The Chinese currency appreciated today against the dollar as China relaxed the yuan’s peg to the U.S. currency, the move which should stop blames for unfair trading advantage, brought by undervalued currency, from the U.S. President and other G-20 leaders. According to the opinion of the Peopleâs Bank of China, the stronger yuan should help to reduce the inflation and turn the investment from the manufacturing to the service industries. The economists say that the appreciation may be slow but sure. … “Yuan Gains as Its Dollar Peg Expected to End”
Author: admin_mm
GBP/JPY Outlook – June 21-25
The Chinese government finally made its move and promised to let the Chinese yuan trade more freely – appreciate against the dollar. This announcement on the weekend will have a positive impact on the Japanese yen across the board. The most interesting cross is GBP/JPY. Here’s an update on the situation and on the technical … “GBP/JPY Outlook – June 21-25”
Bad Week for Dollar as U.S. Economy Showed Signs of Weakness
This week was rather frustrating for the U.S. currency, which dropped versus most other major currencies, as the confidence about the U.S. economic growth was damaged by the signs of the economic recovery’s weakness. The euro rebounded after the previous losses against the dollar steadily, even though it experienced slight decline on Wednesday and Friday. The moves against the Great Britain pound were significantly more volatile, yet the week ended in losses for the greenback … “Bad Week for Dollar as U.S. Economy Showed Signs of Weakness”
Canadian Dollar Goes Up as Oil Prices Rise
The risk appetite improved, boosting the equities, today and the Canadian dollar benefited from this, though the rising oil prices perhaps contributed to the loonie’s strength even more. The Dow Jones Industrial Average rose 0.2 percent through the day and 2.4 percent over the week. Crude oil futures advanced 0.9 percent to $77.45 per barrel on the New York Mercantile Exchange. The Canadian currency, which is often called the loonie because … “Canadian Dollar Goes Up as Oil Prices Rise”
Britain’s Pound Reached Highest Level Since May 13
The Great Britain pound reached today its highest level against the U.S. dollar since May 13th, before falling, as the number of mortgage approvals was higher than forecasted. The Bank of England reported that 51,000 new mortgages were approved for home purchases during the previous month, compared with median estimate of 49,000. Some economists say, though, that the sterling’s rebound was short-lived as the budget cuts would damp … “Britain’s Pound Reached Highest Level Since May 13”
Demand for Safety Increases Appeal of Yen
The Japanese yen strengthened today amid the concerns that the austerity measures, planned by the European countries in order to battle the sovereign-debt crisis, might derail the global economic recovery. The troubles in Europe continue influence the global economy, damping the willingness to risk among traders and increasing the demand for the safety. Moreover, the yesterday’s unfavorable data from the U.S. decreased the appeal of the dollar as the safe currency, making the yen the primary currency in the role of the safe haven. USD/JPY fell … “Demand for Safety Increases Appeal of Yen”
Dollarâs Strength Subdued by Bad Macroeconomic Data
The U.S. dollar went down today after the set of the macroeconomic reports was released, which showed some rather unwelcome data, signaling that the U.S. economy expand at slower pace. The unemployment claims unexpectedly surged to 472,000 in the previous week from 460,000 a week earlier, even though the forecasts promised a decrease of the jobless claims. Philadelphia Fed index decreased to 8.0 this month from 21.4 in May, suggesting that the U.S. … “Dollarâs Strength Subdued by Bad Macroeconomic Data”
U.K. Retail Sales Beat Forecast, Pound Rises
The Great Britain pound strengthened today against the U.S. dollar and some other most-traded currencies after the retail sales rose more than expected, suggesting that Britain’s economic recovery is strengthening. The total retail sales volume increased by 0.6 percent between April and May, while the experts expected only the 0.1 percent growth. The Britain’s policy makers pledged to perform the spending cuts in the emergency budget on June 22nd. Mervyn … “U.K. Retail Sales Beat Forecast, Pound Rises”
Malaysian Ringgit Falls on European Debt Concerns
The Malaysian ringgit weakened today as the threat of the spreading sovereign-debt crisis in Europe drove the investors to the safety of the U.S. dollar away from the Asian currencies. The Asia Dollar Index slid 0.2 percent and the MSCI Asia Pacific Index slipped 0.4 percent. The concerns about the European crisis strengthened after the European Commission said that the European nations urgently need to cut their budget deficits and the countries with the big debts may be … “Malaysian Ringgit Falls on European Debt Concerns”
Swiss Franc Gains as SNB Thinks Risk of Deflation Gone
The Swiss franc gained today, rising for a fourth day against the U.S. dollar, as the central bank think that the threat of the deflation has gone. The Swiss National Bank previously was attempting to rein the currency’s appreciation as the strong currency threatened to cause deflation. The central bank’s officials said that they are ready to intervene again if the gains of franc would pose threat to the nation’s economy. USD/CHF traded near 1.1182 as of 8:35 … “Swiss Franc Gains as SNB Thinks Risk of Deflation Gone”