The Great Britain pound slumped today ahead of central banks’ meeting this week on speculations that UK policy makers will keep stimulus in place to maintain momentum of economic growth. Bank of England policy makers will gather on August 1. The central bank released a very strong statement after the last meeting, suggesting that there likely be no additional stimulus. Such prospect boosted the sterling, which now … “Pound Slumps Ahead of Central Banks’ Meetings”
Month: July 2013
US Dollar Index Moves Off Recent Lows
US dollar index moved off a recent low as the greenback begins showing signs of strength against its major counterparts. With earlier losses pared and the dollar up on the day, speculation about what’s next is running wild. US dollar bounced off recent lows against its major counterparts today, heading higher and bringing the dollar index up. Forex traders are waiting with interest as the Federal Reserve’s … “US Dollar Index Moves Off Recent Lows”
5 Reasons for Forex. Now.
So far, 2013 has been an exciting year in foreign exchange trading, with much more volatility than beforehand. This volatility creates more opportunities for traders and volumes have been on the rise. It could be just the beginning: things could get more exciting in the autumn. If you are thinking of forex trading, here are … “5 Reasons for Forex. Now.”
Aussie Drops on Possibility of a Rate Cut
Easing is an official part of Australian monetary policy right now, and that is causing a drop for the Aussie. The Australian dollar is losing ground against its major counterparts as RBA officials reiterate a position friendly to further easing. Earlier, the Governor of the Reserve Bank of Australia, Glenn Stevens, spoke about the possible need for continued monetary easing. Citing the idea that recent rate cuts were working to help stabilize the economy, … “Aussie Drops on Possibility of a Rate Cut”
Euro Firm on German Consumer Confidence & Bailout for Greece
The euro was firm today as German consumer confidence improved this month and the International Monetary Fund approved another tranche of bailout for Greece. The IMF approved the â¬1.7b for Greece’s bailout after completing the review. Christine Lagarde, the IMF Managing Director, voiced concerns about slow pace of reforms: Given the slow progress in public administration reforms, efforts should focus on ensuring exit of unqualified personnel to create room to hire new staff … “Euro Firm on German Consumer Confidence & Bailout for Greece”
Yen Drops with Industrial Production
The Japanese yen fell today as industrial production declined last month, increasing possibility of additional monetary easing from the central bank. Losses were limited as unemployment shrank more than was expected. According to the preliminary report, industrial production contracted as much as 3.3 percent in June on a seasonally adjusted basis, compared to the predicted decline of 1.4 percent. Such data gives incentive for the Bank of Japan to pursue accommodative policy. The unemployment rate … “Yen Drops with Industrial Production”
CAD Lower vs. USD & EUR as Oil Falls, Higher vs. JPY
The Canadian dollar fell today against its US peer and the euro as crude oil prices went down. At the same time, the currency managed to rise against the Japanese yen on speculations that Canadian economic growth accelerated May. Futures for crude oil fell 0.28 percent to $104.26 per barrel today. Crude is Canada’s biggest export and its decline hurts the Canadian currency. Still, the negative impact is not that … “CAD Lower vs. USD & EUR as Oil Falls, Higher vs. JPY”
Dollar Heads to Monthly Loss as Fed Meets
The dollar gained today, but was heading to monthly loss as speculations that the Federal Reserve will keep its monetary stimulus hurt the currency. Analysts predicted that today’s report will show slowdown of US economic growth from 1.8 percent in the first quarter of 2013 to 1.1 percent in the second quarter. The Fed has started its policy meeting yesterday and will conclude it today. No major changes to the policy … “Dollar Heads to Monthly Loss as Fed Meets”
South Korean Won Rises, Reverses Gains
The South Korean won rose today before falling later as exporters were converting their earnings to the local currency. Worsening manufacturing conditions prevented the won from rallying too much and led to eventual decline. Exporters were selling dollars as the end of the month is nearing and this allowed the won to rally. Gains were limited, though, as importers were buying dollars at the same time. The report from the Bank of Korea that showed … “South Korean Won Rises, Reverses Gains”
NZ Dollar Drops as Government Wants Weaker Currency
The New Zealand dollar dropped today after Prime Minister John Key expressed opinion that the currency’s strength is still excessive and voiced hope that the kiwi will depreciate. Key said today: We are likely to see a depreciation of the New Zealand dollar against the U.S. dollar, and thatâs welcomed because the governmentâs view is that foreign-exchange rate is still overvalued. Last week, Reserve Bank Governor … “NZ Dollar Drops as Government Wants Weaker Currency”