The euro experienced high volatility today against the U.S. dollar and the Japanese yen on the concerns that the austerity measures will be taken by the EU leaders to rein the debt crisis, hurting the economy. The speculation emerged that Germany plans to turn its temporal ban on short naked selling into the permanent one for some securities of EU countries. These rumors sent the markets back into the turmoil from which they just have … “Euro Experiences Volatile Moves on Talks About Austerity Measures”
Author: admin_mm
Mexican Peso Strengthens as China Brings Relief to Markets
The Mexican peso rose today as the announcement of the Chinese government that it doesn’t plan to stop investing in Europe brought the respite to the global markets. The forecasts for the Mexico’s economic growth range from 4.3 percent (the pace in the first quarter of this year) to 4.5 percent. Despite these optimistic forecasts for the economy’s growth, the Mexican currency considered vulnerable to the risk aversion sentiment in case the global markets experience yet another turmoil. USD/MXN traded … “Mexican Peso Strengthens as China Brings Relief to Markets”
Brazilian Real Declines After Appreciation
The Brazilian real strengthened, before retreating again, today as China stated that the report about its decision to abandon the European investments was “groundless”, easing the concerns on the global markets. The volatility of the real is explained only by the external influence, as the domestic environment remained relatively stable. The waning concerns about the European troubles helped the currencies of the emerging markets. EUR/BRL traded at about 2.2476 as of 08:30 GMT today after opening at 2.2422. USD/BRL … “Brazilian Real Declines After Appreciation”
Concerns Go Away, Euro Goes Up
The euro advanced today against the U.S. dollar, erasing the yesterday’s decline, and rose versus the Great Britain pound and the Japanese yen after China confirmed its intentions to invest in Europe, damping the risk aversion sentiment and aiding the currencies tied to growth. Chinaâs State Administration of Foreign Exchange said on its website today: “Europe has been, and will be, one of the major markets for investing Chinaâs exchange reserves”. This announcement eased … “Concerns Go Away, Euro Goes Up”
Canadian dollar Goes Up on Improving Risk Sentiment
The Canadian dollar strengthened today, paring its previous losses, after the concern about the fiscal troubles in the Europe receded, driving the stocks up and increasing the bets that the central bank will increase the interest rates in June. The confidence in the euro improved after some good news: China confirmed its willingness to invest in Europe and Spain has taken measures to reinforce its banking systems. And as there weren’t noticeable bad news lately, … “Canadian dollar Goes Up on Improving Risk Sentiment”
China Aids Risk Sentiment, Pound Goes Up
The Great Britain pound rose today after the Chinese government announced that the report that China is reviewing the foreign-exchange holdings of the euro assets is “groundless”, improving the traders’ risk sentiment. The announcement was comforting as China is one of the most significant holders of foreign reserves in the world. The State Administration of Foreign Exchange said that China is the responsible long-term investor and Europe has been and will be a major investment … “China Aids Risk Sentiment, Pound Goes Up”
Dollar Rides on Bad US Figures
Risk aversion is the name of the game these days: US GDP was revised to the downside and jobless claims were higher than expected – the result from these bad numbers – another rise in the dollar across the board. Could this start a fall of the Euro to new lows? Gross domestic product for … “Dollar Rides on Bad US Figures”
Taiwan Dollar’s Appreciation Contained by Central Bank
The Taiwan dollar fell today as the central bank’s policy makers attempt to prevent the speculation leading to the currency’s appreciation. The Central Bank of the Republic of China (Taiwan) takes measures to ensure that the loans won’t be used in the speculation and set the one-week deadline to invest or repatriate the money brought into the country. Such actions make the traders to avoid the Taiwan currency, despite the fact it’s considered the most undervalued currency among the Asian currencies. USD/TWD … “Taiwan Dollar’s Appreciation Contained by Central Bank”
Euro Rebounds After Decline, but Forecasts Remain Pessimistic
The euro rebounded today after the yesterday’s drop despite the forecasts about possible decline to parity with the U.S. dollar and the threat of the break-up of the Euro-zone. The concerns remain, nevertheless. Unexpected Germany’s decision to ban naked short selling showed that the European Union’s nations don’t have the single policy to deal with the problems in the region. And without the unified strategy the Euro-zone has little chance to survive. The analysts say that the European Union should … “Euro Rebounds After Decline, but Forecasts Remain Pessimistic”
Dollar Rises with Economic Expansion in U.S.
The U.S. dollar rose against the euro and the Great Britain pound today as the debt crisis threatens to spread across the European countries, increasing the demand for the safety, while the U.S. economy shows the accelerating growth, rising the appeal of the U.S. currency as the safe haven, though the Japanese yen managed to outperform the greenback. The durable goods orders increased by 2.9% in April, which is significantly better result than forecasted growth by 1.4%, showing the accelerated expansion … “Dollar Rises with Economic Expansion in U.S.”