Posts Tagged: AUD

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 situation in the European Union seems to be getting worse every single day now. The yield on Spanish bonds increased during today’s auction. Moreover, the Stoxx Europe 600 Index of shares fell by 0.8 percent, this being the third day in a row that the index is actually decreasing. Moreover, Fitch rating has announced that the spreading of the European sovereign debt crisis is likely to have a negative impact upon the US banks, adding the following: “Unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen.” This has caused the Euro to fall, but, not as expected, this has also generated some risk appetite which has been quite helpful for the Australian and the Canadian Dollar. This may actually be due to the fact that traders may have had enough about the situation in Europe and have decided to turn towards Read more »

The concerns related to the sovereign debt crisis in Europe continue to have a very high level, causing the market sentiment to remain negative. This has a very powerful impact upon the trading market, as safe-haven currencies are the only ones to grow on risk aversion. Meanwhile, all the higher yielding currencies are falling.

This is actually the case of the Canadian Dollar, which fell today against some of its major counterparts, although the country’s fundamentals were not all bad. This decline has been caused by the risk aversion which finds its roots in the fall of the bonds in Europe. The borrowing costs of French bonds declined today, reaching a new record low, while the yield on the Spanish securities grew a lot at an auction. However, the Canadian fundamentals are not all bad. The manufacturing field grew by 2.6 percent, reaching the level of $49.2 billion during the month of September. This comes after the Read more »

The effects of the economic problems around the world can be seen in the latest evolution of the Australian Dollar. The problems around the world have caused all economies to weaken due to the decrease in demand and to the concerns of investors. The Australian Dollar has ended a week of losses against most of its major counterparts, especially the US Dollar and the Euro. This is both due to the negative fundamentals Australia is faced with at the moment and to the decision taken by the Australian Central Bank of cutting the value of the interest rates.

It is important to know that the Australian Dollar is very much dependant on the way in which commodities perform due to the fact that Australia’s economy is based especially on exports. The fact is that commodities are under a lot of pressure at the moment due to numerous negative factors around the world. One of the main issues is Read more »

As the situation in the European Union continues to be tensed, the trading market has a powerful reaction as the risk aversion has triggered a new wave of changes on the market. The safe-havens seem to be favored and the currencies around the world gain based on different speculations related to the evolution of the sovereign debt crisis.

The Euro has managed to regain a little of yesterday’s losses today on the speculation that the policy makers are to increase the rescue fund. The Guardian announced that Germany and France agreed to increase the European Financial Stability Facility from the level of €440 billion ($607 billion) to the one €2 trillion. This change is supposed to take place before the G-20 summit which is to take place this weekend. The Stoxx Europe 600 Index grew by 0.8 percent.

Moody’s has announced the downgrade of another credit rating, that of Spain. This has generated a wave of Read more »

The global economic crisis continues to have great effects upon the trading market, influencing even the most powerful currencies around the world. Despite the few days of growths, most of the important currencies started to fall today as a result of the concerns related to the global economic crisis which continues to affect most of the world’s economies.

The Euro is one of the currencies which registered losses during today’s trading, especially against the Japanese Yen, against which the European currency fell till the point of reaching a 10-year low. The currency also decreased against the US Dollar and the Great Britain Pound. This negative evolution has been triggered by the news according to which Greece is not to reach its deficit target this year. The release of this news by the Greek officials, along with the discussions related to the possibility of more bailouts has brought up the subject of default once more. A Greek default Read more »

Even though the last few days have been quite loose on the risk appetite, it seems that the sentiment reappeared today, causing the Euro to grow based on the fact that investors are looking for better yields. The good news all the Forex traders were expecting started to show up, starting to change things around and reinforcing the confidence of the traders in the Euro.

At the moment, the Euro finds support especially in the news according to which the German parliament has voted the Euro bailout fund. At the moment, a little support from the EFSF would be the solution which might just put an end to the sovereign debt crisis and reestablish a safe economic situation in Europe. Based on this news, the Euro managed to grow even more against the US Dollar, despite the fact that there continue to be concerns on whether or not the sovereign debt crisis is to be resolved for Read more »

Despite the fact that the European debt crisis seems to get worse than usual, the European currency managed to grow a little based on the assumption that the sovereign debt crisis is to be contained. This is the reaction of the forex traders to the discussions had by the European leaders. There are numerous traders who have confidence in the European leaders and who think that all these problems are going to be solved.

At the moment, it does not seem to be any plans as to expand the EFSF, but the participants to the trading market are considering that the European leaders are to find a solution to the sovereign debt crisis and that this solution is to be found before the crisis brings down Italy, Spain and possibly France as well. It seems that, at this moment, there are numerous efforts made in order to require recapitalization for banks. There is also a great focus Read more »

The trading market has evolved in a rather unexpected way today, due to the fact that the USD started to grow against most of its major counterparts, managing to reach such growth levels as to cause the AUD to fall below parity. This comes as a reaction of the Federal Reserve Bank’s decision of purchasing bonds, which has immediately increased the interest for the US Dollar.

The US Dollar started to widely grow after the moment when the Federal Reserve Bank announced its decision of purchasing long-term securities. This decision caused an instant demand for safe-haven currencies, including the US Dollar, which completely took advantage by the situation. The Federal Open Market Committee decided to maintain the federal funds rate at the value of 0 to 0.25 percent. In its statement, the FOMC said the following: “The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years Read more »

The Canadian Dollar has lost territory today as the International Monetary Fund decided to cut its growth forecast for Canada. This has determined investors to be less interested in growth-related currencies. The IMF has revised its opinion concerning the growth estimation for Canada, decreasing from the 2.9 percent forecast in June to only 2.1 percent. This outlook has become worse due to the slower global economic growth and to the faltering economic recovery of the United States, which is the most important trading partner of Canada. Also, the downgrade of the Italian credit rating by Standard & Poor’s has had a negative influence upon traders. Mark Carney, the Governor of the Bank of Canada, was concerned about the economy of the United States, declaring the following: “The United States is in the midst of the weakest recovery since the Great Depression, and the bank does not expect that to change at any time soon.” He has also brought Read more »