The US dollar closed lower against other most-traded currencies, excluding the Japanese yen, after the most important event of this week (or perhaps even this month) — the Federal Reserve policy meeting. The Fed shocked the Forex market as it refrained from reduction of its stimulus program. Some market participants were surprised by the reaction as according to various polls about a third of analysts were expecting such decision. Yet most traders … “Dollar Ends Week Lower, Refuses to Surrender”
Month: September 2013
Pound Unable to Maintain One-Way Movement to Upside
The Great Britain closed lower today despite another positive economic report that added to evidences of recovery in the United Kingdom. Forex traders were concerned that the currency was going too long in one direction. Public sector net borrowing excluding temporary effects of financial interventions was at £13.2 billion in August. It was £1.3 billion lower than the budget deficit of £14.4 billion a year ago. Analysts have … “Pound Unable to Maintain One-Way Movement to Upside”
Loonie Retreats with Slowing Consumer Inflation
The Canadian dollar dropped today as growth of consumer prices slowed, giving the central bank no incentive to tighten its monetary policy. The currency was also falling on speculations that the previous rally was excessive. The Canadian Consumer Price Index rose 1.1 percent in August, year-on-year, after increasing 1.3 in the previous month. Monthly inflation remained at 0.1 percent. The data suggested that the Bank of Canada is in no hurry to raise … “Loonie Retreats with Slowing Consumer Inflation”
Euro Gets Help from Improved Morale
Euro is getting a little help today, thanks to improved morale in the eurozone. Even though the 17-nation currency is struggling against the US dollar, the euro is higher against some of its other major counterparts. There is a lot for Forex traders to think about as this week draws to a close. The European Commission announced earlier today that consumer sentiment has improved in the eurozone. A rise from -15.6 points in August … “Euro Gets Help from Improved Morale”
US Dollar Slightly Higher on Speculation of “Octaper”
US dollar is a little bit higher today. Some traders are looking at the recent and positive US data, and others are considering the Federal Reserves somewhat surprising decision earlier this week to put off the taper. But what seems to be offering the most help to the US dollar right now is the possibility of the Fed beginning its asset purchase program in October. Even though the Federal Reserve decided not … “US Dollar Slightly Higher on Speculation of “Octaper””
Indonesian Rupiah Struggles to Keep Gains
The Indonesian rupiah was another Asian currency that profited from the Federal Reserve announcement, but is moving down right now on speculations that the rally was overdone. The Fed shocked the Forex market as the US central bank decided to keep quantitative easing intact. The riskier currencies (including the rupiah and the ringgit) soared, while safer ones experienced sell-off. Now, though, the rally stalled on speculations that the currencies have rallied … “Indonesian Rupiah Struggles to Keep Gains”
Malaysian Ringgit Head to Best Week Since 1998
The Malaysian ringgit fell today, but still headed to the best weekly rally since 1998 as absence of quantitative easing tampering from the Federal Reserve spurred riskier currencies of emerging markets. The Fed’s decision led to the huge rally of higher-yielding currencies and they were able to keep the most of its gains even though some of them (including the ringgit) retreated a little. The ringgit has rallied 4 percent this week and other Asian … “Malaysian Ringgit Head to Best Week Since 1998”
British Council: Study Stint Overseas “Essential” to UK Competitiveness
UK employers are increasingly attracted to British students who have studied abroad, according to the British Council. Despite the UK now boasting six of the world’s top 20 universities, the British Council believe that in order to maintain and improve a skilled workforce it is vital that students get exposure to overseas university education. The … “British Council: Study Stint Overseas “Essential” to UK Competitiveness”
Impending deadlock in Congress spells trouble for the market
Now that the dust has settled upon the furore that has surrounded the FOMC’s decision regarding whether to begin tapering the current $85 billion of asset purchases, the markets are likely to take stock and aim their attention to the next crisis. America being America, there happens to be one just around the corner, with … “Impending deadlock in Congress spells trouble for the market”
Yen Experiences Massive Sell-Off
The Japanese yen experienced a massive sell-off as Forex traders felt no need for the safe currency in the trading environment that was favorable to risky investments. The currency slumped even against the US dollar. The traders’ mood was elevated after the US Federal Reserve refrained from tampering its quantitative easing program. For a long time, market participants were concerned about possible negative implications of QE reduction on vulnerable economies of the world. … “Yen Experiences Massive Sell-Off”