The size of the ECB’s ABS program could be limited by the market itself. In order for the plan to succeed, the ECB would need to convince banks to securitize their loans, says Simon Smith of FxPRo. In the interview below, Smith also discuses the uncertainty regarding Scottish independence and its weight on the pound, the … “ECB needs a bigger ABS market to succeed; Weaker yen”
Month: September 2014
Pound Bounces, Remains Under Pressure
The Great Britain pound ticked up today but remained under pressure from the upcoming referendum about Scotland’s independence and the monetary policy outlook that is not particularly supportive for the currency. The Scots are going to vote in a referendum on September 18 if they want to remain a part of the United Kingdom or not. As of now, the ‘yes’ vote exceeds the ‘no’ vote by a small fraction according to the latest polls. Investors are nervous about … “Pound Bounces, Remains Under Pressure”
Canadian Dollar Bounces, Rises for Third Session vs. Yen
The Canadian dollar bounced today, trimming yesterday’s losses versus its US peer and the euro. The currency also extended its rally versus the Japanese yen for a third straight session. The loonie will likely have hard times keeping gains considering that fundamentals are not particularly supportive for the currency. Sluggish global economic growth and weak commodity prices are not helpful for the growth-related Canadian currency. Additionally, the Bank of Canada … “Canadian Dollar Bounces, Rises for Third Session vs. Yen”
EUR/USD enjoys higher volatility, improved technical behavior
The recent downfall in EUR/USD has a positive impact on other aspects of its trading: volatility has improved and so has its technical behavior. Stronger volatility was clearly seen in the big Draghi drag: a range of 230 pips in one day is certainly good news after a long time of tight range trading. The rise … “EUR/USD enjoys higher volatility, improved technical behavior”
GBP/USD could retest 2010 lows if Scotland votes to
If Scotland votes to exit the UK on September 18 the ramifications for GBP will be profound leaving the currency vulnerable to heightened volatility thanks to the ensuing uncertainty. Scotland only makes up about 10% of UK GDP, according to a study by the UK Parliament suggesting that it’s departure from the union would have a relatively … “GBP/USD could retest 2010 lows if Scotland votes to”
Indian Rupee Loses Value vs. Dollar
The Indian rupee declined today against the US dollar as speculations about potential monetary tightening from the Federal Reserve continues to support the greenback against other currencies, particularly riskier ones. While analysts had mixed expectations for potential performance of the dollar this week, the US currency is clearly acting in favor of bulls, at least for now. This means that riskier currencies of emerging markets remain under pressure. Some experts … “Indian Rupee Loses Value vs. Dollar”
Yuan Rises as PBoC Raises Fixing by Most Since 2010
The Chinese yuan gained today as the nation’s central bank raised its daily reference rate by the most in almost four years after yesterday’s positive trade data. The People’s Bank of China set the daily fixing 0.3 percent higher to 6.1520 per dollar, the biggest increase since November 2010 and the highest level in four weeks. The increase followed yesterday’s report that showed that the Chinese trade balance surplus widened. As exports … “Yuan Rises as PBoC Raises Fixing by Most Since 2010”
US Dollar Index Holds to Gains
US dollar index is holding on to some of its earlier gains, even though the greenback isn’t as high against its major counterparts as earlier. Most of the dollar’s strength is coming from other currencies’ weaknesses right now. The US dollar is trading mixed today, but the dollar index remains higher in general. Dollar index is getting a lot of help from the fact that the yen and the euro are both … “US Dollar Index Holds to Gains”
Euro Moves Lower as ECB Members Praise Rate Cuts
Euro is mostly lower again today, dropping against its United States and United Kingdom counterparts, thanks to recent comments from ECB members. With rate cuts being supported as a way to stimulate the economy, the expectation of more easing is weighing on the euro. There is a lot of support for a weaker euro right now, and that is leading to Forex traders going along with the programme. Ewald Nowotny and Sabine Lautenschlager, … “Euro Moves Lower as ECB Members Praise Rate Cuts”
USD/JPY reaches for the sky – 3 reasons
USD/JPY is trading at 106.30, breaking new ground after already reaching the highest levels since October 2008, at the height of the global financial crisis. Here are three drivers for the pair higher: USD storm: First and foremost, the US dollar is just storming the board, knocking down nearly every currency on its path. The markets … “USD/JPY reaches for the sky – 3 reasons”