The euro strengthened today after European Union’s policy makers announced their plans about the rescues package to help the indebted countries in the region. The package is valued as much as $962 billion, a rather stunning number, and is intended to ease the fiscal crisis, especially in such countries as Greece, Portugal and Spain. Some solid information about the rescue plans after the prolonged period of the uncertainty improved the confidence in the euro, but whether it would … “Euro Regains Strength on News About Bailout”
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Confidence in Sterling is Rising on Good Economic Data
The Great Britain pound rose today against some of its most trading counterparts as the declining number of jobless claims, the improving consumer confidence and the increasing number of home-loan approvals suggested that the U.K. economy is stronger than European Union’s economy. Britain’s economy is expected to grow by 2.2 percent annual rate by the end of this year, compared to Europeâs forecast of the 1 percent growth. The confidence in the U.K. currency is rising … “Confidence in Sterling is Rising on Good Economic Data”
How Japan Took the Safe Haven Role from Switzerland
The Swiss Franc didn’t work as a safe haven currency during the recent crisis – the dollar and the yen took this role. Here’s the story. In the past, the Swiss Franc had a reputation as the No. 1 safe haven currency. This means that every time that there was an economic crisis, political instability, … “How Japan Took the Safe Haven Role from Switzerland”
U.S. Dollar Rally Was Halted by Week’s End
The U.S. dollar was steadily rising this week against most other major currencies boosted by the concern about Greece’s fiscal crisis, while the good fundamentals showed that U.S. economy is expanding, though by the end of the week the greenback posted a slight drop. Jean-Claude Trichet, the President of the European Central Bank, refused to buy the government bonds in order to ease Greece’s crisis. At the same time, the U.S. economic recovery was underway, … “U.S. Dollar Rally Was Halted by Week’s End”
Canadian Dollar Strengthened by Good Employment Data
The Canadian dollar strengthened today on the speculation that the borrowing costs may be increased by the central bank after the employment significantly increased the last month, though the renewed hopes about the favorable outcome of the European debt troubles helped the euro to outperform the Canadian currency. The number of jobs in Canada rose by 108,700 in April after the increase of 17,900 in the month earlier. The surge of the employment in the U.S., the largest trading partner of Canada, also added to loonie’s strength. … “Canadian Dollar Strengthened by Good Employment Data”
Aussie Rebounds on Hopes for Positive Outcome of Greece’s Crisis
The Australian dollar gained against most other major currencies, including its U.S. counterpart and excluding the euro, on the speculation that the Group of Seven nations will take measures to contain the spread of the Greece’s debt crisis. The Reserve Bank of Australia improved the forecasts for the domestic growth and the inflation today. The central bank should remain cautious about raising the interest rates in the light of the European troubles. The report about the employment surge in the U.S. also helps … “Aussie Rebounds on Hopes for Positive Outcome of Greece’s Crisis”
Sterling Faces Unfavorable Election Outcome
The Great Britain pound tumbled today as the Parliamentary election hasn’t showed the clear winner, confirming expectations of the hung parliament and spurring fears that the new government won’t be able to deal with the budget deficit. The U.K. budget shortfall is 167 billion-pound ($244 billion), which is more than 11 percent of gross domestic product and the largest deficit in the Group of Seven nations. The election may face legal challenges as the voters … “Sterling Faces Unfavorable Election Outcome”
Euro Rises vs. Dollar, Yet Rebound Considered Short-Term
The U.S. dollar halted its 4-day rally against the euro and fell today on the speculation that the European governments and the central banks will contain the spread of the debt crisis as the Group of Seven nations plans to discuss the fiscal troubles of Greece. The experts consider the previous depreciation of the common European currency a bit excessive. Yet they say that the rebound is purely technical and doesn’t really reflect the general investors’ outlook for the euro, which remains … “Euro Rises vs. Dollar, Yet Rebound Considered Short-Term”
Investors are Pessimistic About EU Economy, Causing Euro to Fall
The euro extended its slump today for the fourth day as Jean-Claude Trichet, the President of the European Central Bank, announced that the buying of the government bonds wasn’t discussed at the ECB meeting today. The ECB kept its benchmark interest rate at the record low 1 percent. Trichet said: “We call for decisive actions by governments to achieving a lasting and credible consolidation of public finances”. He claimed that European economy was slowed in the first quarter … “Investors are Pessimistic About EU Economy, Causing Euro to Fall”
Swiss Franc at Record High Level Against Euro
The Swiss franc performed the huge leap against the euro today and rose against the U.S. dollar on the speculation that the Swiss National Bank will stop to contain the currency’s appreciation. In the previous month the currency was falling against the greenback and remained at approximately the same level against the euro. The SNB tried to prevent the appreciation of the frank in an attempt to contain deflation and to help the recovery of the nation’s economy. But now the economists start talking about the possible relaxation … “Swiss Franc at Record High Level Against Euro”