The Canadian dollar rose today after crude oil, the main Canadian export, climbed to the highest level in 26 months and as the optimism for the global economic recovery boosted the currencies linked to the growth. January delivery for crude oil gained as much as 1.3 percent to $89.42 per barrel in New York. One of the reasons for gains of crude was the decline of the US jobless claims, which caused speculation that the US economy improves and the demand for oil would … “Canadian Dollar Rises with Crude Oil Prices”
Author: admin_mm
US Jobless Claims Fall – Was the NFP Too Weak?
American weekly unemployment claims dropped to 421K, pushing down the 4 week moving average once again. It already reached 407K two weeks ago and rose last week to 438K (revised from 436K). This raises some questions about the accuracy of the weak Non-Farm Payrolls that we saw this Friday – they disappointed with a job … “US Jobless Claims Fall – Was the NFP Too Weak?”
Yuan Appreciates as China’s Trade Surplus Grows
The Chinese yuan gained today on the speculation that the growing trade surplus would prompt the Chinese government to allow faster appreciation of the currency. China’s trade surplus exceeded $21 billion in November. The excess of the exports over imports rose to $114 billion in the second half of this year, more than double compared to $55 billion in the first half. The yuan may appreciate 6.2 percent by the end of the next year as China’s government attempts to slow … “Yuan Appreciates as China’s Trade Surplus Grows”
Aussie Goes Up on Good Employment Data
The Australian dollar gained today after the government report showed that the Australian employers added twice as many jobs as was predicted by the experts. The number of the employed persons in Australia grew by 54,600 from October to November, following the increase by 36,900 in October from September. The analysts forecast the growth by 21,300. The unemployment rate remained unchanged at 5.2 percent as was predicted. AUD/USD rose from 0.9794 to 0.9841 as of 9:53 GMT today after it … “Aussie Goes Up on Good Employment Data”
Allied Irish Banks Scavenging Before Haircut?
Allied Irish Bank (nyse:aib) is running for the loot – AIB will pay $53 million in bonuses to senior bankers. What is the bonus for? Not announcing a haircut yet? While Anglo Irish and the Bank of Ireland already announced restructuring / burden sharing / cutting the hair of bondholders, Allied Irish Banks haven’t done … “Allied Irish Banks Scavenging Before Haircut?”
Irish Sovereign Downgraded by Fitch
Credit rating agency Fitch downgraded Ireland’s score to BBB+. Needless to say, this came as no surprise. Credit rating agencies such as S&P, Moody’s and Fitch are always late. The real credit rating is better reflected in CDS – Credit Default Swaps. It’s no news that the Irish sovereign is having trouble, due to its … “Irish Sovereign Downgraded by Fitch”
Euro Credit – The Way to Resolve Debt Crisis
Deutsche Bank offers the ECB an idea for resolving the European debt crisis by giving incentives to commercial lenders – incentives to get them buying bonds of debt-laden countries. After the politicians’ handling of the crisis hasn’t been optimal, hopes still lay at the door of the central bank, which now focuses on buying bonds … “Euro Credit – The Way to Resolve Debt Crisis”
Portugal Focus of ECB
The European Central Bank now focuses on buying Portuguese bonds, in an effort to prevent the fall of the next domino in the European debt crisis. After the Irish parliament approved the budget cuts – a pre-condition for the bailout package, the ECB leaves Irish debt crisis behind and focuses on another periphery country – … “Portugal Focus of ECB”
Bank of Ireland Haircut
Following the haircut forced upon bondholders of the Anglo-Irish bank, also the Bank of Ireland is announcing “haircuts” or burden sharing if you wish. Tracy Alloway reports about this development, that isn’t too good for the Euro, even if it’s a smoother razor is used. Read it here. This is not the first haircut for an Irish bank, and unfortunately not … “Bank of Ireland Haircut”
US Dollar Strengthens on Tax Reduction & Global Uncertainty
The US dollar gained against the Japanese yen today on the speculation that the extended tax cuts would help the economy of the US. The currency also posted gains versus the euro, before retreating, as the concern for Europe’s debt troubles increased the appeal of the greenback as the safe currency. The tax rates, set in 2001 and 2003, were scheduled to increase on December 31st. Now the US President Barack Obama extended the tax reduction for two years. The Dollar Index, … “US Dollar Strengthens on Tax Reduction & Global Uncertainty”