The euro touched a three-week high against the US dollar earlier in trading, thanks in large part to the latest GDP numbers out of Germany and France. Eurozone GDP for the fourth quarter of 2013 benefited from this development, and the euro received a boost. According to the latest news out of the eurozone, GDP for the fourth quarter of 2013 rose 0.3 per cent. This beat the forecast of an increase of 0.2 per cent and is providing some support for the euro … “Euro Reaches Three-Week High Against US Dollar”
Month: February 2014
Falling Inflation Helps Rupee Maintain Rally
The Indian rupee maintained its strength on speculations that falling inflation should attract overseas investors to nation’s assets. There are concerns, though, that buying of dollars by domestic importers may limit gains. Wholesale inflation fell to 5.05 percent in January on an annual basis from 6.16 percent in December. Consumer inflation was at the two-year low of 8.79 percent. The rupee, which was rising previously on shrinking trade deficit, profited … “Falling Inflation Helps Rupee Maintain Rally”
Taiwan Dollar Attempts to Stabilize
The Taiwan dollar rose today on speculation that the currency is going to stabilize after the big drop. Taiwan’s dollar was the weakest among Asian currencies after the Malaysian ringgit. The Taiwan currency has fallen 2.4 percent in the past three months. It was up 0.3 percent this week against the US dollar. The currency remains in danger as investors tend to pull their funds from emerging markets at the present time. … “Taiwan Dollar Attempts to Stabilize”
Mexico’s Credit Rating Makes Peso Attractive
The Mexican peso maintained its bullish momentum today after Moody’s Investor Service upgraded the nation’s credit rating last week, increasing the attractiveness of Mexico’s assets to investors. Moody’s boosted Mexico’s sovereign rating from Baa1 to A3 with stable outlook on February 5. The rating agency commented on the decision: The decision to upgrade Mexico’s sovereign ratings was driven by the structural reforms approved last year, which Moody’s expects will … “Mexico’s Credit Rating Makes Peso Attractive”
Pound Jumps as Dale Talks About Interest Rate Hike in 2015
The Great Britain pound jumped today as Bank of England Chief Economist Spencer Dale talked about the possibility of an interest rate hike next year, saying that it is a likely event. Dale mentioned the forecast of interest rates “remaining on hold until about the Spring of next year and then rising to around 2 percent by the end of 2016” and said: Based on what we know now, that profile for interest rates looks … “Pound Jumps as Dale Talks About Interest Rate Hike in 2015”
Taking Stock in February
So I wanted to try and take some stock of what’s been going on so far this year. Some of you will know my “fundamental” view for this year has been that as the Federal Reserve changes its policy stance, so the US Equity Markets will adjust and vulnerable emerging market economies that depend on … “Taking Stock in February”
Indonesian Rupiah Jumps as Current-Account Shortfall Narrows
Narrowing Indonesia’s current-account deficit and stable monetary policy of the central bank allowed the rupiah to gain today, demonstrating the biggest jump in a month and exceeding the 12,000 per dollar level for the first time this year. The Bank Indonesia maintained its main interest rate at 7.5 percent and kept other rates unchanged too at today’s meeting. The central bank explained: The policy is consistent with the tight monetary policy stance currently adopted … “Indonesian Rupiah Jumps as Current-Account Shortfall Narrows”
Disappointing News Sends US Dollar Lower
Greenback is lower today, thanks to the latest economic news. Disappointments in the jobless claims report and in the latest retails sales data are weighing on the US dollar. There are also worries that the world’s most popular currency might be losing some of its appeal. US dollar is struggling today, thanks in large part to the disappointing economic data just released. According to the US Commerce Department, retail sales fell … “Disappointing News Sends US Dollar Lower”
Aussie’s Rally Stalls on Abysmal Employment Data
The Australian dollar sank today as employment data was much worse than optimistic analysts’ expectations, leading to speculations that the currency has exhausted its rally and is going to reverse the uptrend. Australian employment decreased by 3,700 jobs in January instead of rising by 15,300 as was predicted. It was the second consecutive month of employment contraction as the Australian labor market shed 23,000 jobs in December. The unemployment rate rose to 6.0 percent. … “Aussie’s Rally Stalls on Abysmal Employment Data”
EUR/USD: Trading the German Initial GDP February 2014
German Preliminary GDP is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. Thus, publication of the indicator could have a significant impact on the movement of EUR/USD. A reading which is better than the market forecast is bullish for the dollar. Here are all the … “EUR/USD: Trading the German Initial GDP February 2014”