The Malaysian ringgit rose against the US dollar today, following other Asian currencies in gains. There were speculations that the Federal Reserve will slow the pace of asset-purchases reduction, and such talks helped currencies of emerging markets to gain against the greenback. Forex market participants wait for today’s release of US non-farm payrolls, which are considered to be a good gauge of economic performance. Analysts predict that the report will show … “Ringgit Ticks Up as Traders Wait for NFP”
Month: March 2014
Canadian Dollar Appreciates with Support of Positive Fundamentals
The Canadian dollar advanced today with help of domestic economic reports that suggested that Canada’s growth gains momentum, adding to signs of improvement in the global economy. As most other currencies, the loonie lost to the euro, which was the top performer on the Forex market today. Building permits surged 8.5 percent in January, following the 4.8 percent decrease in December. The increase vastly outpaced the predicted gain of 1.9 percent. The Richard Ivey School … “Canadian Dollar Appreciates with Support of Positive Fundamentals”
GBP Gains on Growth & BoE Outlook, Falls vs. EUR
The Great Britain pound rose today as positive economic data supported the outlook for stable economic growth, while the central bank kept monetary policy unchanged. The sterling weakened against the euro, which was supported by the monetary policy statement of the European Central Bank. The Bank of England announced today: The Bank of Englandâs Monetary Policy Committee today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets … “GBP Gains on Growth & BoE Outlook, Falls vs. EUR”
Greenback Looks for Direction
Greenback is mixed today, looking for direction as signals indicate that dollar strength could be a fixture in coming months even while the dollar index dips due to the euro’s huge surge today. It’s an interesting way forward, and some think that the euro is overbought at this point. For now, the US dollar is mixed against its major counterparts. The big move today, though, is a surge by EUR/USD. The euro … “Greenback Looks for Direction”
ECB Maintains Rate; Euro Moves Higher
Contrary to some bets that the ECB would need to cut interest rates to help stimulate the eurozone economy, the central bank is holding steady. As a result, the euro is receiving a small boost in the markets, heading a little bit higher Thanks to recent economic data, especially inflation data, there are concerns about what could be next for the eurozone. The European Central Bank has been expected to take action, and there … “ECB Maintains Rate; Euro Moves Higher”
Yen Plunges on Pension Fund Speculations
The Japanese yen dropped today as the advisory panel said that Japanâs Government Pension Investment Fund no longer needs to stick to a “domestic-bond-centric portfolio” as the country moves out of deflation. Prime Minister Shinzo Abe’s government was hoping that the GPIF will buy more domestic stocks bonds to generate higher returns for Japan’s population. But now it looks like capital may move out from Japan to foreign … “Yen Plunges on Pension Fund Speculations”
ECB Preview: Mini QE and no negative rates? 4 scenarios
The ECB convenes to to make its monthly rate decision as the level of inflation remains low, but is it low enough for using the “nuclear option” of setting a negative deposit rate? Probably not. Nevertheless, the ECB could still take action in the face of strong exchange rate. In addition, there is a “wild … “ECB Preview: Mini QE and no negative rates? 4 scenarios”
Australian Economy Continues Demonstrate Improvement, AUD Higher
Macroeconomic indicators continue to suggest that Australia’s economy experiences stable growth. This led to gains of the Australian dollar. Hopes for improvement of the global economy helped the currency too. Retail sales climbed 1.2 percent in January from December, exceeding the anticipated increase of 0.7 percent. The trade balance surplus increased from A$0.59 billion in December to A$1.43 billion in January instead of falling to A$0.11 billion as was predicted. Today’s data followed … “Australian Economy Continues Demonstrate Improvement, AUD Higher”
Rupee Strong as Indian Current-Account Deficit Narrows
The Indian rupee was strong today as the nation’s current account deficit fell to the lowest level in four years with the help of measures that limited gold imports. The Reserve Bank of India reported that the current account gap narrowed to $4.2 billion in October-December quarter from $5.2 billion in the previous three months. The Indian government has increased taxes on gold imports three times last year. India is the biggest consumer … “Rupee Strong as Indian Current-Account Deficit Narrows”
Pound Withstands Unfavorable Housing Data
The Great Britain pound was strong today in spite of economic data that was mixed at best. The housing data was very poor, while the service sector expanded with decent pace even though the growth was a little bit slower. The Shop Price Index of British Retail Consortium fell 1.4 percent in February, year-on-year, declining for the tenth straight month. It was the longest deflation period on the record. At the same time, … “Pound Withstands Unfavorable Housing Data”