The Australian dollar reached today the highest level in two years against its US counterpart as the improving market sentiment and the outlook for the increasing stimulus from the US Federal Reserve boosted the appeal of the riskier currencies. The MSCI Asia Pacific Index of shares climbed as much as 1.2 percent, the biggest gain in two weeks. The wagers indicate 66 percent chance of the interest rates increase by the central bank next week. The Australian dollar was second … “Australian Dollar Near Two-Year High”
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Euro Goes Down on Concern for European Banks’ Health
The euro slipped today against the US dollar and the Japanese yen as the concern that the European banks would require to raise more funds damped demand to the European assets. The report this week shall tell how much it’ll be for Ireland to bailout Anglo Irish Bank Corp. Brian Lenihan, Ireland’s Minister for Finance, promised that the costs would be “manageable”. The government expects the bailout to cost about â¬22 billion, but … “Euro Goes Down on Concern for European Banks’ Health”
Second Week of Gains for Euro, Analysts Continue Forecast Decline
The euro rallied last week despite the grim forecasts. This week the currency extended its rally, most notably against the dollar, against which it rose to the highest level since April. The analysts remained largely unconvinced, though, and continue predict the weakening of the euro. It’s true that main reason for the euro’s strength against other currencies was the weakness of those currencies. The US dollar weakened after the Federal Reserve signaled … “Second Week of Gains for Euro, Analysts Continue Forecast Decline”
Brighter Outlook for Economic Recovery Makes Euro Stronger
The euro rallied today against the US dollar and the Japanese yen, erasing its losses, after the global equities advanced and the good macroeconomic data from Europe suggested that the economic recovery continues. The Standard & Poorâs 500 Index rose 2 percent, the biggest advance in three weeks. The MSCI Emerging Markets Index went up 0.8 percent, heading for the highest closing level since July 2008. The MSCI Asia Pacific … “Brighter Outlook for Economic Recovery Makes Euro Stronger”
Good Economic Reports from US & Europe Push Loonie Higher
The Canadian dollar went up today against the US dollar, paring previous losses, as the German business sentiment unexpectedly increased and the number of the US durable good orders grew, increasing the attractiveness of the growth-related currencies. The currency later weakened somewhat but remained above the opening level. The loonie fell versus the euro. The new orders for the US durable goods, excluding transportation, grew 2.0 percent in August, following the 2.8 percent decline in July. … “Good Economic Reports from US & Europe Push Loonie Higher”
CFTC Assuming Babysitter Role
Regulating US forex brokers is one thing. But preventing traders from opening offshore accounts is already another thing. This is already significant “baby-sitting” and over “protection” opinion. Some brokers are already bringing clients back home. Will US traders be blocked from opening accounts with offshore brokers? The talk about the new CFTC rules created a … “CFTC Assuming Babysitter Role”
Capital Inflows Bolster Indian Rupee
The Indian rupee, together with other Asian currencies, rose today on the speculation that the increasing capital inflows from the global funds in the region’s economy would allow the Asian countries to profit from Asia’s fast economic growth. The rupee also gained after the Indian government allowed the foreign investors to double the holdings of the government bonds to $10 billion and increased the cap on investment in the corporate debt by the third to $20 billion. This measure may … “Capital Inflows Bolster Indian Rupee”
Yen Slumps on Talks About Another Intervention
The Japanese yen is rising after it previously declined today on the speculation that Japan intervened to trim the currency’s gains in order to protect the nation’s exporters. Japan perhaps sold the yen today after it intervened last week for the first time in six years. Yoshihiko Noda, the Minister of Finance, said that the government may perform the “bold” actions to limit the excessive appreciation. The yen also fell on the rumors that the Bank of Japan … “Yen Slumps on Talks About Another Intervention”
Euro Declines as Reports Signal About Slower Growth
The euro fell today as the reports signaled that the European economic recovery may be slowing, diminishing the attractiveness of the shared 16-nation currency to the investors. The French Services PMI was at 58.8 this month, down from 60.4 in August and below the market expectations of 60.1. The German Services PMI declined from 57.2 in August to 54.6 in September. The forecasts promised it to remain at the same level. German Manufacturing PMI declined to 55.3 in September from … “Euro Declines as Reports Signal About Slower Growth”
Poor Economic Reports Signal About Slower Recovery, CAD Down
The Canadian dollar fell today as the investors’ sentiment shifted to the risk aversion after the reports from the US, Europe and Canada itself signaled that the global recovery is faltering, decreasing the appeal of the growth-related currencies. The currency rose against the euro. The claims for the unemployment benefits unexpectedly rose last week in the US from 453,000 to 465,000. The manufacturing and services industries in the European countries, including Germany and France, declined noticeably more than predicted. The reports … “Poor Economic Reports Signal About Slower Recovery, CAD Down”