It looks the rally of the Great Britain pound has run out of steam as the currency dropped yesterday. It attempted to bounce against the US dollar today, but so far the gains were nowhere near yesterday’s drop. It is really no surprise that the sterling has backed down considering how long it was moving to the upside. It is rare for a currency to move in one direction for a long time … “Pound’s Rally Ran Out of Steam?”
Month: October 2013
Dollar Subdued, Has Potential for Relief
The US dollar remains subdued by the budget impasse, but may find a relief soon on signs that politicians become more willing to find a consensus as a government shutdown drags on. The currency slid versus the euro, gained on the Great Britain pound and moved sideways against the Japanese yen. President Barack Obama said that there will not be negotiations on the budget until the Republicans raise the debt ceiling without conditions. There … “Dollar Subdued, Has Potential for Relief”
NZ Dollar Drops Despite Favorable Fundamentals
The New Zealand dollar dropped today on concerns that the US government shutdown will hamper global economy growth. The currency remained weak even though other fundamentals were highly supportive. Reserve Bank of New Zealand Governor Graeme Wheeler signaled that the central bank may start raising interest rates as soon as the next year. It confirmed speculators’ expectations and the previous statement of the RBNZ. China’s non-manufacturing Purchasing Mangers’ … “NZ Dollar Drops Despite Favorable Fundamentals”
Brazilian Real Falls as Moody’s Changes Outlook
The Brazilian real weakened today after Moody’s Investor Service maintained Brazil’s government bond rating, but changed the outlook from positive to stable. Moody’s confirmed Brazil’s Baa2 rating, but changed the outlook to stable from positive. The rating agency cited following reasons for the decision: 1) Key credit metrics are deteriorating, especially Brazil’s government debt-to-GDP and the investment-to-GDP ratios, which are weaker than those of other sovereigns … “Brazilian Real Falls as Moody’s Changes Outlook”
Japanese Yen Trades Mixed
Japanese yen is trading mixed today as concerns about what’s next for the United States takes center stage. News out of Japan is also affecting the Forex market, but mostly the focus is on the United States and the eurozone. Japan had a brief moment in the spotlight earlier this week. Prime Minister Shinzo Abe announced that Japan’s sales tax would be raised next year. The idea is to boost … “Japanese Yen Trades Mixed”
Euro Strengthens After Draghi Comments, Dollar Weakness
Euro is strengthening today, heading to levels not seen since earlier this year. Concerns about what’s next for the US dollar are supporting the euro, and the 17-nation currency is also getting help from a resolution to issues in Italy and a vote of confidence from ECB President Mario Draghi. Today, the market is all about stability, and it appears that the euro is offering it. With the government shutdown in the United … “Euro Strengthens After Draghi Comments, Dollar Weakness”
Sirix Community Multibroker Network Announced by Leverate
Leverate, which provides software solutions for brokers, introduces a significant powerful enhancement to its social platform: one big community that brings together traders from all participating brokers. With this, Leverate will command a huge social network for forex traders. A trader with one broker can now copy a trade of another trader with another broker. … “Sirix Community Multibroker Network Announced by Leverate”
QE tapering now unlikely in 2013
Even if the government shutdown and the debt ceiling issues are resolved soon, the Fed is unlikely to taper bond buys in the remainder of 2013, as delayed and distorted data as well as ongoing political uncertainty still weigh, says Simon Smith of FxPro. In the interview below, Smith also discusses downside risks in the … “QE tapering now unlikely in 2013”
USD/CAD: Trading the Canadian Ivey PMI Oct 2013
Canadian Ivey PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers from a wide range of economic sectors. Respondents are surveyed for their view of the economy and business conditions in Canada. A reading which is higher than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible … “USD/CAD: Trading the Canadian Ivey PMI Oct 2013”
Polish Zloty Firm as NBP Does Not Mention Interest Rate Cut
The Polish zloty was firm against the US dollar today after the nation’s central bank left interest rates unchanged yesterday. Policy makers did not mention possibility of an interest rate cut and this was positive for the currency. The Narodowy Bank Polski left its main interest rate at 2.5 percent. The central bank said in the statement about the Polish economy: In the opinion of the Council, gradual economic recovery is likely to continue … “Polish Zloty Firm as NBP Does Not Mention Interest Rate Cut”