The Chinese yuan slid today as speculations persisted that China’s central bank is intervening in an attempt to prevent gains of currency, hurting those investors who hoped to use the yuan in carry trade. The yuan has been considered one of the best currencies for carry traders due to relatively high interest rates in China and low volatility of the exchange rate. But now the currency became one of the worst as it was falling amid speculations … “Carry Traders Suffer from Decline of Yuan”
Month: February 2014
Brazilian Central Bank Raises Interest Rate, Real Gains
The Brazilian real rose today after Brazil’s central bank raised the Selic rate yesterday, extending the string of rate increases. The increase was smaller than last month’s one, leading to concerns that the central bank will pause rate hikes. Still, the nation’s economy looks good, meaning that Brazil’s currency is still attractive to overseas investors. The Central Bank of Brazil boosted its main interest rate by 0.25 … “Brazilian Central Bank Raises Interest Rate, Real Gains”
Euro Drops with Speculation on Next Week’s ECB Meeting
Eurozone lending continues to be a problem, and that has some thinking that the ECB will have no choice but to ease monetary policy further when they meet next week. It’s also not helping that China is slowing down, and that it appears that Germany isn’t going to be able to kickstart the economy all on its own. The latest numbers on lending in the eurozone paint a picture of a credit … “Euro Drops with Speculation on Next Week’s ECB Meeting”
EUR/USD: Trading the European CPI Flash Estimate
European Flash Estimate CPI, which is released each month, is an inflation index which measures the change in the price of goods and services charged to consumers. A reading which is higher than the market forecast is bullish for the euro. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday … “EUR/USD: Trading the European CPI Flash Estimate”
Aussie Drops for Third Session with Capital Spending
The Australian dollar extended its drop to the third consecutive session today as capital spending fell more than was expected, hurting the traders’ sentiment that was already sour due to concerns about signs of economic slowdown in China. Total new capital expenditures were down 5.7 percent in the fourth quarter of 2013 from a year ago, while economists have counted on a drop by just 1.0 percent. The previous quarter’s growth … “Aussie Drops for Third Session with Capital Spending”
News from USA Turns Positive, USD Rallies
Economic news from the United States turned positive, increasing the attractiveness of the US currency. The dollar rallied against the euro yesterday and retained its gains today. The rally versus the Great Britain pound and the Japanese yen was more limited. The most important reason for optimism was the housing data. New home sales rose to the seasonally adjusted annual rate of 468,000 in January from 427,000 in December. Forecasters have predicted a drop to 406,000, … “News from USA Turns Positive, USD Rallies”
Mexican Peso Hurt by Unexpected Trade Deficit
The Mexican peso weakened today as the nation’s trade balance posted an unexpected deficit last month, fueling concerns about economic growth in the country. Mexico’s trade balance had a deficit of $3.2 billion in January. Economists have counted on a surplus of $314 million. Consumer confidence dropped to 84.5 last month, reaching the lowest level since April 2010 and missing the median estimate of 90.1. The poor domestic data, coupled with the general adverse … “Mexican Peso Hurt by Unexpected Trade Deficit”
Rand Drops as Economic Growth Projection Lowered
The South African rand dropped today as Finance Minister Pravin Gordhan lowered the economic growth outlook, making nation’s assets less attractive to investors. The general market sentiment was also adverse to the currency. South Africa’s growth projection for 2014 was lowered to 2.7 percent from the October estimate of 3 percent. It is expected that in three yearsâ time the government debt may increase to 48.3 percent of gross domestic … “Rand Drops as Economic Growth Projection Lowered”
Aussie Falls on Concerns About China
Australian dollar is vulnerable right now, and heading lower against its major counterparts. Worries about the economic situation in China, as well as concerns about commodities, are weighing on the Aussie today. China is Australia’s biggest export market, and when China starts to slow down, things slow for Australia as well. With the prospect of slowing in China, the Aussie is seeing some losses against its major counterparts on the Forex market. … “Aussie Falls on Concerns About China”
Canadian Dollar Mostly Lower Against Counterparts
Canadian dollar is mostly lower today, drifting a bit as Forex traders consider their next moves. Many traders are in wait and see mode, with data releases coming up and with questions about what’s next for the Bank of Canada. Loonie is heading a bit lower against many of its major counterparts today. The currency is drifting a bit with many Forex traders waiting to see what is … “Canadian Dollar Mostly Lower Against Counterparts”