Loonie Rises vs. Greenback, Falls vs. Euro

The�Canadian dollar rose against its U.S. counterpart after two days of�decline as�demand for�the�crude oil, the�main Canada�s export, increased and�the�commodity prices rallied. The�loonie performed not so well against other currencies, including the�euro, against which Canada�s currency continued to�fall.

The�S&P 500 Index dropped 0.8 percent. The�decline of�the�stocks usually followed by�the�decline of�the�loonie, but this time the�effect of�the�falling equities was muted by�the�rallying commodities. Crude oil futures rose for�the�first time in�a�week, advancing by�1.4 percent to�$78.03. Copper futures went up to�$3.2765 per pound, the�highest level since May 4th. The�natural gas futures rallied for�the�fourth day.

The�Canadian currency lagged behind other currencies, failing to�profit from the�greenback�s weakness to�the�full extent. One of�the�reasons for�this is the�bad economic data from Canada. The�government report showed that the�industrial product price index dropped 0.9 percent in�June from May, the�biggest decline since May 2009.

USD/CAD fell to�1.0357 from 1.0384 as�of�20:08 GMT today after dropping as�low as�1.0298. EUR/CAD rose from 1.3492 to�1.3544.

If you want to�comment on�the�Canadian dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Canadian Dollar:

This entry was posted on Thursday, July 29th, 2010 at 10:08 pm and is filed under Canadian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Brazil’s Real Rises on Better Consumer Sentiment

The�Brazilian real advanced today against the�euro on�the�speculation that demand for�the�South American exports would grow as�the�European economic outlook brightened. The�currency declined versus the�greenback.

The�index of�consumer sentiment in�the�countries of�the�Eurozone rose from 99 to�101.3 in�June. The�resulting appetite for�the�risk on�the�markets helped the�riskier currencies, including the�real, to�gain.

USD/BRL rose to�as�1.7600 of�8:50 GMT after opening at�1.7580. EUR/BRL traded at�2.2921 after it opened at�2.3019.

If you want to�comment on�the�Brazilian real�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Brazilian Real:

This entry was posted on Friday, July 30th, 2010 at 10:51 am and is filed under Brazilian Real. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Brazilian Real Falls as Central Bank May Intervene to Curb Gains

The�Brazilian real declined today on�the�speculations that the�central bank may start selling the�currency for�the�dollars for�the�first time in�more than a�year.

The�central bank needs to�curb the�real�s gains and�protect the�nation�s exporters after the�currency appreciated 6.2 percent in�the�last two months and�the�current account deficit grew. The�bank already has intervened previously, but that wasn�t enough to�stop the�currency�s rally.

USD/BRL traded at�1.7685 as�of�8:24 GMT after opening at�1.7665 and�falling as�low as�1.7625.

If you want to�comment on�the�Brazilian real�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Brazilian Real:

This entry was posted on Wednesday, July 28th, 2010 at 10:25 am and is filed under Brazilian Real. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Aussie Falls as Low Inflation Promises Unchanged Interest Rates

The�Australian dollar fell today for�a�second day against its U.S. counterpart as�the�in�inflation rose slower than expected, fueling the�speculation that the�central bank would keep the�interest rates unchanged.

The�consumer price index rose 0.6 percent in�the�June quarter 2010, compared with the�rise of�0.9 percent in�the�March quarter 2010. The�forecasts promised the�1.0 percent growth. There are not many reasons for�the�Reserve Bank of�Australia to�raise the�interest rates next week, though the�bank still may raise the�rates later this year. The�Aussie will probably decline to�$88.50 in�the�near term.

AUD/USD declined from 0.9022 to�0.8954 today as�of�9:29 GMT after falling as�low as�0.8922.

If you want to�comment on�the�Australian dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Australian Dollar:

This entry was posted on Wednesday, July 28th, 2010 at 11:29 am and is filed under Australian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Dollar Declines vs. Yen as Durable Goods Orders Unexpectedly Fell

The�U.S. dollar fell today against the�Japanese yen after the�report today showed that the�orders for�the�U.S. durable goods fell unexpectedly in�June, fueling the�concern for�the�economic recovery and�spurring the�investors to�turn to�the�safety of�Japan�s currency. The�EUR/USD moves up and�down today after it closed yesterday near its opening level.

Durable goods orders declined for�the�second consecutive month, falling by�1.0 percent in�June after dropping 0.8 percent in�May. The�impact of�this report was even more significant as�the�market participants anticipated the�growth, not another month of�decline. The�unfavorable economic data outweighed the�better than expected corporate earning, causing the�Standard & Poor�s 500 Index drop by�0.5 percent. The�Stoxx Europe 600 Index was down 0.4 percent.

Ben Bernanke, the�Chairman of�the�United States Federal Reserve, said on�July 21st that �the�economic outlook remains unusually uncertain�. The�data from the�U.S. definitely added to�the�risk aversion sentiment on�the�markets, increasing the�appeal of�the�yen.

USD/JPY traded near 87.67 as�of�16:27 GMT today after opening at�87.90. EUR/USD near 1.2995 close to�the�opening level of�1.2996.

If you want to�comment on�the�U.S. dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the U.S. Dollar:

This entry was posted on Wednesday, July 28th, 2010 at 6:27 pm and is filed under U.S. Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Zloty Rise vs. Euro as Economic Growth May Cause Rates Hike

The�Polish zloty extended its rally for�the�eighth consecutive day against the�euro as�the�estimates of�the�Economy Ministry showed that the�economy grew with the�increasing pace, igniting the�speculation that the�central bank may raise the�interest rates. The�Polish currency dropped against the�U.S. dollar slightly.

The�Economy Ministry�s report showed that the�gross domestic product grew by�3.1 percent in�the�first half of�this year, compared 1.8 percent in�2009. The�ministry also estimated that the�annual rate of�the�private consumption grew by�2.2 percent. The�Polish currency rose the�most against the�euro today among other emerging market currencies.

Nigel Rendell, senior emerging-market strategist at�RBC Capital said

The�international environment has been quite helpful and�the�wave of�uncertainty has been removed so that�s encouraging people to�go into emerging markets and�the�zloty looks best in�the�region. The�possibility that interest rates may be lifted before the�end of�the�year is also acting as�an�incentive.

EUR/PLN traded at�4.0018 today as�of�19:57 GMT after opening at�4.0054. USD/PLN fell to�3.0822 from the�opening rate of�3.0791.

If you want to�comment on�the�Polish zloty�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Polish Zloty:

This entry was posted on Wednesday, July 28th, 2010 at 9:57 pm and is filed under Polish Zloty. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Dollar Weakens as Risk Sentiment Improves

The U.S. dollar weakened today as the new home sales surged in the U.S. and the corporate earning increased, improving the appetite for the risk among the investors. The greenback fell versus most of other major currencies.

The U.S. new home sales jumped in June to 330,000 (23.6 percent) from the revised May rate of 267,000. The U.S. house market was showing the awful values previously, and this improvement, while not unexpected, is much better than the economists hoped for. The Standard & Poor’s 500 Index rose 0.6 percent after jumping more than 3.5 percent in the previous week.

The improving risk sentiment spurred the investors to the riskier currencies, decreasing the appeal of the U.S. currency. The signs of rebound in Europe’s economy helped the euro to gain versus the greenback, while the Great Britain pound rose against the dollar after all major Britain’s banks passed the stress tests.

EUR/USD rose to 1.2997 as of 17:41 GMT today after it opened at 1.2887. GBP/USD reached the highest level in three months, climbing to 1.5490 from 1.5416. USD/JPY traded at 86.94 after it opened at 87.45 and jumped as high as 87.71.

Price Action

Loonie Rises vs. Greenback

The Canadian dollar went up today against its U.S. counterpart as the gains of the U.S. equities and the improving conditions on the U.S. housing market bolstered the currencies tied to the growth, including the loonie. The Canadian currencies declined somewhat versus the euro.

The Standard & Poor’s 500 Index rose by 1.1 percent. The futures for crude oil, main Canadian export, traded near $78.99 per barrel after touching $79.30 per barrel on July 22, the highest level since May 5 on a closing basis. The new home sales in the U.S. reached 330,000 in June, compared to the median forecast of 317,000.

The Canadian dollar tends to move according to the commodity prices and the risk appetite. Today the appetite for the risk was definitely present at the markets.

USD/CAD reached 1.0322 today as of 22:17 GMT after it opened at 1.0372. EUR/CAD currency pair went up to 1.3402 from the opening level of 1.3377.

Price Action

Rand Appreciates as Interest Rates Remained Unchanged

The South African rand extended its rally today for the fifth day as the prices for platinum and gold rose and the central bank kept the benchmark rate unchanged.

The South African Reserve Bank kept the repurchase rate at 6.5 percent. This move wasn’t unexpected, but there were quite a few traders who bet on the rate cut. The high South African rates, compared to the rates in Japan (0.1 percent) and in the U.S. (0.25 percent), should attract to the country the investors interested in the carry trades.

USD/ZAR traded near 7.396 as of 9:56 GMT after it opened at 7.408.

If you want to comment on the South African rand’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the South African Rand:

Rand Strengthens as Global Recovery Gains Momentum (2010-07-09)South African Rand Strengthens After G-20 Meeting (2010-06-28)Trade Deficit Hurts South African Rand (2010-05-31)Rand Weakened by European Troubles & Workers' Strike (2010-05-25)South African Rand Bolstered by Solid Economic Growth (2010-05-24)
Price Action

Yuan Strengthens and May Appreciate Further

The Chinese yuan strengthened today as the central bank kept its reference rate unchanged and after the stress test of the European banks failed to improve the confidence in the strength of Europe’s economy.

http://www.asiaforexmentor.com

Near-Term Outlook for Decline of U.S. Dollar

The U.S. dollar was rising as the European crisis increased the demand for the safe currencies, but recently began to decline as the focus of the concerns turned to the U.S. themselves. While at the end of this week the greenback rebounded against some other major currencies, the future of the U.S. currency looks uncertain.

The dollar will likely weaken in the near future unless some good news from the U.S. prove the strength of the currency. The lower number of the jobless claims may spark some optimism, but other than that there is nothing to be hopeful about. In case the speculations that the European economy is stronger than it looks would prove true, the greenback will certainly fall further.

The moves of the EUR/USD currency pair can be expected to be volatile, as the sentiment shifts according to the news from Europe and the U.S. For now the shared European currency shows trend to rebound as there are more bad news from the U.S. than from Europe. On the other hand, the gains of the euro can be restrained by the uncertainty, brought to the global markets by the weakness of the U.S. economy. GBP/USD may experience some volatility too as the traders are uncertain yet what influence the budget cuts will have on Britain’s economy, so we should wait until picture becomes clear here to predict where the currency pair will go. The Japanese yen are likely to profit from the concerns about the U.S. and global economies and continue its rally against the greenback.

The dollar is nowhere near parity with the euro. It’s unlikely that greenback will go above 1.20 per euro in the near term. For now it hasn’t fallen far beyond 1.30 per euro level, but we should wait to determine if this would be the support level. Against the sterling the greenback wouldn’t probably weaken beyond 1.5475 per pound level and might trade near 1.5150 per pound. The dollar will likely be traded near the current level against the Aussie, while against the loonie it may rise to 1.0675 before dropping again.

Forex Trading

Bank of Canada Raises Rate, CAD Reacts Positively

The Canadian dollar rose against all major currencies after the country’s central bank decided to increase the target overnight rate to 3/4 percentage point on its meeting today.

The Bank of Canada announced in its statement that the interest rate is increased from 0.50 percent to 0.75 percent today. Although this decision has been expected by the majority of the market analysts, the resulting positive effect for the Canadian dollar was rather strong — it rose significantly against the U.S. dollar, the euro and the Japanese yen.

Despite the fact that the growth of the Canadian economy is slowing down, the analysts believe that the Bank of Canada may continue increasing the rates for some time, as the rate of growth of the economic output is still one of the biggest among the developed nations. Canada is now a leader by rate hikes among the G7 countries.

USD/CAD went down from 1.0545 to 1.0491 as of 17:15 GMT today. EUR/CAD dropped from 1.3654 to 1.3533, while CAD/JPY showed a growth from 82.25 to 83.11 today.

Forex Trading

Japanese Yen Recovers as Markets Prepare for Risk Aversion

The Japanese yen rose against its major counterparts today, following the bearish session yesterday, as the traders expect some rise in the risk averting sentiment among the market participants before fundamental releases, stress test results.

The yen rose against the U.S. dollar, the euro and the pound (and even a rather bullish Aussie) as the traders expect a speech by Fed‘s Ben Bernanke later today. They also expect some moderately pessimistic reports on the employment and real estate markets tomorrow. European banks’ stress test results are to be released this Friday and there are concerns that they won’t be as good as some euro optimists expect. This all spur the popularity of the ”safe haven” Japanese yen.

USD/JPY fell from 87.43 to 87.06 as of 9:20 GMT today. Meanwhile, EUR/JPY declined from 112.71 to 112.00 and GBP/JPY, having fallen the least, demonstrated a drop from 133.51 to 133.04.

Forex Trading

AUD Falls as Interest Rate Expectations Decrease Optimism

Following a rapid growth yesterday, the Australian dollar declines against its major counterparts (except euro) today as the market participants expect the interest rates to be on hold for some time.

Worsening global economical situation spurs pessimistic expectations towards Australia’s interest rate. At 4.50 percent it’s already the highest among the developed nations and provided a good support for the currency. The Australian dollar fell against the USD, JPY and even against its New Zealand counterpart today.

The data on Australian PPI and CPI is released next week. Currency analysts believe the Reserve Bank of Australia won’t be hiking the rates until the higher than expected CPI data forces the regulator to elevate the cash rate. As the RBA said in its minutes of the July meeting:

The important question for the Board at its next meeting would be whether the new information materially changed the medium-term outlook for inflation.

AUD/USD declined from 0.8836 to 0.8772 as of 18:39 GMT today. AUD/JPY fell from 77.26 to 76.34, while AUD/NZD currency pair went down from 1.2314 to 1.2305 today.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Forex Trading

Korean Won Recovers on Corporate Report

The South Korean currency recovered its losses after dipping down earlier today as the corporate report from Hynix boosted the investors’ interest in the country’s stock market.

The South Korean won was declining earlier as the traders reacted to the yesterday’s speech by Ben Bernanke, which stated that the U.S. economical situation is still very uncertain. Hynix Semiconductor Inc. reported $870 million operating profit for the second quarter of 2010, 30.8 percent higher than in Q1. Despite the fact that the Korean stock market closed with a daily negative result, analysts express optimism in the currency and the stocks.

USD/KRW rose from 1203.40 to 1204.10 today after going as high as 1209.35 during the early trading session in Seoul.

Forex Trading

European Data Boosts Australian Dollar

Better than expected news from the Eurozone helped the Australian dollar to grow against all other major currencies today despite the pessimism expressed by the RBA yesterday.

The Aussie rose against the greenback to the highest level since mid-May (this year) and extended its gains against the euro. The currency also rose against the Japanese yen and its New Zealand counterpart. The Australian dollar has been falling yesterday on concerns about the European banks’ stress tests and the statements by the Reserve Bank of Australia.

The major moving factor for the AUD were reports on Purchasing Manager Index in manufacturing and services in Eurozone. Both reports demonstrated growth and the higher than expected values. Manufacturing PMI rose from 55.6 to 56.5 and Service PMI rose from 55.5 to 56.0.

AUD/USD rose from 0.8768 to 0.8939 as of 17:28 GMT today after going as high as 0.8951 earlier — the highest level since May 14. AUD/JPY increased from 76.25 to 77.78, while EUR/AUD fell from 1.4540 to 1.4430.

Forex Trading

Euro Grows Somewhat on European Banks Stress Test Report

The euro rose today after the European supervising agency released its report on the stress test results of 91 banking institutions on 16:00 GMT. Though, the impact of the release wasn’t very strong.

The euro rose against the U.S. dollar after the release was made available to the public. Having fallen earlier today, the Eurozone currency began to rise about 2 hours before the report, then went through an hour of strong market volatility and then ended up in a rather sound bullish trend wave. It failed to go up against the British pound as the latter was experiencing a very prominent trading session today.

The Committee of European Banking Supervisors reported on the strength of the of the EU banking sector today. A 55-page summary of the report mentions 7 banks that failed the test (majority of them comes from Spain). But it looks like the report didn’t impress the market participants as there wasn’t any definite unidirectional movement after the release.

EUR/USD rose from 1.2887 to 1.2918 as of 19:29 GMT today after falling to as low as 1.2793 earlier. EUR/JPY increased from 112.16 to 112.97.

Forex Trading

Loonie Weekly Recovery — Stocks and Oil

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Loonie Weekly Recovery — Stocks and Oil

Euro Up on Stress Test Speculations

The euro is growing against the other major currencies today, as the European banks’ stress test speculations provide a better ground for the Forex traders than the sovereign debt risk concerns in some of the Eurozone countries.

The currency rose against the U.S. dollar, the pound and the yen after opening with a bearish weekly gap and losing slightly during the early trading session. European officials are stress-testing 91 banks, trying to determine their level of strength against the crisis. The results of the test are to be released on July 23. The euro optimists are expecting the stress test results to show good results with the majority of banks doing well.

Meanwhile the euro is still traded under a potential threat of the sovereign debt crisis from such countries as Ireland, Greece or Portugal. Moody’s have downgraded Ireland’s government bond rating from Aa1 to Aa2 today. Hungarian forint has also performed badly today after the IMF refused to issue a loan for now. Although Hungary isn’t in Eurozone yet, it’s a potential member and its fiscal troubles influence the course euro.

EUR/USD rose from 1.2903 to 1.2954 as of 16:16 GMT today, it traded at as low as 1.2870 earlier today. EUR/JPY went up from 111.70 to 112.35, while EUR/GBP jumped up from 0.8438 to 0.8512.

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Euro:

Euro Strengthens This Week a Bit (2010-07-17)Euro Weakens with Less than Expected Economic Growth (2010-07-14)Can European Economy Return Strength to Euro? (2010-07-13)Euro Drops vs. Dollar on Debt Crisis Concerns (2010-07-12)Euro Rises on Growth Outlook (2010-07-08)
This entry was postedon Monday, July 19th, 2010 at 6:21 pmand is filed under Euro.You can follow any responses to this entry through the RSS 2.0 feed.You can skip to the end and leave a response. Pinging is currently not allowed.

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Euro Strengthens This Week a Bit

The euro moved up and down this week as the investor sentiment improved after Greece and Spain auctioned their debts, but the gains of the currency were restrained by the concern for the global growth, fueled by the bad economic indicators of the U.S. economy.

The euro dropped against the U.S. dollar on Monday, then was rising for the three day, and on Friday slightly fell again. The moves versus the Japanese yen were rather volatile as every day of losses were succeeded by day of gains; as a result, EUR/JPY currency pair closed this week near its opening level. The 16-nation European currency was rising for almost entire week against the Australian and Canadian currencies.

There is significant weakness remains in the euro. But as the focus of concerns shifts to the U.S., the shared Europe’s currency may rise higher. Of course, totally opposite may happen and the concerns, caused by the U.S., may drag the euro down.

EUR/USD closed at 1.2926 after opening at 1.2641 and reaching the highest level in the week of 1.2641. EUR/JPY closed at 112.01 after it opened at 112.10.

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Euro:

Euro Weakens with Less than Expected Economic Growth (2010-07-14)Can European Economy Return Strength to Euro? (2010-07-13)Euro Drops vs. Dollar on Debt Crisis Concerns (2010-07-12)Euro Rises on Growth Outlook (2010-07-08)Euro Recovers Slightly as Equities Rise (2010-07-06)
This entry was postedon Saturday, July 17th, 2010 at 8:59 pmand is filed under Euro.You can follow any responses to this entry through the RSS 2.0 feed.You can skip to the end and leave a response. Pinging is currently not allowed.

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