US dollar is heading higher today, surging on the latest news from the Federal Reserve. Comments about the Fed’s quantitive easing program â and its potential end this year â are lending strength to the greenback. The President of the San Francisco Federal Reserve, John Williams, made comments indicating that the current quantitative easing program might end this year. The idea that the efforts to keep the dollar weak might be coming … “US Dollar Strengthens on Federal Reserve Comments”
Month: May 2013
An end to QE and what it means for Forex
Central banks through measures such as quantitative easing managed to stave off a global financial collapse and a repeat of the great depression, but unwinding these policies is likely to unleash a new wave of volatility in currency and asset markets. On Thursday May 16, the IMF in its Global Financial Stability Report and World … “An end to QE and what it means for Forex”
Slower Malaysia’s Growth Weakens Ringgit
The Malaysian ringgit weakened today, heading to a weekly decline that will end the eight-week streak of gains, as country’s economic growth slowed last quarter. Malaysian gross domestic product grew 4.1 percent in the first quarter of 2013 from a year ago, slower than in the previous three months (6.5 percent). The median analysts’ forecast was at 5.5 percent. The dollar’s strength also hurt the currency. The Dollar Index advanced 0.9 percent … “Slower Malaysia’s Growth Weakens Ringgit”
Labor Unrest in South Africa Hurts Rand
The South African rand weakened today, extending its longest decline in a year and touching the lowest level in four years, on concerns that worker strikes and falling commodity prices will hurt the nation’s economy. Labor unrest at mines is a continuous problem in South Africa and it looks like the issue resurfaced again. It is very bad for the country’s economy as the mining sector contributes to more than a half of South African exports. … “Labor Unrest in South Africa Hurts Rand”
EURUSD: Bearish Cycles Remains In Play – Elliott Wave
EURUSD reversed slightly higher yesterday from 1.2840 support but not for long as the recovery found resistance very soon, so it was probably just a fourth wave within larger wave 3 down. As such, our bias remains unchanged: we are looking for weaker EURUSD, towards 1.2800 as the next projected target where we could see … “EURUSD: Bearish Cycles Remains In Play – Elliott Wave”
Moody’s Raises Turkey’s Credit Rating, Lira Remains Soft
The Turkish lira was a bit soft today even as Moody’s Investor Service increased Turkey’s credit rating, making nation’s assets more appealing to investors. Moody’s raised Turkey’s government bond ratings by one notch to Baa3 from Ba1 and assigned a stable outlook. The rating agency cited following reasons for the decision: 1. Recent and expected future improvements in key economic and public finance metrics. 2. Progress on structural and institutional reforms … “Moody’s Raises Turkey’s Credit Rating, Lira Remains Soft”
Canadian Dollar Drops on Speculations About End of Fed’s QE
The Canadian dollar dropped today as speculations about reduction of quantitative easing by the US Federal Reserve continued, trimming risk appetite of investors and making them less willing to buy risky currencies. John Williams, the President of the Federal Reserve Bank of San Francisco, said the central bank may slow its $85 billion monthly asset-purchase program. Such speculations were present for some time, bolstering the US currency and weakening riskier ones. … “Canadian Dollar Drops on Speculations About End of Fed’s QE”
Russian Spring: Insight into the Latest FX Regulation Developments
Guest post by Maria Nikolova, ForexBrokerz.com The Russian Forex industry has been a grey area in terms of state regulation for some 20 years, despite the booming growth of this market: it suffices to mention that the Moscow Exchange posted three records in daily FX trading volumes in April, or that a recent study by Daphnis … “Russian Spring: Insight into the Latest FX Regulation Developments”
USDCHF: Corrective Pull-back Within the Uptrend – Elliott Wave
USDCHF reversed lower yesterday from around 0.9750. However, this is not a surprise if we respect the structure from 0.9242 which was clearly made in five waves, and we know that this happens after every five wave correction. As such, we think that the pull-back from the top is temporary, but we still need a … “USDCHF: Corrective Pull-back Within the Uptrend – Elliott Wave”
Euro Mixed Today as Oil Probe Continues
Euro is mixed today on the Forex market as an oil probe looking into price fixing continues. Recent US economic data is also being taken into consideration, since it demonstrates that maybe recovery is not on the way after all. Euro is turning in a mixed performance today, heading higher against low beta currencies like the dollar and the yen, but losing ground to the UK pound. Even … “Euro Mixed Today as Oil Probe Continues”