US dollar is heading lower against its major counterparts today, but strength is expected for the rest of the year as diverging monetary policies favor the greenback. For now, though, the US dollar index is lower. Greenback is struggling on the Forex market today as its major counterparts come out ahead. Recent data has been a bit lackluster, and that is weighing on the US dollar. However, many analysts expect … “US Dollar Lower Today, But Strength Expected for Rest of Year”
Month: June 2014
Euro Mixed as Bulls and Bears Face Off
Euro is mixed in Forex trading today, and bulls and bears are facing off, looking at the 1.35 level against the US dollar as an important dividing line. It’s turning into an interesting over/under debate, as well as a debate between those who see the recent ECB decision as an injection of life into the eurozone, and those who think weakness will continue. Euro is higher against the US dollar and the Canadian dollar right now, … “Euro Mixed as Bulls and Bears Face Off”
Indian Rupee Suffers from High Crude Oil Prices
The Indian rupee fell today on speculations that rising prices for crude oil will lead to widening of the country’s trade balance deficit. Such prospects hurt the appeal of the nation’s assets. Prices for oil were rising due to the conflict in Iraq. Crude reached $114.69 per barrel on June 13, the highest price since September. India imports about 80 percent of crude oil it uses, meaning that the surge of prices should … “Indian Rupee Suffers from High Crude Oil Prices”
Tensions in Iraq Increase Demand for Yen as Safe Haven
The Japanese yen advanced today as concerns about escalating tensions and the threat of a war in Iraq increased demand for safer assets among investors. The yen, being one of such assets, profited as a result. Islamist fighters captured a Northern area of Iraq, including Mosul — the second biggest city of the country. The government military forces were unable to deal with the threat, and there are rumors that the United States will become involved. As it often … “Tensions in Iraq Increase Demand for Yen as Safe Haven”
EUR/USD: Trading The German ZEW Jun 2014
German ZEW Economic Sentiment is based on a monthly survey of institutional investors and analysts and their views of the German economy. A reading that 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 Tuesday at 9:00 GMT. Indicator Background … “EUR/USD: Trading The German ZEW Jun 2014”
EURGBP- Weakens, Threatens Further Declines
EURGBP- With EURGBP extending its weakness through the 0.8000 level during Friday trading session, further downside threats are likely. On the downside, support resides at the 0.7960 level where a breach will turn focus to the 0.7922 level. Further down, a break of that level will set the stage for a run at the 0.7900 … “EURGBP- Weakens, Threatens Further Declines”
Second Week of Gains for Sterling with Help of Employment & BoE
The Great Britain pound was the second-best performer on the Forex market this week after the New Zealand dollar. It was the second week of gains for the sterling. The UK currency was gaining on the euro for eight consecutive sessions — the longest stretch of gains since April 2010. The sterling started the week a bit soft but turned to the upside after the very positive employment report that suggested possibility of an interest rate hike in the near future. … “Second Week of Gains for Sterling with Help of Employment & BoE”
Rand Drops as S&P Lowers South Africa’s Credit Rating
The South African rand dropped today as Standard & Poor’s lowered the nation’s sovereign credit rating due to slow economic growth and other problems that make South African assets less attractive to investors. S&P cut South Africa’s long-term foreign currency sovereign credit rating to BBB- from BBB. The rating agency cited following reasons for such decision: The downgrade reflects our expectation of lackluster GDP growth in South … “Rand Drops as S&P Lowers South Africa’s Credit Rating”
Chilean Peso Drops due to Probability of Interest Rate Cuts
The Chilean peso dropped today after the nation’s central bank left monetary policy unchanged but hinted that interest rate cuts are probable due to the slack in economic growth. The Central Bank of Chile maintained its main interest rate at 4 percent at yesterday’s policy meeting. The central bank said in the statement about the domestic economic developments: Local economic indicators confirm the low dynamism of output and demand. The drop in investment … “Chilean Peso Drops due to Probability of Interest Rate Cuts”
Yen Weakens as Kuroda Worried About ECB Actions
The Japanese yen dropped today even as the Bank of Japan refrained from expanding its already significant stimulus program at today’s policy meeting. Japanese policy makers were concerned that actions of the European Central Bank will make the yen appreciate against the euro, and this would not be welcomed by the BoJ officials who were striving to weaken the Japanese currency. As was expected, the Japanese central bank left its interest … “Yen Weakens as Kuroda Worried About ECB Actions”