The Swiss franc retreated today after jumping yesterday on risk aversion, but retained most of its gains. Additionally, the currency advanced versus the yen, against which it fell yesterday. Forex traders were not in mood to risk and preferred safer assets. Negative data from China and the eurozone added to concerns caused by speculations that the Federal Reserve may tamper its quantitative easing program. Safe currencies rallied on the pessimistic … “Swiss Franc Retains Gains on Risk Aversion”
Month: May 2013
Pound Advances vs. Dollar on UK GDP, Falls vs. Euro & Yen
The Great Britain pound advanced today versus the US dollar after the second revision of GDP data confirmed that the nation’s economy emerged from recession. At the same time, the currency weakened against the euro and the Japanese yen. UK gross domestic product grew 0.3 percent in the first three months of 2013 from the fourth quarter of 2013, according to the second revision. The reading was unchanged from the preliminary estimate. The data added to optimism … “Pound Advances vs. Dollar on UK GDP, Falls vs. Euro & Yen”
Canadian Dollar Teeters Between Gains and Losses
Canadian dollar is experiencing very choppy trading today, moving between gains and losses against major counterparts as traders and investors try to figure out what to do next. Yesterday, markets rallied following Federal Reserve Chair Ben Bernanke‘s testimony before Congress. Today, though, there is a different mood, with Chinese manufacturing reports indicating a contraction, and news out of the eurozone indicating continued recession. Even so, … “Canadian Dollar Teeters Between Gains and Losses”
Euro Gains Even After Weak Data
The eurozone continues to show weak data readings, and many expect the recession in the eurozone to last through the rest of the year. However, even so, the euro is still gaining against the US dollar. Even with the current “risk off” environment, euro is heading higher. The latest Purchasing Managers’ Composite index reading from Markit shows that a rise from 46.9 to 47.7 is being seen for May. However, even though … “Euro Gains Even After Weak Data”
Concerned Investors Buy Yen
The Japanese yen climbed today, posting the biggest gain against the euro in five weeks, as Chinese manufacturing and speculations about the future monetary policy of the US Federal Reserve made investors nervous and unwilling to risk. Today’s data from China was worse than market participants have anticipated, driving the Forex market into the risk-aversion mode. Traders were already concerned after yesterday’s comments of Fed Chairman Ben Bernanke. The MSCI … “Concerned Investors Buy Yen”
Aussie Drops with China’s Manufacturing
The Australian dollar slumped today, reaching the lowest level in a year against the US dollar, as China’s manufacturing contracted this month and the US Federal Reserve hinted that quantitative easing may be reduced. The HSBC Flash China Manufacturing Purchasing Managersâ Index dropped from 50.4 in April to 49.6 in May. It was expected to be little changed at 50.5. A reading below 50.0 indicates contraction of the sector. The Aussie (as the Australian currency … “Aussie Drops with China’s Manufacturing”
EURUSD: Downtrend Continuation to 1.2700-Elliott Wave
EURUSD made a three wave rally this week. This move has been expected in wave 4, but now the pair is already turning lower again after having completed a zig-zag at the 1.3000 psychological level. We can see that the price broke through the lower side of a corrective channel which is a very important … “EURUSD: Downtrend Continuation to 1.2700-Elliott Wave”
EUR/USD: Trading the German IFO May 2013
The German Ifo Business Climate is a monthly composite index of about 7,000 businesses, which are surveyed about current business conditions and their expectations concerning economic performance over the next six months. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at 8:00 GMT. Indicator Background The German Ifo Business … “EUR/USD: Trading the German IFO May 2013”
Franc Drops as Jordan Speaks on Negative Interest Rates & Franc Cap
The Swiss franc dropped today as Swiss National Bank President Thomas Jordan talked about possibility of negative interest rates and shifting of the cap on the franc. Jordan warned about negative consequences of a strong currency: An appreciation of the franc would endanger price stability and have structurally grave consequences for the Swiss economy. He also spoke about changing the franc’s ceiling: The adjustment of the minimum exchange rate is something that principally belongs to the options … “Franc Drops as Jordan Speaks on Negative Interest Rates & Franc Cap”
Dollar Volatile as Bernanke Speaks
The US dollar was volatile today as Forex market participants were trying to interpret the words of Federal Reserve Chairman Ben Bernanke and to guess whether the central bank will remove stimulus. Bernanke was testifying to the Congress today. At first, he warned about the danger of premature end to quantitative easing: Premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing … “Dollar Volatile as Bernanke Speaks”