The benchmark Kospi Index slipped 0.7 … “South Korean Won Rises Despite Escalating Political Tension”