The Swedish krona rose today even as producer prices fell last month, supporting the view that lower interest rates are necessary. Statistic Sweden reported that the Producer Price Index fell 0.1 percent in May from April. The drop was much slower than the April’s 1.1 percent. It is interesting to see that the currency is rising despite the poor report, while earlier it was falling … “Swedish Krona Firm Despite Falling Producer Prices”
Month: June 2013
US Dollar Gains on Durable Goods Orders
Greenback is heading higher today, thanks in large part to the latest durable goods orders. The improvements in the US economy indicate that the Federal Reserve’s decision to begin tapering bond purchases in the relatively near future was the right call. Ben Bernanke has long said that improving economic data â especially in the realm of jobs â would dictate when the Federal Reserve begins reducing its quantitative easing efforts. The latest announcement … “US Dollar Gains on Durable Goods Orders”
Euro Drops After Earlier Rise
Euro saw some gains earlier, but those have been largely erased as the 17-nation currency heads lower on the reality that banking union plans are far from being settled, and as durable goods orders in the United States rise. Euro looked for some gains earlier today, rising following last week’s dollar strength. However, the gains for the 17-nation currency were short-lived as concerns about what’s next for the eurozone, and better … “Euro Drops After Earlier Rise”
EUR/HUF Rises After Rate Cut Before Retreating, USD/HUF Stays Lower
The Hungarian forint fell against the euro today as the central bank cut interest rates in order to facilitate economic growth, but has recovered as of now. The currency managed to advance versus the US dollar, but has trouble keeping gains. The Magyar Nemzeti Bank reduced its main interest rate by 25 basis points to 4.25 percent today. The bank explained its decision: The Monetary Council has reduced the level of the central bank … “EUR/HUF Rises After Rate Cut Before Retreating, USD/HUF Stays Lower”
Good opportunity to sell commodity-related currencies against USD
Today’s weakness in the US dollar is a good opportunity to buy the dollar and sell commodity related currencies against it. We have seen some weakness in the dollar and a rally in equity markets across Europe today due to market calming moves in China. However any weakness in the US dollar should be viewed … “Good opportunity to sell commodity-related currencies against USD”
CAD Near Lowest in Two Years vs. USD on Poor Market Sentiment
The Canadian dollar was among many losers that have suffered from the negative sentiment on the Forex market after the US Federal Reserve speculated about possible reduction of asset purchases. The currency fell to almost two-year low against the US dollar. The market is still feeling impact of the Fed’s comments even as some politicians and economist argued that the reaction was excessive. Prices for raw materials dropped adding to suffering of commodity … “CAD Near Lowest in Two Years vs. USD on Poor Market Sentiment”
Yen Halts Decline, Unable to Rally
The Forex market sentiment stayed in the risk-aversion mode, but it did not help the Japanese yen to rally. The currency halted its decline though. Prospects for an early reduction of stimulating measures by the US Federal Reserve spooked traders and made them seek safety. Fear of slowing growth in China did not improve the mood at all. Most markets came crashing down, sparking demand for safety. The current market conditions are friendly … “Yen Halts Decline, Unable to Rally”
Can Dollar Extend Last Week’s Rally?
The dollar showed amazing performance last week, gaining against other most-traded currencies. Will it be able to extend the rally or is a sharp correction incoming? The Federal Reserve and its Chairman Ben Bernanke spoke and the comments led to the huge rally for the dollar. Some kind of correction after such big move in one direction could be expected and, indeed, the dollar gave away part of its gains today. Yet … “Can Dollar Extend Last Week’s Rally?”
Won Reaches One-Year Low vs. Dollar
The South Korean won fell today, touching the lowest level in a year against the US dollar, as the Forex market stayed in the risk-aversion mode after the US Federal Reserve signaled last week about a possible end to quantitative easing. Fear of stimulus reduction reigned the market last week, bringing the dollar up and other currencies down. Higher-yielding assets slowed their decline by the weekend, but it looks like the drop has resumed … “Won Reaches One-Year Low vs. Dollar”
Aussie Gains Some Ground after Earlier Drop
Australian dollar has been struggling a bit recently, but today there has been some gains, following a bit of weakness. But, even with the Aussie higher right now, is there a chance that the Down Under currency could head lower again? Aussie headed lower earlier, thanks in large part to the issues out of China. With a cash crunch in China threatening the world’s second-largest economy (and one of Australia’s … “Aussie Gains Some Ground after Earlier Drop”