The Mexican peso fell today as Forex market participants were speculating that the US Federal Reserve will continue to reduce its monetary stimulus, hurting riskier currencies. Several Fed members talked this week about additional stimulus cuts, confirming that last week’s tapering was just a beginning. On one hand, such talks hurt high-beta currencies, including the peso. On the other, peso’s volatility fell after the US … “Mexican Peso Drops, Volatility Eases”
Month: December 2013
Euro Struggles Against Other Currencies on Economic Data
Euro is struggling against other currencies right now, mostly lower as other currencies gain the upper hand, thanks to better economic data. Better data reports in the United States and United Kingdom are helping the dollar and the pound. Optimism for other countries is helping keep currencies like the dollar and the pound higher against the euro today. In the United States, durable goods orders are helping boost the greenback, as is the news … “Euro Struggles Against Other Currencies on Economic Data”
USD Rebounds, Rises for Second Day vs. JPY
The US dollar was falling yesterday, but bounced today on speculations that the Federal Reserve will continue cutting monetary stimulus. The greenback rallied against the Japanese yen for the second session on prospects that the Bank of Japan will keep its monetary policy accommodative. The US currency rallied last week after the Fed decided to start tapering of quantitative easing. The dollar retreated at the start of this week as traders were quitting the bets … “USD Rebounds, Rises for Second Day vs. JPY”
Canadian Dollar Rises on GDP, Loses Gains
The Canadian dollar advanced yesterday after data showed that the nation’s economy grew in October faster than was expected. The currency retreated versus the US dollar and the euro today, but retained its gains versus the Japanese yen. Canadian gross domestic product expanded 0.3 percent in October, at the same rate as in September. Analysts have expected it to grow just 0.1 percent. The expansion was led by the manufacturing sector. The loonie … “Canadian Dollar Rises on GDP, Loses Gains”
Political Unrest Continues to Undermine Thai Bath’s Strength
The Thai baht fell today as the prolonged political unrest makes the currency very unappealing to investors, who do not like uncertainty and risks associated with social turmoil. Protests in Thailand persist and show no sign that they may end anytime soon. Prime Minister Yingluck Shinawatra scheduled an election on February 2 after she dissolved the parliament, but demonstrators are trying to prevent candidates from registering for the election. … “Political Unrest Continues to Undermine Thai Bath’s Strength”
Real Gains as Traders Expect Central Bank’s Support
The Brazilian real rose today on speculations that the central bank will support the currency after the recent decline that followed the US Federal Reserve’s policy announcement. The real fell last week, as well as many currencies of emerging economies, after the Fed announced its quantitative easing tapering. The currency rebounded as investors were exiting bets on additional gains of the US dollar before the year-end. The real is still under pressure from … “Real Gains as Traders Expect Central Bank’s Support”
Pound Gets a Boost from Optimism for 2014
UK pound is getting a boost today, thanks in large part to optimism related to the economy. Many investors expect to see economic improvement for 2014, built on the improvements seen in 2013. As a result, sterling is getting a little help and support today. Thanks to the economic improvement seen in the last six months, the UK pound is on track to see overall gains against the US dollar this year. Sterling is also getting a boost … “Pound Gets a Boost from Optimism for 2014”
Week of Tapering Was Not as Good for Dollar as One Might Expect
The major event on the Forex market this week was undoubtedly quantitative easing tapering by the Federal Reserve. The dollar rallied after the Fed announcement, but quite a few major currencies were surprisingly strong against the greenback even after the tapering. The US central bank decided to trim its monthly asset purchase by $10 billion. The decision was not completely unexpected, but traders were not unsure of timing and there were … “Week of Tapering Was Not as Good for Dollar as One Might Expect”
Pound Drops for Second Day, Losing Support from Fundamentals
Economic news from the United Kingdom was rather poor today, making the Great Britain pound fall for the second session, hurting optimism about recovery in the country. The GfK Consumer Confidence index dipped from -12 to -13 in December instead of rising as was predicted. Nick Moon, Managing Director of Social Research at GfK, expressed his worries: Although a single point move is not statistically significant, what matters is … “Pound Drops for Second Day, Losing Support from Fundamentals”
Forex Forecast for 2014 (Video)
The prolonged global recession remains a key influence on currency markets as we wait to see what role monetary policies from major central banks of the world will continue to play in 2014. A number of macroeconomic factors clipped the loonie’s wings this year—we’ve come to a point now where it’s clear the underpinning of … “Forex Forecast for 2014 (Video)”