The New Zealand dollar ended this week with losses as traders shunned riskier currencies ahead of the next week’s Federal Reserve monetary policy meeting. The decline was limited as the central bank of New Zealand itself considers raising interest rates in the future. The Fed will announce its decision on December 18. Market participants were speculating that moderate withdrawal of stimulus is possible. Such talks hurt the appeal of assets … “NZD Falls, Central Bank’s Outlook Trims Weekly Losses”
Month: December 2013
BoE Does Not Plan Raising Interest Rate Soon, GBP Down
The Great Britain pound ended Friday with losses as UK policy makers demonstrated willingness to postpone an interest rate hike until economic recovery becomes resilient. Spencer Dale, Executive Director and chief economist of the Bank of England, said: We will tighten policy only when we are well along the road to recovery. Yes: interest rates will rise at some point. But only against a far stronger economic … “BoE Does Not Plan Raising Interest Rate Soon, GBP Down”
Aussie Ends Friday with Gains, Frustrating Stevens
The Australian dollar ended Friday with gains even though the central bank’s chief signaled that policy makers would like the currency to weaken. The Aussie was still down heavily over the week, being the worst performer among most-traded currencies. Reserve Bank of Australia Governor Glenn Stevens explained that weaker currency is preferable to lower interest rates as a way to boost economic growth, saying that AUD/USD at 0.85 … “Aussie Ends Friday with Gains, Frustrating Stevens”
Brazilian Real Suffers from Fed Tapering Speculations
The Brazilian real was fluctuating between gains and losses today as traders were weighing chances of US Federal Reserve stimulus tapering against prospects for an intervention from the Brazilian central bank. The currency trades below the opening level as of now. The real has lost 5 percent of its value this quarter. Alexandre Tombini, Governor of the Central Bank of Brazil, reiterated this week his pledge to intervene supporting the currency. Meanwhile, investors … “Brazilian Real Suffers from Fed Tapering Speculations”
Peso Stronger After Chilean Central Bank Avoids Interest Rate Cut
The Chilean peso advanced today after the nation’s central bank refrained from an interest rate cut on yesterday’s monetary policy meeting as inflation accelerated more than was expected. The Central Bank of Chile kept its main interest rate at 4.5 percent. The central bank issued rather downbeat statement: The Chilean economy has been gradually losing strength. Output is growing slightly below trend, and a slowdown is observed … “Peso Stronger After Chilean Central Bank Avoids Interest Rate Cut”
Japanese Rebounds as Risk Aversion Appears
Risk aversion is back as US data and Fed taper expectations weigh on global stocks. The yen is rebounding against its major counterparts, paring losses seen yesterday. Recently, the yen hit a low not seen since 2008 against the US dollar. However, the yen is rebounding now, thanks in large part to the fact that risk aversion is making its appearance right now. Data out of the United … “Japanese Rebounds as Risk Aversion Appears”
Vote for Forex Crunch in the 2013 STAR Awards program
Forex Crunch has made it as a finalist in Trader Planet’s Star Awards 2013. The site has been nominated in the Blog category. Voting is open and ends on January 31 2014. You are welcome to vote for Forex Crunch here. Each voter will be registered in the STAR Awards Raffle for a chance to … “Vote for Forex Crunch in the 2013 STAR Awards program”
40% of QE tapering in December; more German opposition
After the Fed has largely managed to separate QE tapering from expectations of rate rises, there is a better chance of a “Dectaper” – QE tapering in December: around 40%, says Simon Smith of FxPro. In the interview below, Smith also discusses other topics, including the different directions in which ECB members are pushing, and the … “40% of QE tapering in December; more German opposition”
Pound Weaker vs. Dollar Ahead of Fed Meeting
The Great Britain pound remained soft against the US dollar as the date of the December monetary policy meeting of the Federal Reserve is nearing and talks about potential stimulus reduction intensify. The currency was higher against other majors, including the euro and the Japanese yen. The Fed will meet very soon, on December 18 to be specific. Recent positive macroeconomic data and signs of budget agreement added fuel to speculations about quantitative easing … “Pound Weaker vs. Dollar Ahead of Fed Meeting”
Dollar Rallies After Retail Sales Report, Uncertainty Remains
The US dollar jumped today after data showed an increase of retail sales. There were bad reports too, adding to uncertainty about the next week’s monetary policy decision of the Federal Reserve. Retail sales grew 0.7 percent, exceeding analysts’ expectations of 0.6 percent by a small degree. At the same time, unemployment claims jumped sharply from 300,000 to 368,000 during last week. Next week’s Fed policy meeting is … “Dollar Rallies After Retail Sales Report, Uncertainty Remains”