The euro posted the unexpectedly strong gains today despite speculations about possible default of Greece and spreading of the sovereign-debt crisis continue to plague markets. The reason for such surprising performance was anticipation of another interest rates hike by the European Central Bank. ECB governing council member Nout Wellink said that the recent increase of the interest rates was an “extremely important” signal for investors that shows higher inflation shouldn’t be counted … “Euro Gains Even Amid Debt Crisis”
Author: admin_mm
EURUSD: Breaks Below Rising Channel, Vulnerable
EURUSD: The pair has put its broader uptrend on hold after declining through its rising channel in place for about three months. This technical development has opened up risk to the downside with eyes on the 1.4061 level, its April 01’2011 low. Guest post by www.fxtechstrategy.com A trade below that level will call for a … “EURUSD: Breaks Below Rising Channel, Vulnerable”
USD Reverses Trend as Market Sentiment Shifts
This week has started with market sentiment turning to risk aversion mood and such sentiment may remain for the rest of the week. This can be both positive and negative for the US currency. We were seeing some time optimistic mood on markets for some time as the global economy was recovering from the recession, commodity prices going higher and overall picture of the global economy looked nice and fine. And now all of the sudden … “USD Reverses Trend as Market Sentiment Shifts”
Australian Currency Looks Down When Demand for Safety Prevails
The same problems of the US and Europe’s economies that spurred demand for safety caused the Australian dollar to drop today for the second day. Currently demand for safer assets prevails on markets, reducing appeal of currencies linked to growth, including the Australian dollar. Otto Fricke, member of the German parliament, said yesterday that Greece may face default by the end of the summer. The MSCI Asia Pacific Index of shares contracted 1.21 percent, falling for the third day. … “Australian Currency Looks Down When Demand for Safety Prevails”
Yen Climbs while US Credit Rating & Europe’s Economy in Peril
The Japanese yen rose today after Standard & Poor’s said yesterday that the US top credit rating isn’t certain and as concerns about the debt of the European countries drove investors to the safety of the Japanese currency. The Greek bond yields jumped to the highest level since the euro was introduced, while investors’ bets show a greater than 60 percent chance of default within five years. S&P said yesterday that it … “Yen Climbs while US Credit Rating & Europe’s Economy in Peril”
Franc Gains vs. Euro, Drops vs. Yen & Dollar on Safety Demand
Worries about the European debt crisis and the prospect of US credit rating’s downgrade increased demand for safe currencies today. As a result, the Swiss franc advanced versus the euro, but demand for safety benefited more for the US dollar and the Japanese yen. Finlandâs Justice Ministry reported that support of the True Finns reached 19 percent. The party’s leader Timo Soini says that Finland’s taxpayers shouldnât have paid for aid to Greece or Ireland. … “Franc Gains vs. Euro, Drops vs. Yen & Dollar on Safety Demand”
US Dollar Gains as S&P Puts US Outlook to Negative
The US dollar gained today after Standard & Poorâs reduced the US credit rating to negative, spurring demand for the currency as a safe haven. The yen still looks more attractive as a safe currency and outperformed the greenback. S&P confirmed the US credit rating of AAA/A-1+, but decreased the outlook for negative. The reasons for the decision were the high debt of the country and the absence of clear way to reduce this debt. The report said: Because the U.S. has, relative … “US Dollar Gains as S&P Puts US Outlook to Negative”
AUD/USD: Trading the PPI Release
Australia’s quarterly release of its Producer Price Index is due on April 21st, at 1:30 GMT. The frequency of this release in a world of rising inflation makes it of high importance, no matter the outcome. Here are the details and 5 scenarios for the outcome and AUD/USD reaction. Indicator Background Contrary to most countries, … “AUD/USD: Trading the PPI Release”
Europe’s Troubles & China’s Tightening Sap Strength from Ringgit
The Malaysian ringgit weakened today as concerns about Europe’s debt crisis and China’s tightening measures draw traders away from riskier currencies. China’s central bank announced that it’s increasing reserve requirements for lenders from April 21. Finland may vote against the bailout for Portugal after the elections on the weekend. The Bloomberg-JPMorgan Asia Dollar Index fell 0.1 percent. The Malaysian currency rose earlier on the speculation that the nation’s central … “Europe’s Troubles & China’s Tightening Sap Strength from Ringgit”
Slower Inflation Growth Moves New Zealand Dollar Down
The New Zealand posted today the biggest decline in more than four weeks after the report showed that the nation’s inflation slowed, signaling that the economic recovery loses momentum. The New Zealand consumer prices index rose 0.8 percent in the first quarter of 2011, compared to the 2.3 percent growth in the fourth quarter of 2010. Analysts thought that the CPI would increase by 1 percent. Finance Minister Bill English said that … “Slower Inflation Growth Moves New Zealand Dollar Down”