The South African rand strengthened today against the US dollar on the speculation that the carry trade would persist, increasing the capital inflows in South Africa and bolstering the currency. Pravin Gordhan, South Africa’s Minister of Finance, said that the decision of the US Federal Reserve to keep the interest rates near zero would support the rand. The so-called carry trade, when the speculators borrow in the developed countries with the low interest rates to invest in the higher-yielding … “Carry Trade Makes South Africa’s Rand Stronger”
Author: admin_mm
Yuan Appreciates Ahead of G-20 Meeting
The Chinese yuan gained today on the speculation that the Chinese government would allow the currency to appreciate ahead of the Group of Twenty meeting. The Peopleâs Bank of China increased the yuanâs reference rate by 0.17 percent to 6.6580 versus the US dollar today, the biggest gain in more than three weeks. This move allowed to appreciate not only the yuan, but also other riskier currencies. Such action may be performed because of the political … “Yuan Appreciates Ahead of G-20 Meeting”
British Pound Gains vs. Euro, Drops vs. Dollar & Yen
The Great Britain pound gained versus the euro on the speculation that Ireland would fail to find means for decreasing its budget shortfall even though it discusses with the European Union the possible measures to do so. The pound dropped against the US dollar and the Japanese yen. Ireland attempts to negotiate with the EU the way to avoid the bailout, like the one provided for Greece, while the investors refrain from buying the Irish bonds. Angela … “British Pound Gains vs. Euro, Drops vs. Dollar & Yen”
Loonie Falls vs. Greenback, Gains vs. Euro
The Canadian dollar slipped against its US counterpart as the declining stocks and commodities caused the speculation that the global economic recovery is losing its momentum. The currency strengthened against the euro. The Standard & Poorâs 500 Index and the MSCI World Index fell 0.3 percent each today. Futures for crude oil, the main Canadaâs export, dropped 0.4 percent to $86.53 per barrel, following the 1 percent decline earlier. The renewed … “Loonie Falls vs. Greenback, Gains vs. Euro”
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[Video] Unlucky Irish, Aussie Strength, Technical Levels and more
In the weekly interview on Forex TV, I spoke with Julie Sinha about weakness of EUR/USD, despite the dollar printing, the strength of the Aussie that might get another boost this week, technical levels of selected pairs, the main events this week and more. Enjoy! Last week was very intense, with QE2, many rate decisions … “[Video] Unlucky Irish, Aussie Strength, Technical Levels and more”
South Korean Won Hurt by Volatility Curbs
The South Korean won fell on the concerns that the government is going to perform actions, which would curb the currency’s volatility and drive away the speculators. South Korea’s government announced the cap on currency derivatives in June, demanding the foreign and domestic banks to cut their holdings to the specified amount of equity capital by October 2012. It looks like the government desires to prevent the speculative funds from coming into the country, which is weakening … “South Korean Won Hurt by Volatility Curbs”
Ireland’s Budget Deficit Weakens Euro
The euro dropped today as the speculation that Ireland wouldn’t be able to curb its budget deficit renewed the concerns about the debt crisis in the euro-region. Ireland announced last week the plan to cut spending by as much as â¬6 billion ($8.4 billion) in 2011. Olli Rehn, the European Commissioner for Economic and Financial Affairs, arrives today in Dublin to discuss the spending cuts and the tax increases. The spread, between Irish bonds and benchmark German bunds, maturing … “Ireland’s Budget Deficit Weakens Euro”
Eur/Usd: Top in place?!
Eur/usd reached new highs in this past week, but was very bearish on Friday, which actually could lead to some deeper decline in the coming week. In this free Elliott wave video, we will present you the main technical reasons that could drive the Eur/usd lower, maybe even towards 1.3800 region, while the 1.4280 top … “Eur/Usd: Top in place?!”
US Debased Its Currency This Week, Others May Follow
The main driver for the moves of the US dollar, as well as most other currencies, this week was the quantitative easing, which weakened already weak greenback. The favorable US nonfarm payrolls allowed the dollar to return some strength yesterday, but it posted weekly losses against most major currencies. The quantitative easing may bolster the US economy, but it weakens the US currency. The euro profited from the easing, further boosted … “US Debased Its Currency This Week, Others May Follow”
Demand for Safety Wanes, Yen Weakens
The Japanese yen fell against the US dollar and weakened versus the Great Britain pound as the nonfarm payrolls in the US grew and the Asian stocks rallied, decreasing demand for the safer currencies. The US nonfarm payrolls posted the increase by 151,000 in October, following the decline by 41,000 in September. The MSCI Asia Pacific Index of regional shares gained as much as 1.2 percent. The VIX Index, the measure of market volatility which is often called the Wall Streetâs “fear … “Demand for Safety Wanes, Yen Weakens”