The New Zealand’s dollar advanced versus its U.S. counterpart for the second straight day as the nationâs interest-rate advantage over the U.S. reached its highest level since 2008 after the central bank raised its benchmark rate on April 6th. The Reserve Bank of Australia declared that the increase of the benchmark rate on April 6th was the âfurther stepâ to return the interest rates to the average levels. The Australian dollar was also supported by the rising … “Interest Rate Advantage Boosts Australian Dollar Against Greenback”
Author: admin_mm
Interests Rates: Looking Through the Fed’s Eyes
Guest post by David Leal, Market Analyst – IntegrityFXPlus.com Like any other good, the value of a currency is determined by the forces of supply and demand. However, in currencies the supply of currencies is controlled by the central banks. They are the single most influential entity on a currencies value. So, it is obviously … “Interests Rates: Looking Through the Fed’s Eyes”
Pound Is Rising with U.K. Production
The Great Britain pound rebounded against the U.S. dollar and the Japanese yen on the signs that the factory production in the U.K. surged in February by twice as much as the analysts predicted, to the highest since 2008, as the recent declines of the pound were helping the economy to recover. Manufacturing output increased 1.3 percent compared to the month earlier and the index of the factory production jumped to 90.1, the highest level since December 2008. The pound declined earlier as the election polls left uncertainty … “Pound Is Rising with U.K. Production”
Canadian Dollar Resumes Its Rally to Parity After Falling
The Canadian dollar fell versus its U.S. counterpart after it have reached parity for the first time since July 2008 for a second straight day after the report that the Bank of Canada revealed its plans to increase the interest rate with a faster pace, but then erased its loses and is heading to parity again at present time. Mark Carney, the Governor of the Bank of Canada, announced in the previous month his intention … “Canadian Dollar Resumes Its Rally to Parity After Falling”
Rand Rebounds After Falling on Concern for Power Funding
The rand dropped today for the third straight day as the speculation that the World Bank won’t grant the loan for Eskom Holdings Ltd., which would be used to fund the construction of the coal-fired Medupi plant, arose concern for economic expansion of the region and doubts about the capital inflows, but after its fall the currency rebounded. Eskom Holdings Ltd. is the South Africaâs state power utility, which provides about 95 percent of South … “Rand Rebounds After Falling on Concern for Power Funding”
What will move the Pound out of range?
The British Pound received good figures today, such as the GDP estimate, but is still bound in a range. Here are 3 things that push it up, three things that push it down, and some thoughts on what will move it away from the range – with the downside seeming more likely. GBP/USD is trading … “What will move the Pound out of range?”
EUR/JPY – Fear sent it off the cliff – More to come?
The forex markets are giving in to widespread fear about the Greek debt. We are seeing a full market reaction – a perfect risk aversive behavior, with one huge loser – EUR/JPY. Will it continue plunging? Growing worries about the never ending Greek debt problems are strongly reflected in the market. I wrote about the … “EUR/JPY – Fear sent it off the cliff – More to come?”
China Lets Yuan Appreciate
The Chinese yuan gained on the prospect that the central bank will stop keeping the currency at current rate, removing the a 21-month-old peg, and allow it to appreciate, attempting to keep the inflation under control and also to make imports cheaper. The Peopleâs Bank of China revealed its plan to sell the three-year bills to drain the cash from the financial system for the first time since 2008, causing the speculation that this may be followed by the increase in the benchmark … “China Lets Yuan Appreciate”
Indian Rupee Falls as Importers Prefer Dollar
The Indian rupee fell as importers, particularly the nationâs refiners, increased the buying of the U.S. dollar to pay for increasingly costlier overseas purchases, utilizing the U.S. currencyâs strength. The stronger rupee may attract trader by decreasing the cost of overseas shipments, but for now gains in the greenback has made U.S. currency more appealing for importers, who are looking for the ways to lower their expenditures as the prices for commodities, especially the crude oil, are rising worldwide. … “Indian Rupee Falls as Importers Prefer Dollar”
Will Self-Supporting Recovery Help Yen?
The Japanese yen may rebound after its recent recessions against the majors as Masaaki Shirakawa, Governor of the Bank of Japan, expressed hope that the economic recovery, which apparently became self-supporting, will continue. The sales are increasing since the policy makers doubled the lending program for banks last month, boosting the confidence in businesses and consumers’ purchasing capability despite the falling prices and wages. Shirakawa said today at the news conference: “We have … “Will Self-Supporting Recovery Help Yen?”