The Swiss franc fell on signs that the Swiss National Bank will preserve the cap on the currency as the economy does not recover fast enough to warrant changes to the current policies. The SNB was preserving the ceiling of 1.20 francs per euro and is not likely to drop it anytime soon. Jean-Pierre Danthine, the Vice Chairman of the SNB Governing Board, said that “the franc is still highly valued”. He also noted “as the economic … “Swiss Franc Weak on Signs SNB Wants to Preserve Ceiling”
Month: May 2013
CAD Firm vs. EUR & USD, Soft vs. JPY on Mixed Fundamentals
The Canadian dollar rose against the euro and erased losses against the US dollar yesterday and remained firm today. At the same time, the currency was soft versus the Japanese yen, paring yesterday’s rally. Fundamentals were mixed for the loonie. On one hand, building permits grew 8.6 percent in March from February, beating the forecast of 0.7 percent by a great margin. On the other, the Ivey Purchasing Managers’ Index slipped from 61.6 in March to 52.2 … “CAD Firm vs. EUR & USD, Soft vs. JPY on Mixed Fundamentals”
Another Good Week for GBP?
The Great Britain pound felt itself strong recently, but was a bit soft at the start of today’s trading session. Will the currency be able to maintain its rally this week? Britain’s economy emerged from recession and the sterling was rallying since then. Last week was the week of strength as all Purchasing Managers’ Indices (manufacturing, construction and services) were good. This week’s reports are also expected to be … “Another Good Week for GBP?”
Mario Draghi Drags on the Euro
ECB President Mario Draghi’s remarks on the euro and the eurozone economy are weighing on the 17-nation currency today. Insisting that monetary policy will continue to accommodate the economic conditions, Draghi’s remarks are weighing on the euro, sending it lower against its major counterparts. The President of the European Central Bank, Mario Draghi, said earlier that eurozone policymakers stand ready to take action that will boost growth in the eurozone. With … “Mario Draghi Drags on the Euro”
US Dollar Gains Ground on Risk Aversion; Ready to Test 100-Yen Mark
US dollar is gaining ground today, heading higher on risk aversion, and gaining strength from the fact that the economic recovery seems to be progressing. Many Forex traders are especially interested in the dollar’s performance against the yen; it looks as though the greenback is ready to test the 100-yen level again. With equities struggling today, there is a bit of risk aversion, and that is helping the greenback against its … “US Dollar Gains Ground on Risk Aversion; Ready to Test 100-Yen Mark”
For what it’s worth
With apologies to the ‘60s rock group Buffalo Springfield, “There’s something happening here, and what it is ain’t exactly clear.” I’m confused. Maybe confused is the wrong word. I’m baffled. We have two economies, the United States and the Eurozone. One economy appears to be making its way out of the economic doldrums it has … “For what it’s worth”
Aussie Drops Ahead of RBA Meeting as Retail Sales Contract
The Australian dollar dropped today after retail sales unpleasantly surprised Forex market participants by falling in March. The negative data spurred talks about potential interest rate cut by the Reserve Bank of Australia. Retail sales shrank 0.4 percent on a seasonally adjusted basis in March after rising 1.3 percent in February. Traders have hoped for an increase by 0.2 percent. The RBA conducts meeting tomorrow. Analysts do not expect the central … “Aussie Drops Ahead of RBA Meeting as Retail Sales Contract”
Ringgit Rallies Most Since 2010 After Elections
The Malaysian ringgit advanced today, posting the biggest gain since 2010, after the elections resulted in the government party securing a clear majority in the parliament. It should allow Prime Minister Najib Razak to continue with his reforms unhindered. Razak’s Barisan Nasional coalition (also known as the National Front) secured 133 of the 222 parliamentary seats. The victory should allow the Prime Minister to proceed with his $444 billion development program … “Ringgit Rallies Most Since 2010 After Elections”
USD/JPY aiming at 100 once again
Once again the USD/JPY is aiming towards the 100.00 level, having tested resistance at the 99.44 level in overnight trading. The JPY is lower against most currencies. Japan was closed today for a banking holiday (Children’s Day). A break of the 99.45 level could see a quick move towards the 99.70 area and that would … “USD/JPY aiming at 100 once again”
EUR/USD: Trading the German Factory Orders
German Factory Orders measures the change in new purchase orders placed with manufacturers. A reading that is higher than the market forecast is bullish for the euro. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Tuesday at 10:00 GMT. Indicator Background Factory Orders is an important indicator of the health of the … “EUR/USD: Trading the German Factory Orders”