The Canadian dollar soared today after the report showed that the Canadian employers added more jobs than the market participants expected and as the unemployment rate in the US dropped, suggesting that the economic recovery in the North American nations are gaining momentum. The Canadian employment grew by 22,000, compared to the forecast growth by 19,100. The unemployment rate remained steady at 7.6 percent, while it was expected to increase slightly. The US unemployment rate slid … “US & Canada Employment Reports Bring Loonie Higher”
Author: admin_mm
Optimistic Outlook for UK Economy Helps Sterling Rise
The Great Britain pound rose today as the forecast that Britain’s economy would prove stronger than the economy of the European Union amid the fiscal crisis outweighed the negative impact of the poor US non-farm payrolls. The economists predicted that the UK economy would expand 2 percent in 2011, while the Eurozone economy would grow 1.5 percent. The experts forecast that the Bank of England would keep its bond-purchase plan and the interest rates … “Optimistic Outlook for UK Economy Helps Sterling Rise”
Estonia Introduces Euro as National Currency Despite Its Weakness
The euro extended its losses today amid the threat of the sovereign-debt crisis, which may slow the economic growth in the Euro-region and further damp the demand for the shared European currency. Jean- Claude Trichet, the President of the European Central Bank, criticized the European governments in his speech today, saying that “monetary policy responsibility can not substitute for government irresponsibility” and the ECB policy makers “told all governments that they had to correct drastically … “Estonia Introduces Euro as National Currency Despite Its Weakness”
Zloty Drops After Rally on Anticipation of Interest Rates Hike
The Polish zloty dropped today for the third day after it surged at the beginning of this week, causing the speculation that the currency is overbought. The currency jumped after the Finance Ministry said that the annual inflation rate accelerated to 3.1 percent last month. Marek Belka, the President of the National Bank of Poland, stated that the policy makers would take actions to curb inflation, suggesting the potential interest rates increase. USD/PLN rose … “Zloty Drops After Rally on Anticipation of Interest Rates Hike”
Euro-zone GDP Lower in Q3
The Gross Domestic Product in the Euro-zone grew by only 0.3% in the third quarter of 2010. The final release of GDP wasn’t expected to show a change from the previous read of a 0.4% growth rate, so this is a disappointment. The final release usually confirms earlier releases. In other European news, the unemployment … “Euro-zone GDP Lower in Q3”
Spanish Bond Yields Moving Higher
The yields on ten year Spanish government bonds are on the rise and are currently at 5.53%. This came after a few good days of lowers yields, that were pushed by the Chinese pledge to buy Spanish bonds and to support the country. But now, as the fears grow in Europe, the yields are moving up. Spain … “Spanish Bond Yields Moving Higher”
Slump of Commodities Weakens Australian Dollar
The rally of the US dollar weakened its Australian counterpart as the drop of commodities, which was cause by the rally of the greenback, damped the appeal of the commodity currencies. February delivery for gold futures extended its decline for the third consecutive day yesterday. February delivery for crude oil fell 2.1 percent to $88.38 per barrel in New York. The London Metal Exchange Index of six metals, including copper and aluminum, slid for the second day, losing 0.2 … “Slump of Commodities Weakens Australian Dollar”
Dollar Gains on Optimism for US Jobs Market
The US dollar rallied as the improving labor market in the US increased the attractiveness of the greenback, while the equities and the commodities declined. The report about the employment, released on January 5th, caused the surge of optimism for the US jobs market. Yesterday’s report about the unemployment claims subdued hopes as it was not as good as expected, showing the increase from 391,000 to 409,000, instead of expected 400,000. Still, optimism hasn’t gone away and the experts predict today’s non-farmpay-rolls … “Dollar Gains on Optimism for US Jobs Market”
European Bank Defaults Draft
The European Commission has released the first paper discussing the methods for defaults of European banks. It may be called burden sharing, restructuring, or just not paying the debt. The paper is a draft, which is open to contributions until March 3rd, and aims for official approval by the summer. More details brought Tracy Alloway. … “European Bank Defaults Draft”
Rand Drops for Fourth Day on Weaker Commodities & Strong Dollar
The South African rand extended its decline versus the US dollar today as the favorable US economic reports strengthened the dollar, while the slump of commodities weakened the rand. The good economic data from the US this week, including reports about the services industries and the employment, allowed the US currency to strengthen. At the same time, commodities were declining, causing the riskier currencies, including the rand, to weaken. The economists say that it’s just temporary … “Rand Drops for Fourth Day on Weaker Commodities & Strong Dollar”