The Israeli new shekel fell today as Israel’s government voiced concern that a strong currency damages nation’s exports and economy. Israeli exports tumbled 16 percent last quarter following the 8.7 percent rally of the shekel over this year. Officials called the strong exchange rate “a mortal blow to Israeli exports”. As a result, they have to seek new trading partners as economies in Israel’s traditional markets were weakening. USD/ILS ticked … “Israeli Government Does Not Want Strong Shekel”
Month: December 2013
Thai Baht Rallies as Shinawatra Takes Drastic Measures
The Thai baht advanced today as Prime Minister Yingluck Shinawatra took drastic measures to ease political tensions in the country, dissolving the parliament. Previously, protests against the current government were pushing the baht down and some analysts said that the currency became too oversold, leading to the current rally. Yet most experts think that the rally will likely be very short. It is hard to believe the baht will be … “Thai Baht Rallies as Shinawatra Takes Drastic Measures”
Perfect storm for QE Tapering?
One week before the Fed decision, there is more to support a decision on tapering bond buys in December after the better than expected Non-Farm Payrolls report. Also the Fed’s favorite measure and the political scene seem set. Is the market pricing a decision on QE tapering? Not exactly. JOLTS Ben Bernanke is still the … “Perfect storm for QE Tapering?”
Loonie Rides Higher on Back of Commodities’ Rally
The Canadian dollar advanced today with help of rising commodity prices. Loonie’s performance is strongly correlated to moves of prices for raw materials. Futures for crude oil, the major Canadian export, rose as much as 1.21 percent to $98.52 per barrel in New York today. Copper rose 0.26 percent to $3.2665 per pound. The Standard & Poorâs GSCI Index of 24 commodities added 0.8 percent. Raw materials and other risky … “Loonie Rides Higher on Back of Commodities’ Rally”
Mixed Data Does Not Help Sterling Define Trend
Today’s macroeconomic data from Great Britain was mixed (though without any really bad reports), leading to the rally of the pound versus the US dollar and the drop against the euro and the Japanese yen. The house price balance of Royal Institution of Chartered Surveyors was at 58 percent in November, a bit above the October reading of 57 percent, but below forecast 59 percent. Both industrial and manufacturing production grew 0.4 percent in October … “Mixed Data Does Not Help Sterling Define Trend”
Banking Deal Expectations Boost Euro
Euro is heading higher right now, even hitting a six-week high against the US dollar at one point, thanks to expectations of a banking deal in the eurozone. Many expect a banking deal to bring greater stability to the euro, and that is helping the situation right now. Euro is heading higher right now as leaders in the eurozone appear closer to working out a deal that will create a tighter banking union in the 17-nation currency … “Banking Deal Expectations Boost Euro”
US Dollar Struggles on Expectations of March Taper
US dollar is struggling today, mostly lower against its major counterparts as comments from Federal Reserve officials seem to indicate that the asset purchase taper isn’t likely until perhaps March. With hopes for the taper to start in December fading, the greenback is showing some weakness. Even with the recent economic data that has been better than expected, the US dollar is heading a bit lower … “US Dollar Struggles on Expectations of March Taper”
Aussie Flat as Fundamentals Provide No Help
The Australian dollar slipped today as domestic fundamentals were not particularly supportive for the currency. The Aussie managed to pare losses and is trading near the opening level right now. The number of home loans rose 1.0 percent in October from the previous month. The reading was a bit smaller than predicted 1.3 percent and way below the September increase of 3.5 percent. The business confidence index of National Australia Bank ticked down a little … “Aussie Flat as Fundamentals Provide No Help”
Swedish Krona Declines with Contracting Industrial Production
The Swedish krona declined today after a report showed that nation’s industrial production contracted in October, frustrating experts who have expected an increase of the indicator. Statistics Sweden reported that industrial output shrank 1.7 percent in October from September and 5.0 percent from a year ago, seasonally adjusted. Analysts predicted an increase by 0.9 percent from the preceding month. The report said: Development remained mixed within the industry sub-sectors … “Swedish Krona Declines with Contracting Industrial Production”
Slow Japan’s Growth & Risk Appetite Hurt Appeal of Yen
The Japanese yen was down today as Japan’s economic growth missed estimates and the risk-positive sentiment of Forex traders made the currency unnecessary in its role as a safe haven. According to the second estimate, Japanese gross domestic product expanded 0.3 percent in the third quarter of this year. It was below analysts’ expectations and the previous official estimate of 0.5 percent. The current account posted a deficit in October, while economists hoped for a surplus. The data … “Slow Japan’s Growth & Risk Appetite Hurt Appeal of Yen”