U.S. dollar ended this week on a rising edge against euro, pound and yen after Fed‘s Chairman Ben Bernanke joined Donald Kohn in his hinting the markets, that next interest rates cut will be most probably made during FOMC‘s December 11 meeting. Bernanke spoke yesterday at the presentation of the Citizen of the Carolinas Award in Charlotte Chamber of Commerce, Charlotte, North Carolina. The main idea of his speech can … “U.S. Dollar Rises on Bernankeâs Cut Signaling”
ECB Worries about Inflation Rising
October consumer prices inflation report added some new troubles for ECB to worry about as the released 2.6% CPI growth last month exceeded ECB’s target of 2.0%, while the economy growth is not performing at the pace that would allow another rate hike soon. Until September 2007 ECB had fought inflation with some success – … “ECB Worries about Inflation Rising”
Fed Cut Talks Increase Confidence in High Risk Currencies
Recent talks by Federal Reserve Vice Chairman Donald Kohn about possible interest rates cut by the Fed added confidence to the Forex market traders that rely on buying risky currencies with the cheap low risk Japanese yen – so called carry traders. Worried by the high possibility of U.S. economy recession (stated by all major … “Fed Cut Talks Increase Confidence in High Risk Currencies”
Danger of Forex Reserves Change
Li Yang, an ex-adviser of the People’s Bank of China, suggests a great care in handling any changes to the country’s foreign currency reserves (world’s largest), that are currently composed mainly of U.S. dollars. By the Li’s words, it’s not reasonable to change the vast amount of current reserves, but the new income that goes … “Danger of Forex Reserves Change”
Russian Foreign Currency Reserves Continue to Grow
Foreign currency reserves of the Russian Federation grew up for the seventh week in a row and now are at their record high value — $459.6 billion. As the oil prices are surging to their new maximums the oil-exporting Russian economy wins greatly, increasing the profits of the country’s largest oil companies and supplying national currency reserves with new dollars. Russia has the third largest national reserves in the world, lagging behind China’s $1.4 trillion … “Russian Foreign Currency Reserves Continue to Grow”
Dollar Bouncing Up
U.S. Dollar gained 0.5% against euro today after the Abu Dhabi government bought a $7.5 billion stake from Citigroup Inc. This sum will help Citi to recover from the recent subprime lending write-offs, as this bank announced surprisingly high losses from this kind of lending. EUR/USD fell below 1.4800 mark after a good fundamental signal … “Dollar Bouncing Up”
Chinese Yuan on the Road to Revaluation
Chinese yuan will definitely see a some kind of revaluation against dollar and other major currencies soon. Jean-Claude Trichet spoke today about his latest endeavor to convince China government to make confident steps towards stronger yuan policy. From his words the Chinese central bank understands the concerns of their trade partners and the steps will … “Chinese Yuan on the Road to Revaluation”
Canadian Continues to Fall
Canadian dollar depreciated to its monthly lows today after global commodities prices went down. The OPEC warned that they might increase the oil output to counter the possible economical slowdown on oil-importing countries. That message caused a decline in oil prices. Canada is one of the world’s largest oil exporters which is not in OPEC. Decreasing oil prices make Canadian currency less attractive to foreign buyers. USD/CAD … “Canadian Continues to Fall”
Indian Rupee Continues Decline
Indian rupee continued its decline against U.S. dollar started more than a 10 days ago. Fueled by the demand for foreign oil, dollar buying weakens rupee as the interbank Forex traders massively sell rupees. Rupee is falling since November 14, when the carry trade slump started to affect Indian economy. With higher global volatility investors decreased their appetites for the risky Indian equities and thus the Indian … “Indian Rupee Continues Decline”
Canada Confirms Dollar Too Overvalued
Canadian Prime Minister, Stephen Harper, confirmed yesterday that his vision of latest CAD’s fast and strong appreciation against USD coincides with the opinion stated by Canada’s Financial Minister Jim Flaherty. The surprisingly high strengthening of Canadian currency bears highly speculative nature and is essentially harmful to the Canada’s economy. Canada already felt the effect of its currency appreciation as the retail sales and factory orders showed a worse than expected … “Canada Confirms Dollar Too Overvalued”