The euro fell today as German economic growth trailed forecasts, reducing investors’ optimism about the future of the eurozone. Today’s report showed that “the German economy is slow in gaining momentum” as gross domestic product barely rose 0.1 percent in the first quarter of 2013. Analysts have hoped for 0.3 percent expansion. At the same time, the US economy looks robust enough, driving the Dollar Index to the highest level in almost 10 months. … “German GDP Trails Forecasts, Euro Down”
Month: May 2013
AUDUSD Bearish; Wait On Pull-back For New Shorts (Elliott
AUDUSD extended its weakness in the last few sessions within wave (iii) which can be counted now in five smaller waves. As such, support for the current decline could be near, maybe around 0.9800 from where we will be tracking a wave (iv) corrective rally if we see evidences of a temporary low. If that … “AUDUSD Bearish; Wait On Pull-back For New Shorts (Elliott”
Intervention Concerns Push Won Lower
The South Korean won declined today on speculations that the weakness of the Japanese yen will prompt nation’s policy makers to intervene in an attempt to push the exchange rate lower. Japan’s aggressive monetary policy worries other Asian nation and encourages them to intervene too. Bank of Korea Governor Kim Choong Soo said that it will have a “big impact” on the South Korean economy. Policy makers surprised Forex market participants … “Intervention Concerns Push Won Lower”
AUD/USD Set to Fall to 0.60?
John Taylor, the CEO of FX Concepts stated in an interview that he took a short position on AUD/USD with very ambitious goals. Taylor sees the Aussie fall to 0.90 in a conservative scenario, and as low as AUD/USD 0.60 in a braver scenario. The bet is only against the Australian dollar and not against … “AUD/USD Set to Fall to 0.60?”
Canadian Dollar Maintains Decline amid Concerns for Economic Growth
The Canadian dollar demonstrated a big drop against its US counterpart yesterday and continued to fall today on concerns that Canada’s economic growth will trail that of the United States. The currency was also weak against other majors, including the euro and the yen. The US economy is expected to expand 2 percent in 2013. At the same time, analysts believe that the Canadian economy will grow just 1.6 percent. Such outlook … “Canadian Dollar Maintains Decline amid Concerns for Economic Growth”
Aussie Soft After Budget Forecast
The Australian dollar was soft today after the government forecast that economic growth will slow in the next financial year, adding reasons for the central bank to cut interest rates further. The Australia Treasury revealed the budget for the 2013–14 financial year today. It predicted that growth of real gross domestic product will slow to 2.75 percent from the current year’s 3 percent. Unemployment is projected to edge up from … “Aussie Soft After Budget Forecast”
USD/JPY: Trading the Philadelphia Index May 2013
The Philadelphia Fed Manufacturing Index is an important leading indicator, and is based on a survey of manufacturers in the Philadelphia area. It examines manufacturers’ opinions of business activity, and helps provides a snapshot of the health of the manufacturing sector. A reading which exceeds the forecast is bullish for the dollar. Here are all … “USD/JPY: Trading the Philadelphia Index May 2013”
The Fed needs to be convinced that this time it’s
The US economy has seen many “false starts” and the recovery remains low and frustrating. In order for the Fed to begin withdrawing monetary stimulus, it will need to see that the recovery is sustainable and that fiscal policy does not restrain it, says Simon Smith of FxPro. In the interview below, Smith also discusses … “The Fed needs to be convinced that this time it’s”
Euro Drops as Germany and the ECB Disagree
The euro’s struggles against the US dollar continue today, with Germany and the ECB disagreeing on the next policy move. Euro has managed to make up some lost ground, though, paring its earlier losses as risk appetite rises on better equity performances. However, with commodities lower, the euro isn’t likely to find too much support. Right now, some major disagreements over policy for the eurozone are emerging between … “Euro Drops as Germany and the ECB Disagree”
US Dollar Index Heads Higher
US dollar is heading higher today, gaining as the rush for global liquidity sends other currencies down. Greenback is also finding support from some of its better than expected economic data — which also happens to indicate that it is in better shape than some other currencies. US dollar index remains firmly above the 83.00 mark today. Dollar index is finding support as other … “US Dollar Index Heads Higher”