The European currency slipped in Asian Trade, moving away from a seven-week high period against the Greenback and a 7-1/2 month high against the yen before the ECB meeting. The European Central Bank is expected to keep rates at 0.75% in the meeting of Thursday. Investors analyze to see if the President of ECB Mario Draghi will be willing to cut borrowing costs in the future. Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi stated the following: “Ahead of the ECB meeting, the dollar and yen are being bought back after the euro’s rise.” The outlook for the yen was discredited due to the expectations of pressure received on the BOJ (Bank of Japan) to take easing steps after the elections of 16th of December. The latest Japanese polls show Shinzo Abe as favorite to win.

Deputy of BOJ, Kiyohiko Nishimura stated on Wednesday that the ECB is likely to debate if the monetary easing in September Read more »


The European currency managed to improve its position against the dollar in the last six weeks after the extension of Greek’s debt and the falling of the borrowing costs for the euro zone countries. Analysts state that Euro is likely to gain more in yields on Spain and Italy’s bonds drop lower. The European currency increased with 0.2% to $1.3083, the highest level since the 22nd of October. Traders state that if the currency succeeds to break above the $1.3100 level, it can stop loss buy orders. The head of FX research at Commerzbank stated the following: “We have had a general upward trend in euro/dollar for quite a while and people are looking at news in the euro zone like the debt buyback by Greece.” Greece’s buyback exceeded the market expectations and improved the chances of cutting the debt and receiving other financial aid.

Although the dollar is considered a refuge in these times of financial Read more »


Euro strengthened its position at the strongest level this month against the dollar after the US lawmakers reached an agreement regarding the fiscal cliff, reducing demand for safe assets. The European currency gained more for the first time in four days versus the yen as Italian and Spanish bond rallied. This led to optimism regarding the crisis easing and the improvement of the financial situation of Europe. Krona, Sweden’s national currency was appreciated against all the 16 major counterparts after the economy developed more than the analysts’ predictions. Sweden’s currency rose for the second day against the dollar after GDP increased 0.5% in the 3rd quarter. The currency increased to as much as 0.4% to 6.6201 per dollar.

John Boehner, speaker of US Republican House stated that he had optimism regarding averting the budget crisis. Adam Myers, director of foreign- exchange market strategy at Credit Agricole SA (ACA) stated the following referring to Boehner’s declaration: “There’s a bit Read more »


The yen dropped to the lowest level in the last six months against the dollar. The prospects of the Japanese elections expected the next month will transfer power to the opposite party that pleads to an aggressive monetary improvement. The greenback managed to gain against 16 other currencies as a report stated that the cost of living increased the previous month at a slow pace. Japan’s currency began to destabilize its level to a two-week low against the euro. The GBP has dropped to a 10-week low level against the greenback, as shown in the UL retail sales.

Jane Foley, senior currency strategist at Rabobank International in London stated the following: “The leader of Japan’s opposition is coming down quite heavily, saying what he would like the Bank of Japan to do in terms of easing and that’s pressuring the yen. The U.K. retail sales tie in with a gloomy outlook for the U.K. economy and that Read more »


The euro currency falls to a two-month low level against the greenback and the Swiss franc while the European finance ministers try to decide how to offer additional financial help to Greece, controlling the demand for the common currency of the region. Euro currency trimmed its drop level after the German newspaper Bild-Zeitung reported that the combining financial measures for Greece were intended into a single package. The European zone offered Greece another two extra years in order to lower its budget deficit, promising to stop the financial gaps that might appear. The pound reached to a four-day level of decline against the dollar after the data showed the inflation rate of UK has quickened in the previous month.

Lee Hardman, currency strategist at Bank of Tokyo-Mitsubishi stated the following referring to the situation of Greece: “Greece remains unsustainable and a credible solution needs to be found. There’s a press report from Germany stating that Greece is to Read more »


The rally between the euro and the dollar reached a two-month low level as the European Central Bank is ready to announce the interest-rate decision after Mario Draghi stated that the crisis has started to affect Germany. Euro was the single currency weakened versus all of the 16 counterparts after Market News International declared that the ECB is unwilling to purchase the government bonds after a decline in the lending costs. The yen improved its position due to the fact that investors sought assets among the re-elected president Obama is trying to prevent the fiscal cliff. Also, the British pound rose against the euro currency as the Bank of England restrained to elevate the asset-purchase program.

Euro dropped 0.3% to $1.2734 reaching the lowest level since the 7th of September. Lee Hardman, the currency strategist at the Bank of Tokyo declared that the following: Draghi’s comments may have encouraged speculation that the ECB may present a more dovish Read more »


The euro became loose near a two-month low versus the greenback on Tuesday and with an outlook clouded by the Parliament of Greece that voted the steps of austerity needed to improve the situation of the country. Traders stated that the market was in a standby mode regarding the US presidential elections on Tuesday. Opinion polls concerning the elections stated the fact that the challenge between Barack Obama and Mitt Romney is very close, but president Obama has a small advantage in various states. The euro currency eased with 0.1% to $1.2788 and remained to a level of $1.2767 set by the trading platform of EBS and reached the lowest level in the last two months.

The latest decline forced the euro out of the $1.2800/3200 trading level gained since the middle of September. The support has become around $1.2741, a level that represented approximately 38% reversal of the euro’s July to September rally. The Parliament of Read more »


Thursday, the yen managed to reach a four-month low level on the Japanese importers selling the currency. The rest of the major currencies remained steady as investors looked to crucial events in the USA such as the job reports on Friday and the elections on Tuesday. The greenback increased its level to as high as 80.13 yen and recovered the lost territory after the easing of the Bank of Japan on Tuesday and going to a four-month high level of 80.38 on last Friday.

The dollar rose to as high as 80.13 yen, fully recovering the lost ground on disappointment after the BOJ’s easing on Tuesday, and inching towards the four-month high of 80.38 hit last Friday. It last stood at 80.07 yen, up 0.4 percent on the day. Minori Uchida, chief FX strategist at the Bank of Tokyo-Mitsubishi UFJ stated the following: “Those who just trade on news headlines sold dollar/yen after the BOJ. But the Read more »


The yen succeeded to strengthen its position against the dollar and has reached the strongest level in the last week as the second round of easing of the Bank of Japan disappointed investors. The Bank of Japan stated after the policy meeting today that it developed the asset-purchase program by approximately from 11 trillion yen to 66 trillion yen. The demand for the yen currency as a refuge asset increased substantially as the tropical storm Sandy ravaged the entire American Northeast coast. Also, the pound increased against the dollar before a report forecast showed that the UK retail sales rose.

Head of the Japan foreign exchange research at Nomura Securities stated that the 10 trillion increase of the yen seems as a minimum expansion and that the failure to reach 15 trillion is a high disappointment for markets. Also, he declared that the yen is being purchased as a result of the damages created by Sandy. The Read more »


The Dow Jones FXCM Dollar Index has suffered a serious influence in the last five days. Risk trends have shown a little progress in the past session and the Fed announced that its MBS purchases will not increase. When analyzing the individual performances it can be observed the reasons why the dollar declined and why the immediate results are not to see the EUROUSD surge higher than 1.3000. The Dollar Index is composed of a balanced weighting of four different counterparts of the currency. The Dollar has managed to put on a modest gain on the day for the EUROUSD standards. This leads to the conclusion to a strengthened position of the dollar instead of a weakened one.

The fundamental care for the dollar refers to the general risk trends. The market shows extremely low rates and the near-zero yield on the US benchmark rates. The Forex-based FX VIX Index has a low level and it is unlikely Read more »




 

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