The Australian dollar fell versus its US counterpart and the euro today, but managed to erase the losses later. The decline was caused by speculations that the US central bank will reduce its stimulating measures. Analysts predicted that tomorrow’s Conference Board report will show that confidence of US consumers improved from 68.1 to 70.7 this month. Such data would add to evidences of stable economic growth and could … “Aussie Drops on Fed Speculations, Recovers”
Month: May 2013
AUD/USD Could Reach 0.9850 Before Downtrend Resumes-Elliott Wave
On AUD/USD we see evidences of a temporary low in place after five waves down in black wave 3. We know that after every five waves, a correction follows, so we think that the current sideways price action represents a wave 4 pull-back that should be sub-divided by three legs. As such, we think that … “AUD/USD Could Reach 0.9850 Before Downtrend Resumes-Elliott Wave”
Confusing Comments of Fed Result in Mixed Performance of USD
The major theme of this week was speeches of various Federal Reserve members and, most importantly, Chairman Ben Bernanke. Comments of policy makers did not help to understand when the central bank is going to end quantitative easing. The confusion resulted in a mixed performance of the US dollar. Bernanke did not clear things up, warning about the danger of premature end to QE, but at the same time saying that the Fed … “Confusing Comments of Fed Result in Mixed Performance of USD”
Japanese Yen Gains amid Risk Aversion
The Japanese yen ended Friday with gains as risk aversion attracted investors to the perceived safety of the currency, allowing the yen to move away from multi-year lows that it has reached recently. Traders are worried that the US Federal Reserve may tamper its quantitative easing program. Such concerns bolstered safer currencies, weakening risky ones at the same time. Japan’s QE created an interesting paradox. It was … “Japanese Yen Gains amid Risk Aversion”
Loonie Closes Lower as Commodities Decline
The Canadian dollar fell today as commodities declined on talks that riskier assets have gained too much in the previous days. Such speculations reduced the appeal of currencies tied to performance of raw materials. US durable goods orders grew 3.3 percent in April, adding to evidences of economic growth in the United States and fueling speculations that the Federal Reserve will reduce stimulus. Such talks boosted the US dollar. Stronger greenback led … “Loonie Closes Lower as Commodities Decline”
Euro Moves Higher Against the Dollar
Euro is paring some of its earlier losses, and even moving higher against the US dollar today, getting help from the latest German Ifo reading. After falling earlier today, the euro is eking out gains against the US dollar. The latest German Ifo reading is helping matters for the 17-nation currency. The latest Ifo report shows an improvement to 105.7 from the 104.4 level seen in April. This unexpected … “Euro Moves Higher Against the Dollar”
US Dollar Heads Higher as Risk Aversion Reappears
Ben Bernanke may be daring investors to buy stocks, but this attempt at encouraging an investment in risk assets doesn’t seem to be working out today. Risk aversion has set in, and the US dollar is higher, and risk assets are lower. After declining yesterday, the US dollar is back up on top as Forex traders and others ponder what’s next for the global economy. Risk aversion seems to be … “US Dollar Heads Higher as Risk Aversion Reappears”
Swedish Krona Falls vs. Euro as Confidence Slips, Rises vs. Dollar
The Swedish krona fell today against the euro, touching the lowest level in a week, after the consumer and manufacturing gauges declined this month, sparking talks about an interest rate cut. The currency advanced versus the US dollar. The Consumer Confidence Indicator fell from 5.2 to 3.6 in May. The confidence indicator for the manufacturing industry declined from -9 in April to -15 this month. The Riksbank will hold its policy meeting on July 3 … “Swedish Krona Falls vs. Euro as Confidence Slips, Rises vs. Dollar”
NZ Dollar Drops as Trade Surplus Shrinks
The New Zealand dollar fell today as the trade balance surplus shrank last month more than was expected by market participants, adding to concerns about slowdown of global growth. The New Zealand trade surplus narrowed from NZ$732 million in March to NZ$157 million in April. The median forecast was at NZ$495 million. The worse-than-expected data spooked traders, who were already worried by the global developments. NZD/USD fell from 0.8132 to 0.8101 … “NZ Dollar Drops as Trade Surplus Shrinks”
Central bank actions shake up currency markets
After the relative calm of the last few months, we are entering a period of increasing volatility across the currency markets. As risk markets across the developed world have hit new record highs, the currency markets have traded sideways amidst the inertia, and, like waiting for a London bus, two significant announcements turned up on … “Central bank actions shake up currency markets”