The Japanese yen rose today against most other major currencies on the speculation that the slowdown of the global economic growth will increase demand for the Japanese currency as the safe haven.
The Canadian dollar slipped today after the economic reports from both the US and Canada itself intensified the concerns about the slowdown of the global economic growth.
The US dollar weakened today against most other major currencies after the unemployment claims unexpectedly surged and other reports signaled that the economic recovery in the US is slowing.
The Great Britain pound rose today versus other major currencies as the nation’s budget shortage in July was smaller than expected.
Friday, August 20, 2010
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros 20-aug-2010
8/19/2010 07:00 am: EUR/$..1.2850 $/JPY..85.54 GBP/$..1.5661 $/CHF..1.0385 AUD/$..0.9013 $/CAD..1.0269
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros
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Asia Pacific markets were firmer after a lackluster performance in US equities saw the Dow and the S&P close virtually flat on the session, while the Nasdaq posted a marginal gain of 0.3%. With no economic data on the calendar, markets have been driven by corporate earnings and M&A activity, with mining giant BPH Billiton's hostile bid for Potash Corp making global headlines. The Nikkei 225 was the strongest performer in the region, advancing by more than 1.3% on speculation that the BoJ may implement additional monetary easing measures in an effort to stem deflation and combat recent strength in the yen. The Hang Seng index and the Shanghai SE composite were higher by 0.8% and 1.0% respectively, while the S&P/ASX 200 index nudged higher by a meager 0.1%.
Also worth noting is China's decision today to allow the yuan to trade in the domestic market against the Malaysian ringgit for the first time. The move suggests China is taking steps towards a free floating currency, which would undoubtedly see the yuan appreciate considerably against most of the major currencies, save the yen. Having recently surpassed Japan as the world's second largest economy, a stronger yuan could have significant implications on global inflation as the cost of Chinese goods increases. The subsequent domestic slow down could also put pressure on the nation's closest trading partners, as weaker Chinese demand weighs on commodities and commodity backed economies.
Commodity prices were mixed, with crude oil gaining 1.0% to trade at $76.00 per barrel and gold holding just beneath the $1230 mark. Commodity backed currencies were firmer, with the aussie and the loonie advancing nearly .25% against the dollar to trade at .9000 and 1.0270 respectively. The greenback is weaker across the board, with the dollar index falling to 82.30. Bond yields have continued to slowly recover, with the 5-year at 1.477 and the 10-year at 2.67.
This article contains the following sections:
# Euro Gains Lack Conviction
# World Cup Boosts UK Sales
You need to be logged in to Forexnews to view the remainder of this article. Please login with your username and password at the top left corner of the site, or Request Free username and password to receive full access.
Markets Tread Water Ahead of Jobs, USD Slides by Michael Boutros
Advertisement
Asia Pacific markets were firmer after a lackluster performance in US equities saw the Dow and the S&P close virtually flat on the session, while the Nasdaq posted a marginal gain of 0.3%. With no economic data on the calendar, markets have been driven by corporate earnings and M&A activity, with mining giant BPH Billiton's hostile bid for Potash Corp making global headlines. The Nikkei 225 was the strongest performer in the region, advancing by more than 1.3% on speculation that the BoJ may implement additional monetary easing measures in an effort to stem deflation and combat recent strength in the yen. The Hang Seng index and the Shanghai SE composite were higher by 0.8% and 1.0% respectively, while the S&P/ASX 200 index nudged higher by a meager 0.1%.
Also worth noting is China's decision today to allow the yuan to trade in the domestic market against the Malaysian ringgit for the first time. The move suggests China is taking steps towards a free floating currency, which would undoubtedly see the yuan appreciate considerably against most of the major currencies, save the yen. Having recently surpassed Japan as the world's second largest economy, a stronger yuan could have significant implications on global inflation as the cost of Chinese goods increases. The subsequent domestic slow down could also put pressure on the nation's closest trading partners, as weaker Chinese demand weighs on commodities and commodity backed economies.
Commodity prices were mixed, with crude oil gaining 1.0% to trade at $76.00 per barrel and gold holding just beneath the $1230 mark. Commodity backed currencies were firmer, with the aussie and the loonie advancing nearly .25% against the dollar to trade at .9000 and 1.0270 respectively. The greenback is weaker across the board, with the dollar index falling to 82.30. Bond yields have continued to slowly recover, with the 5-year at 1.477 and the 10-year at 2.67.
This article contains the following sections:
# Euro Gains Lack Conviction
# World Cup Boosts UK Sales
You need to be logged in to Forexnews to view the remainder of this article. Please login with your username and password at the top left corner of the site, or Request Free username and password to receive full access.
Thursday, August 12, 2010
BoE Lowers Growth Forecast- Yen Hits 15-Year High 12 -aug-2010
Asia Pacific markets were lower after a late day rally was unable to bring US equities out of the red. The Hang Seng and the S&P/ASX 200 indices were lower by .8% and 1.9% respectively, while the Shanghai SE composite eked out a gain of nearly .5% after a flurry of mixed data. While slightly weaker PPI and retail sales data indicates further slowing in the pace of growth, investors were comforted by inline industrial production and CPI figures. The Nikkei 225 was the worst performer, off by 2.7% as concerns continue to mount regarding the strengthening yen. Exporters were hit hard on speculation that persistent appreciation in the currency will begin to weigh on corporate earnings. European equity bourses are under considerable pressure today after the BoE lowered the UK's growth outlook, sounding cautious warnings of increasing uncertainty in the US and Eurozone economies.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
BoE Lowers Growth Forecast- Yen Hits 15-Year High by Michael Boutros
Asia Pacific markets were lower after a late day rally was unable to bring US equities out of the red. The Hang Seng and the S&P/ASX 200 indices were lower by .8% and 1.9% respectively, while the Shanghai SE composite eked out a gain of nearly .5% after a flurry of mixed data. While slightly weaker PPI and retail sales data indicates further slowing in the pace of growth, investors were comforted by inline industrial production and CPI figures. The Nikkei 225 was the worst performer, off by 2.7% as concerns continue to mount regarding the strengthening yen. Exporters were hit hard on speculation that persistent appreciation in the currency will begin to weigh on corporate earnings. European equity bourses are under considerable pressure today after the BoE lowered the UK's growth outlook, sounding cautious warnings of increasing uncertainty in the US and Eurozone economies.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
US Dollar, Japanese Yen to Pare Gains as Stock Index Futures Erase Losses
The US Dollar and Japanese Yen are likely to pare gains as US index futures all but erase early Asian-session losses ahead of the opening bell in Europe, hinting a deeper correction of yesterday’s spike in risk aversion is ahead.
EUR/USD Classical 08.12
Wednesday’s violent pullback officially confirms short-term topping and opens the door for deeper setbacks over the coming sessions.
Commodities were lower across the board with the exception of gold, which pared earlier losses as risk-off trades boosted demand. Gold is seen higher, with metal trading just below $1200 per ounce early in London trade. Crude oil fell below $80 per barrel for the first time this month to trade at 79.50. The dollar index has recovered all of yesterday's losses after the Fed stated that the "recovery is likely to be more modest in the near term than had been anticipated." The Fed's move to begin, “reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities,” is being dubbed by traders as 'QE lite' and suggests the Fed has moved away from an exit strategy in the interim. Traders are now expecting rates to remain unchanged until early 2011. The dollar index advanced nearly 1.4% to 81.70 as investors flocked to safer, lower yielding currencies like the dollar, the swissy, and the yen. US Treasury yields drifted lower, with the 5-year at 1.41 and the 10-year at 2.73.
US Dollar, Japanese Yen to Pare Gains as Stock Index Futures Erase Losses
The US Dollar and Japanese Yen are likely to pare gains as US index futures all but erase early Asian-session losses ahead of the opening bell in Europe, hinting a deeper correction of yesterday’s spike in risk aversion is ahead.
EUR/USD Classical 08.12
Wednesday’s violent pullback officially confirms short-term topping and opens the door for deeper setbacks over the coming sessions.
Wednesday, August 11, 2010
FOREX NEWS 11-AUG-2010
Sterling Declines as Confidence of Consumers Wanes
The Great Britain pound declined today against the US dollar and the Japanese yen as the concerns about the possible slowdown of the nation’s economic growth weakened the currency.
Rand Weakens on Slower Manufacturing Growth
August 11th, 2010
The South African rand dropped versus the US dollar today, following yesterday’s decline, on the speculation that the growth of the manufacturing output slowed in South Africa.
Aussie Weakens on Reduced Demand for Riskier Assets
August 11th, 2010
The Australian dollar fell today as the signs of the slower economic growth, particularly in the US and China, damped the demand for the riskier currencies.
Dollar Weakens After FOMC Meeting
August 10th, 2010
The US dollar fell versus the Japanese yen and also declined against the Great Britain pound and the euro, remaining above the opening level though, after the Federal Reserve decided to keep the interest rates at the record low level.
The Great Britain pound declined today against the US dollar and the Japanese yen as the concerns about the possible slowdown of the nation’s economic growth weakened the currency.
Rand Weakens on Slower Manufacturing Growth
August 11th, 2010
The South African rand dropped versus the US dollar today, following yesterday’s decline, on the speculation that the growth of the manufacturing output slowed in South Africa.
Aussie Weakens on Reduced Demand for Riskier Assets
August 11th, 2010
The Australian dollar fell today as the signs of the slower economic growth, particularly in the US and China, damped the demand for the riskier currencies.
Dollar Weakens After FOMC Meeting
August 10th, 2010
The US dollar fell versus the Japanese yen and also declined against the Great Britain pound and the euro, remaining above the opening level though, after the Federal Reserve decided to keep the interest rates at the record low level.
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