The clash between the US and China over the freedom of the yuan’s movement continues. China indeed allowed its currency to appreciate but the US are obviously unpleased with pace of the appreciation and demand from China to let the yuan float more freely. Is the yuan really undervalued and will it appreciate in the future? The US officials claim that China’s currency is below the level, which can be considered the fair market value, … “Will Yuan Appreciate? Yes. Slowly.”
Author: admin_mm
Rand Drops as Central Bank & Importers Buy Dollars
The South African rand weakened today as the rand’s gains encouraged the central bank and the importers to take advantage of the stronger currency and buy the US dollars. The rand’s rally may hurt the country’s exports but the central bank has limited resources to curb the currency’s gains. Gill Marcus, the central bank’s governor, said that there is no “easy solution” and the measures to trim the advance of the rand can be “hugely costly”. The currency surged … “Rand Drops as Central Bank & Importers Buy Dollars”
New Zealand Dollar Slumps as GDP Grows Less Than Forecast
The New Zealand dollar slumped today after the government reported that the nation’s economy expanded less than expected, damping the prospect for the interest rates hikes. The New Zealand gross domestic product rose 0.2 percent in the third quarter of this year, following the 0.5 percent growth in the second quarter. The actual growth was much smaller than the forecast 0.8 percent increase. The slow economic growth reinforced the outlook that there … “New Zealand Dollar Slumps as GDP Grows Less Than Forecast”
Outlook for Interest Rates Hike Boost Norwegian Krone
The Norwegian krone jumped today to the highest level since April as the bets on the future interest hikes increased after Norway’s central bank expressed desire to increase the rates to the “more normal level”. The central bank left the benchmark deposit rate at the previous level of 2 percent. Yet the bank’s Executive Board hinted in its monetary policy statement that the interest rates increases are possible in the future: The consideration of guarding against the risk of future … “Outlook for Interest Rates Hike Boost Norwegian Krone”
Poor Retail Sales Undermine Confidence in Canadian Dollar
The poor economic data continues to come from Canada as the report today showed that the Canadian retail sales unexpectedly decreased, signaling that Canada’s economic growth is losing momentum and driving the Canadian dollar down. The retails sales dropped 0.1 percent in July, after there was no change in the month earlier. The actual reading was far worse than forecasts promised (0.5 percent growth). Today’s data, together … “Poor Retail Sales Undermine Confidence in Canadian Dollar”
Franc Reaches Record High Level Since March 2008 Against Dollar
The Swiss franc rose today to the highest level since March 2008 against the US dollar as the attractiveness of the currency as the safe haven increased after the Federal Reserve signaled it may restart buying of the securities. The Federal Open Market Committee stated yesterday: The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. These words may suggest about restarting of the quantitative easing policy, … “Franc Reaches Record High Level Since March 2008 Against Dollar”
UK Budget Deficit Widens, Pound Weakens
The Great Britain pound slipped today versus the euro to the lowest level since May after the report showed that Britain budget deficit widened in August more than expected, increasing the possibility of further budget spending cuts. The sterling rose against the US dollar. The UK public sector net borrowing was £15.9 billion in August, compared to the borrowing of £14.1 billion in a year ago. The current budget posted the deficit of £13.3 billion … “UK Budget Deficit Widens, Pound Weakens”
50:1 Leverage Limit – Industry is Growing Up
In less than a month, the new CFTC rule regarding foreign exchange will be in effect – a maximum leverage limit of 50:1 on majors and 20:1 on others. This might be frustrating for some traders, but in the long run, I believe this is a good step for industry. I believe that a leverage … “50:1 Leverage Limit – Industry is Growing Up”
Dollar Weakens as Fed Leaves Interest Rates Record Low
The US dollar extended its decline today against the euro and the Japanese yen after the Federal Reserve showed that it’s going to add further stimulus to support the failing US economy and at the same time refrained from the buying of the securities. The Fed refrained from increasing its balance sheet, just as was expected by the analysts. The decision on the interest rates was also in line with the expectations as they remained at their historically record low … “Dollar Weakens as Fed Leaves Interest Rates Record Low”
Canada’s Dollar Drops on Lower Consumer Prices
The Canadian dollar fell today after the consumer prices unexpectedly decreased, spurring the speculations that the central bank would stop the interest rates increases when its policy makers will meet next month. The consumer prices index fell 0.1 percent in August, compared with the growth by 0.5 percent in July. The analysts expected the index to remain the same. The core consumer prices index, which excludes the effect of changes in indirect taxes … “Canada’s Dollar Drops on Lower Consumer Prices”