Japanese yen is gaining ground today as risk aversion makes an appearance and low beta currencies are sought for their safe haven qualities. With concerns over the possibilities in Syria, and with equity losses, Forex traders are turning to safety. Japanese yen is higher almost across the board today as risk aversion sets in. Overnight losses in Japanese stocks are prompting gains for the yen as traders look for safe … “Safe Haven Demand Helps Japanese Yen”
Month: September 2013
EUR/USD:Trading the University of Michigan Consumer Sentiment Index
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. A reading which is higher than the forecast is bullish for the US dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at 13:55 GMT. Indicator Background The University of Michigan Consumer Sentiment Index, which is released monthly, is … “EUR/USD:Trading the University of Michigan Consumer Sentiment Index”
China’s Growth Benefits Thai Baht
The Thai baht advanced today as signs of economic growth in China improved the investors’ risk sentiment, leading to increasing demand for assets of emerging economies. Recent macroeconomic data suggests that China’s growth remains robust, despite previous signs of weakness. It made traders more interested in higher-yielding currencies. The baht profited from this as capital inflows into Thailand increased. Overseas funds expanded their holding of Thai stocks by more … “China’s Growth Benefits Thai Baht”
Australian Dollar Dips on Disappointing Employment Data
The Australian dollar dipped today after the employment report came out far worse than was expected, triggering speculations about possible interest rate cut. Australian employment decreased by 10,800 jobs in August, while analysts have anticipated an increase by roughly the same amount. This reading followed the July drop by 11,400. As a result, the unemployment rate increased from 5.7 percent to 5.8 percent (it was expected). The poor data … “Australian Dollar Dips on Disappointing Employment Data”
NZ Dollar Climbs as RBNZ Mentions Interest Rate Hike
The New Zealand dollar climbed today after the Reserve Bank of New Zealand kept its key Official Cash Rate (OCR) unchanged, but mentioned that an interest rate hike probably will be required next year. The RBNZ kept its main interest rate at 2.5 percent at today’s policy meeting. Reserve Bank Governor Graeme Wheeler said in the accompanying statement that the outlook for the global economy “remains mixed”. … “NZ Dollar Climbs as RBNZ Mentions Interest Rate Hike”
Fears of War in Syria No Longer Support Dollar
The US dollar was soft today as possibility of a peaceful resolution of the situation in Syria made Forex traders less interested in the currency as a protection against geopolitical risks. US President Barack Obama asked the Congress to delay the vote on military actions against Syria. Obama decided to postpone voting after Russia offered to control usage of Syrian chemical weapons. The probability of a diplomatic resolution of the conflict made the dollar less attractive as a safe haven and the Dollar … “Fears of War in Syria No Longer Support Dollar”
Fed tapering could trigger new financial crisis
The US Federal Reserve is stuck between a rock and a hard place with regards to winding down its quantitative easing programme. Carry on and it will inflate dangerous financial market bubbles, withdraw it and it risks causing a new financial crisis, which also poses a dilemma in terms of the direction of forex markets. … “Fed tapering could trigger new financial crisis”
Economic Outlook Helps the Loonie Against the Greenback
The Canadian dollar is getting some help against the US dollar today, thanks to the economic outlook, as well as a bit of risk appetite as tension in the Middle East ease a little bit. With expectations that the Canadian economy will be able to hold its own, the loonie is getting a little help. The latest Canadian economy data was better than expected, with the jobs forecast surprising to the upside. While the US jobs … “Economic Outlook Helps the Loonie Against the Greenback”
Euro Mostly Rangebound Today as Traders Wait for FOMC
Euro is mostly rangebound today, with a slight propensity toward weakness against currencies that aren’t the US dollar. There is a lot happening right now, and many traders seem ready to wait until next week, and the next FOMC announcement. There is a lot happening unexpectedly right now. US nonfarm payrolls didn’t offer the expected performance last week, and there is increased hope for a diplomatic solution … “Euro Mostly Rangebound Today as Traders Wait for FOMC”
Vietnamese Dong Recovers After Decline
The Vietnamese dong dipped today together with government bonds, but managed to recover later. Economists were speculating that credit growth in the country is accelerating, improving prospects for the economy. Experts reported that the value of outstanding loans was growing and may reach the central bank’s target this year. This is not good for securities as banks have fewer funds to buy them, but a good sign for the country’s economy. … “Vietnamese Dong Recovers After Decline”