UK pound is getting a boost today, thanks to the latest economic data. Indications that the economy grew, rather than contracted, are helping the pound, as it might mean an end is in sight for the current quantitative easing program. According to the Office for National Statistics, the UK economy expanded by 0.3 per cent in Quarter 1. Expectations had been for an increase of 0.1 per cent, and some pessimistically proclaimed that the economy would … “Britain Avoids Triple-Dip Recession; Pound Rallies”
Month: April 2013
US Dollar Struggles After Soft Economic Data
More soft economic data out of the United States is weighing on the US dollar today. Speculation that the economic recovery in the United States is slowing is sending the dollar lower against many of its counterparts. Disappointing economic data is dragging on the US dollar today. Durable goods dropped the most in seven months, and there are concerns about the still-sluggish labor market. Additionally, retail sales data has also … “US Dollar Struggles After Soft Economic Data”
Swedish Krona Gains, Riksbank Ready to Intervene
The Swedish krona gained today, leading to speculations that the central bank will step in to subdue the rally of the currency that threats growth of consumer prices. The strong currency has adverse impact on inflation and the Riksbank may intervene to bring the Consumer Price Index to the target of 2 percent. Consumer prices were unchanged (posted zero growth) in March. Riksbank’s First Deputy Governor Kerstin af Jochnick thought that the rally of the krona is … “Swedish Krona Gains, Riksbank Ready to Intervene”
Yuan Climbs as Demand from Traders Increases
The Chinese yuan advanced today, trading near the record level, as the People Bank of China increased its reference rate and demand for the currency among traders increased. The yuan finds more usage in trading as investors are attracted to the growing Asian economy. Australia announced that 5 percent of its foreign-currency reserves will be in yuans. China is the biggest trading partner of Australia. Rising demand for the Chinese currency promises growing capital … “Yuan Climbs as Demand from Traders Increases”
Pound Gains on Europe’s Woes, Trims Rally vs. Euro
The Great Britain pound rallied today as poor macroeconomic data from Europe increased the appeal of the UK currency as a safe haven against problems in the eurozone. The sterling trimmed its gains versus the euro as Britain’s retail sales unexpectedly fell. The German Ifo Business Climate Index fell from 106.7 in March to 104.4 in April. Analysts have hoped that the gauge would stay little-changed. The report added to signs of economic weakness of the eurozone. … “Pound Gains on Europe’s Woes, Trims Rally vs. Euro”
CAD Reverses Losses vs. USD & JPY, Erases Gains vs. EUR
The Canadian dollar was falling today against the US dollar and the Japanese yen, but pared losses and is hovering near the opening level right now. On the other hand, the currency erased its gains versus the euro. Macroeconomic data from both the United States and Europe was bad today, driving the Forex market into the risk-aversion mode. Not everything was bad for the loonie though. Crude oil, Canadaâs biggest export, … “CAD Reverses Losses vs. USD & JPY, Erases Gains vs. EUR”
Euro Loses Ground on Economic Data
Euro is losing ground today, thanks to more disappointing economic data out of Germany, and across the eurozone. Euro is down against all of its major counterparts due to concerns about the faltering German economy, and its affect on the rest of the eurozone. Last week, the president of the Bundesbank in Germany said that the ECB rate was at an appropriate level, and that there was no reason to change the situation unless economic data was … “Euro Loses Ground on Economic Data”
US Dollar Trades Mixed Today
US dollar is trading mixed today, and is mostly rangebound, as Forex traders await developments. There is plenty to consider right now, between speculation of an ECB cut and interest in continued earnings reports. Greenback is higher against the euro today, gaining as speculation that the European Central Bank will be forced to cut rates as economic news out of Germany continues to worsen. US dollar is lower against … “US Dollar Trades Mixed Today”
Yen Weakens as Traders Hope for More Stimulus from Central Banks
The Japanese yen weakened today as prospects for additional stimulus from central banks of developed nations attracted investors to higher-yielding assets and reduced demand for safety. The Bank of Japan is perhaps the most aggressive central bank with continuous efforts to boost the economy and weaken the yen. Prospects for additional monetary easing continue to push the currency to the downside. One of the best performers against the yen today was the New Zealand dollar. The kiwi was supported … “Yen Weakens as Traders Hope for More Stimulus from Central Banks”
NZ Dollar Soars as RBNZ Refrains from Cutting Interest Rates
The New Zealand dollar surged today after the Reserve Bank of New Zealand left its main interest rate unchanged and suggested that there will be no rate cuts this year. The RBNZ maintained its Official Cash Rate (the key interest rate) at 2.5 percent today. The accompanying statement was rather positive, saying that “global financial market sentiment remains buoyant” and “growth in the New Zealand economy … “NZ Dollar Soars as RBNZ Refrains from Cutting Interest Rates”