China’s GDP was very strong. The currency that benefits the most is the Aussie, which settled above an important line. Update on this strong currency. Growth in China was very strong – an annual rate of 11.9% in the first quarter of 2010. This is better than Q4’s growth of 10.7%, and also better than … “Aussie Grows with China”
Author: admin_mm
Demand for Higher-Yielding Assets Pushes Aussie Up
The Australian dollar advanced today, supported by the unexpectedly high growth of the U.S. retail sales, which spurred speculation about the rising demand for the higher-yielding assets. The U.S. retail sales jumped 1.6 percent the last month. As the demand for the higher-yielding assets goes up, the speculative investors are attracted to Australia with its interest rates are as high as 4.25, compared to the benchmark rates in Japan (0.1 percent) and in the U.S. (0–0.25%). The Australian currency also … “Demand for Higher-Yielding Assets Pushes Aussie Up”
Franc Falls Versus Euro as SNB Attempts to Prevent Appreciation
The Swiss franc fell versus the euro on the speculation that the central bank was performing the selling of the currency to prevent its excessive appreciation because of the slowing economic recovery. Earlier Jean-Pierre Danthine, the Governing Board member of the Swiss National Bank, stated that policy makers are determined to prevent âany excessive appreciationâ of the franc. He also admitted that the SNB is unable to carry on the buying of the foreign currencies indefinitely. The Swiss policy … “Franc Falls Versus Euro as SNB Attempts to Prevent Appreciation”
Singapore Dollar Was Revaluated
The Singapore dollar experienced the unexpected surge as the government revaluated the currency after the forecast about the widening economy and the increasing inflation. This decision reflects the broader trend for the Asian countries to shift their attention and resources from the economic stimulation to the containment of the inflation as the prices for the commodities rise. The decision may also signal about the policy maker’s belief that China is going to let its currency float, ending the yuan’s peg to the dollar. The Monetary … “Singapore Dollar Was Revaluated”
Yen Drops While Global Recovery Continues
The Japanese yen dropped to the lowest level in the week against the euro on the speculation that the continuing economic rebound will spur demand for the higher-yielding assets. The Japanese currency also fell after the statement of Masaaki Shirakawa, the Governor of the Bank of Japan, that the possibility of the double-dip recession became lower. The 1.2 percent surge of the retail purchases in the U.S. is just another sign of the strengthening economic recovery. The appeal of the yen as the low-risksafe-haven currency decreases as the improving economic … “Yen Drops While Global Recovery Continues”
GBP/JPY – Another Attempt to Break Higher
The Geppy is enjoying risk appetite and other elements to make another attempt to break higher. Will it make it? Update on the forces moving this cross. GBP/USD enjoyed the weekend gaps to jump over the strong resistance line against the dollar. After slipping back down to the critical level, it got a boost: British … “GBP/JPY – Another Attempt to Break Higher”
Dollar’s Strength is Sapped by Increasing Deficit
The U.S. dollar is approaching parity with its Canadian counterpart and is declining against the Japanese yen as the currency is sapped of its strength after the trade balance deficit has increased more than predicted, reducing the appeal of the greenback to the investors. The import demand increased, causing the trade deficit to rise to $39.7 billion in February from $37 billion the month earlier. The deficit may yet be reduced with the aid of the foreign … “Dollar’s Strength is Sapped by Increasing Deficit”
Yuan’s Rise May Be Not Fast, but Is Expected
The Chinese yuan may gradually rise as the China’s government is likely to let the nation’s currency to appreciate in order to fight the inflation, but the sharp increase because of the foreign pressure isn’t expected. The 17 percent jump of import prices in March from the previous year caused the first balance trade deficit in China since 2004, suggesting that the government should step in to curb inflation, possibly by helping the yuan to go up. The fast surge … “Yuan’s Rise May Be Not Fast, but Is Expected”
Central Bank May Continue to Restrain Zloty’s Gains
The Polish zloty’s appreciation may be restrained as the new head of the central bank will likely to continue the previous governor’s policy of curbing the gains in the nation’s currency. The skyrocketing zloty’s appreciation has hurt the country’s exporters, demanding the intervention from the central bank. The bank’s governor died in the plane crash, which has taken also the life of the Poland’s President, amongst others. On the day before the tragedy the bank performed its first intervention in 12 … “Central Bank May Continue to Restrain Zloty’s Gains”
It isn’t over – Greece will continue weighing on the
The details of the bailout plan sent the Euro far up on a weekend gap. While the gap isn’t filled, the troubles are far from over, and a new fall can happen anytime. 30 billion euros from the European Union in safety net money were promised to Greece just before the markets opened. This caused … “It isn’t over – Greece will continue weighing on the”