The Brazilian real managed to gain on the US dollar today even as economic indicators in Brazil were not supportive and led to speculations that the central bank will be limited in its ability to raise interest rates. Brazil’s economic activity contracted by 0.01 percent in September from the prior month, according to the Central Bank of Brazil. There are concerns that the nation’s budget deficit will lead to credit rating cuts. All these … “Brazilian Real Gains vs. Dollar, Unhindered by Poor Fundamentals”
Month: November 2013
Currency wars redux – is USD next?
Who wants a strong currency? If that question was for an opinion poll of finance ministers and central bankers the response would be a firm no. But in reality no poll is needed. The last couple of weeks’ action has spoken louder than words. Forex traders were once again reminded that when a currency makes … “Currency wars redux – is USD next?”
Euro Struggles After GDP Data
Euro is struggling today, mainly due to disappointing economic data. The latest GDP numbers are in, and they show that the eurozone recovery is barely hanging on. It’s not helping, either, that German and France are having their own economic struggles right now. There’s little to support the euro, and there are concerns that another recession could be coming. The eurozone has been plagued … “Euro Struggles After GDP Data”
Yen Slides on Comments from Taro Aso
The latest comments from Japanese Finance Minister Taro Aso are leading to losses for the Japanese yen. Aso indicated that Japanese policymakers remain poised to intervene in the markets in their attempts to keep the yen weak. Additionally, optimism that the United States will continue with its stimulus program is prompting risk appetite. Japanese stocks got a boost earlier, and the yen is dropping against its major counterparts now, … “Yen Slides on Comments from Taro Aso”
Canadian Dollar Stronger After Yellen’s Speech
The Canadian dollar rallied against its US counterpart yesterday and remained strong today on prospects for prolonged monetary stimulus from the Federal Reserve. The currency also rose against the Japanese yen, but was flat against the euro. Janet Yellen, who is nominated to be the next chairman of the Federal Reserve, suggested that stimulus should not be reduced until there are more evidences of improvements in the economy and the labor market. … “Canadian Dollar Stronger After Yellen’s Speech”
BoE Inflation Report Sends Pound Higher
The Great Britain pound surged on the previous trading session after the Bank of England issued a very positive outlook, leading to speculations that it may tighten monetary policy sooner than was previously expected. The currency was little changed today. As was expected, BoE Governor Mark Carney was very optimistic in the inflation report, revising most forecasts positively. Of a particular note is the prediction that the unemployment rate will … “BoE Inflation Report Sends Pound Higher”
Industrial Output Data Weighs on Euro
The latest news out of the eurozone is weighing on the euro, sending the 17-nation currency lower against its major counterparts today. Once again, concerns about the viability of the recent eurozone recovery are causing problems for the euro on the Forex market. Earlier today, the industrial output numbers from the eurozone were released. Eurostat reports that industrial output fell by 0.5 per cent across the eurozone in September. This news once again … “Industrial Output Data Weighs on Euro”
US Dollar Mixed to Higher on Uncertainty
There is a lot of uncertainty in the markets right now, and that is reflected in the situation with the greenback. The US dollar is mixed right now, tending a little higher in some cases. Mostly, though, the greenback is moving between gains and losses against its major counterparts. There is a lot to be uncertain about right now. Economic data from around the world has been generally good lately, but … “US Dollar Mixed to Higher on Uncertainty”
South Korean Won Pares Losses with Help from Domestic Fundamentals
The South Korean won was flat, paring decline, as domestic fundamentals helped the currency to overcome the general risk-negative market sentiment. Talks about the potential stimulus reduction by the Federal Reserve continued to spoil traders’ willingness to risk. Such speculations intensified after Atlanta Fed President Dennis Lockhart signaled that such reduction may happen as early as December. The won was able to erase losses despite the negative market sentiment as South … “South Korean Won Pares Losses with Help from Domestic Fundamentals”
Indian Rupee Rises Even as Inflation Accelerates
The Indian rupee rose today as nation’s inflation accelerated more than was predicted. This is not necessary a positive thing as the currency has already lost much of its purchasing power and rising consumer prices are hurting the Indians. The Consumer Prices Index rose 10.09 percent in October from a year ago following the 9.84 percent increase in September. Analysts predicted a 9.9 percent increase. It is possible India’s … “Indian Rupee Rises Even as Inflation Accelerates”