Predicting the direction of forex markets is notoriously difficult, in fact there are many people in the academic world who believe it to be almost impossible – at least on a short term basis. On longer time frames, there is more agreement, and many of those who study macroeconomics believe that the trick to predicting … “How the trade balance affects currency prices”
Month: December 2013
Yen Weakness Expected to Continue in 2014
Current yen weakness is expected to continue into 2014, thanks in large part to Abenomics. With the BOJ continuing to add money to the economy, it’s not much of a surprise that the yen is likely to remain weak. During 2013, the yen was one of the worst performers of the major currencies. Yen lost more than 20 percent of its value relative to the US dollar, and it is likely to lose close to 18 percent … “Yen Weakness Expected to Continue in 2014”
Hope for Economic Recovery Attracts Traders to Pound
The Great Britain pound rose today, rallying against other most-traded currencies, as traders were attracted to the UK currency because of signs of economic recovery in the United Kingdom. December 26 is a bank holiday in the UK, meaning that Britons celebrate two days in a row: Christmas and the Boxing Day. As a result, there is not much news from Britain for now. This did not prevent the sterling from rising as investors favor … “Hope for Economic Recovery Attracts Traders to Pound”
Dollar Weaker After Unemployment Claims Data
The US dollar was relatively soft against the euro and the Great Britain pound today after the report about unemployment claims. The currency was flat against the Japanese yen after opening sharply higher and also traded sideways versus the Swiss franc. Initial jobless claims tumbled as much as 42,000 to 338,000 last week. The median analysts’ estimate was at 346,000. At the same time, continuing claims jumped by 46,000 to 2.92 million, reaching … “Dollar Weaker After Unemployment Claims Data”
Euro on Track to be a Top Performer for 2013
Euro continues on track to be the top performer of 2013 with today’s performance. Much of that has to do with the fact the issues that have been plaguing the 17-nation currency region — from recession to political problems — are mostly resolved. Or at least have been moved to the back burner. For now, the euro continues to see mostly gains against its major counterparts. Euro is heading higher against the US dollar and the Japanese … “Euro on Track to be a Top Performer for 2013”
Chinese Yuan Weakens, Has Chances for Recovery
The Chinese yuan weakened today as last week’s monetary policy decision of the US Federal Reserve continues to hurt the market sentiment, but may yet rebound on prospects for reforms in the Asian nation. The Fed decided to reduce the size of its asset-purchase program during the monetary policy meeting last week. Since then, several US policy makers have talked about additional stimulus reduction and this hurt riskier currencies. The Chinese government … “Chinese Yuan Weakens, Has Chances for Recovery”
Yen Opens Sharply Lower After Holiday
The Japanese yen opened sharply lower today as some policy makers were worried about slowing economic growth. Such worries suggest that the central bank will continue to pursue the path of monetary easing to spur growth. The Bank of Japan policy minutes were rather optimistic as most policy makers were expecting economic expansion to persist. Yet one central bank’s member was worried that the recent slowdown of gross … “Yen Opens Sharply Lower After Holiday”
Dollar Ends Trading with Gains, Economic Data Helps
The US dollar ended today’s short trading session with gains against most major currencies, though falling versus the Great Britain pound, as the positive outlook for the US economy led to speculations about additional quantitative easing tapering from the Federal Reserve. Indeed, macroeconomic data supported such view. Durable goods orders climbed 3.5 percent in November, exceeding specialists’ expectations, after falling 0.7 percent in October. New … “Dollar Ends Trading with Gains, Economic Data Helps”
Canadian Dollar Falls After Three Days of Gains
The Canadian dollar fell for the first day in four against its US counterpart and was flat versus the euro and the Japanese yen on the outlook for monetary policies of Canada’s and the US central banks. It is expected that the Federal Reserve will continue to reduce its monetary stimulus after tapering quantitative easing this month as the US economy becomes stronger. Today’s data suggested that economic recovery is indeed gaining momentum. … “Canadian Dollar Falls After Three Days of Gains”
Yen Remains Subdued After BoJ Report
The Japanese yen remained subdued today even after the Bank of Japan released rather optimistic report, promising growth for the nation’s economy. The BoJ released its Monthly Report of Recent Economic and Financial Developments today. The report said: With regard to the outlook, Japan’s economy is expected to continue a moderate recovery as a trend, while it will be affected by the front-loaded increase and subsequent decline in demand prior to and after the consumption tax hike. … “Yen Remains Subdued After BoJ Report”