The Great Britain pound advanced today, rising to the new high against the US dollar (the strongest level since February), as the construction sector added to evidences of economic growth in the United Kingdom. The Office for National Statistics reported that monthly construction output increased by 2.2 percent in July from June. The construction sector accounts for 6.3 percent of Britain’s economy. One could expect that traders have gotten used to good reports from … “Sterling Climbs as Construction Report Adds to Signs of Recovery”
Month: September 2013
Drop in Eurozone Employment Weighs on Euro
The latest economic news out of the eurozone has proved disappointing. For the second quarter, there has been a decline in employment, and that has many questioning the sustainability of the burgeoning economic recovery in the 17-nation currency region. Second quarter eurozone employment data has disappointed economists and Forex traders. Eurostat reports that the number of people with work fell 0.1 per cent from the first quarter of 2013 to the second quarter. Year over … “Drop in Eurozone Employment Weighs on Euro”
Peso Falls After Chilean Central Bank Meeting
The Chilean peso fell against the US dollar and the euro today after Chile’s central bank conducted a policy meeting and decided to leave its key interest rate unchanged. The Central Bank of Chile kept its main interest rate at 5 percent. The central bank spoke about high volatility on the financial markets created by uncertainty about US monetary policy and recovery in Europe. At the same time, it mentioned that slowdown of China’s … “Peso Falls After Chilean Central Bank Meeting”
Canadian Dollar Struggles for a Second Day
Canadian dollar is struggling again, facing difficulty for a second day. Yesterday, the loonie struggled against its major counterparts, and the same is happening against today. Mostly, it has to do with expectations of the Federal Reserve taper. With speculation that the Federal Reserve will decide to begin tapering its asset purchase program very soon, the US dollar is getting a bit of a boost. The quantitative easing has been … “Canadian Dollar Struggles for a Second Day”
GOLD: Bearish, Sells Off
GOLD: With continued weakness seeing GOLD violating the 1,348.00 level on Thursday, there is risk of further downside. Support stands at the 1,300.00 level and then the 1,272.12 level. A turn below here will turn attention to the 1,250.00 level and next the 1,215.00 level. Its daily RSI is bullish and pointing higher supporting this … “GOLD: Bearish, Sells Off”
Pound Soft Even as Carney Sees Recovery
The Great Britain pound was a bit soft even after Bank of England Governor Mark Carney signaled that the UK economy is recovering, leading to speculations that policy makers may raise interest rates sooner than was expected. Carney was speaking about the positive influence of stimulating policy, saying: Economy is picking up and the stimulus is working. He also added: By making policy more effective, … “Pound Soft Even as Carney Sees Recovery”
Unexpected Slump of Jobless Claims Boost US Dollar
The US dollar was able to halt its drop today as the unexpected slump of jobless claims reignited speculations about possible quantitative easing tampering from the Federal Reserve. The currency was not able to rise versus the Japanese yen. Claims for unemployment benefits decreased by as much as 31,000 to 292,000 last week, demonstrating the biggest drop since April 2006, instead of rising as was expected by economists. Many analysts were skeptical about … “Unexpected Slump of Jobless Claims Boost US Dollar”
Output Data Doesn’t Hurt Euro Too Much
While the euro was lower earlier, it is recovering some of its equanimity now. Even though factory output data disappointed, and the euro dropped, things are changing a bit, and the 17-nation currency is struggling its way higher as risk aversion fades a little bit. Earlier today, Eurostat released data about the eurozone’s manufacturing data. Factory output dropped by 1.5 per cent between June and July, representing … “Output Data Doesn’t Hurt Euro Too Much”
AUDUSD: Turns Lower From Key Resistance
AUDUSD: With the pair unable to break and hold above the 0.9305 level and tumbling lower on Wednesday, more weakness is likely in the days ahead. Support lies at the 0.9200 level with a breach of here turning focus to the 0.9100 level followed by the 0.9000 level. Further down, support stands at the 0.8900 … “AUDUSD: Turns Lower From Key Resistance”
Good News for the British Economy May Keep the Pound
September has been a good month for the British Pound against both the U.S. dollar and euro. For the most part, each significant U.K. economic release has had either a solid beat or at the very least a positive revision to a prior reading. The first week of September saw Manufacturing, Construction and Services PMI … “Good News for the British Economy May Keep the Pound”