Posts Tagged: CAD

The European sovereign debt crisis continues to have major effects upon the trading market, causing the evolution of most of the major currency to fluctuate a lot based on the fluctuations of the trading sentiment.

The most affected currency is probably the Euro, which has finished another bad week. Friday, the Euro rallied a little, but did not have much strength. This rally has been the result of the European Union summit which has brought European politicians together in a new attempt of trying to find solutions to the sovereign debt crisis. This summit has actually brought some solid decisions such as the leverage for the European Financial Stability Facility which “will be rapidly deployed” and implemented by the month of July 2012 by the means of €200 billion which will be provided by the International Monetary Fund. This news has caused the enthusiasm of traders, but the currency did not manage to sustain a long rally. 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 problems in Europe continue to get worse as now the crisis is not only affecting the financial sector, but also the political one. The European Union seems to be more divided then ever after the decision of quitting of the Greek Prime Minister which has triggered other chain reactions, the most important of which being that of the resignation of Silvio Berlusconi, the Italian Prime Minister. Berlusconi was in no mood to resign, but it seems that the result of the elections indicated that he is not wanted by the people, thing which actually means that he now has to. Based on this fact, the trading market is now under the effects of a new wave of risk aversion which has caused high yielding currencies to fall, affecting thus the Great Britain Pound and the Canadian Dollar.

The Great Britain Pound has been struggling today despite of the gains registered yesterday. Equities have been weighting on the Read more »

There are a lot of concerns dominating the trading market at the moment and, as we have seen during the previous days, there are some currencies which have lost territory due to these concerns. But, despite of the fact that the situation in Europe continues to remain just partially solved, it seems like traders are experiencing a cautious optimism which has led to the growth of some of the most important currencies around the world.

The Japanese Yen is one of the currencies which grew today based on the fact that investors are seeking for safety as a result of the concerns related to the Greek bailout and to the spreading of the debt crisis to other European countries such as Italy, Spain and Portugal. Moreover, traders feel even more concerned due to the referendum which is expected to take place in Greece, which could have a negative outlook, leading thus to the default of the Greek Read more »

The end of the Group of Twenty summit has had a powerful impact upon the trading sentiment, causing the evolution of some currencies to change. This G-20 summit was supposed to find solutions for the sovereign debt crisis in the Eurozone and for the banks in the region. Up to now, the only result we know concerning this summit is that the members of the 20 European countries have refused the idea of a forceful restructuring of the Greek debt. It seems that the plans made by politicians did not manage to persuade investors of this thought. Moreover, the market has been affected by the decrease of the European manufacturing and services industries.

The result of this still blur outcome is that of influencing the trading sentiment, causing the risk appetite to grow once more. This has had a negative impact upon the US Dollar, which started to fall against its major counterparts as the safety need Read more »

It seems that there have been some misunderstandings between France and Germany on the matter of the EFSF today, which have caused some problems concerning the sovereign debt crisis solutions. The European leaders have stated, at the end of the day, that these discussions have been solved and that the two countries are now in full agreement. The basis of the discussions has been the measures which should be taken in order to solve the bailout issue in Europe. The bailout facility is absolutely necessary in order to prevent the sovereign debt crisis from spreading. The situation has been made worse and the concerns grew in regard to the recent downgrade of Spain’s credit rating.

The recent news regarding the disagreements between the French and the German representatives have caused traders to get scared and to believe that there are chances for the European leaders not to achieve a solution this time either. This piece of news Read more »

Despite of the global economic crisis and of the numerous problems with which economies are confronted at the moment, the Euro and the Canadian Dollar have managed to finish the week incredibly well.

The Euro has registered this week the biggest gains in the last two years. This is due to the optimism of the Forex traders related to the ability of the European officials of solving the problems with which the European Union is confronted at the present moment. As a matter of fact, this new wave of optimism has had a positive effect upon the currency in the last several weeks, not just now. This is mainly related to the promise made by the German Chancellor, Angela Merkel, and the French President, Nicolas Sarkozy, related to the fact that they are going to find a solution in order to solve the sovereign debt crisis in the European Union. This promise has had a positive effect Read more »

The worsening of the global economic crisis has led to the decrease of several currencies which fell against some of their major counterparts, especially the US Dollar due to the increase of the traders’ concerns about the global economic environment.

The New Zealand Dollar decreased after the decision taken by Standard & Poor’s and Fitch Ratings of downgrading the sovereign credit rating of the country. This has caused the nation’s currency to fall against some of its major counterparts, especially the US Dollar, against which the New Zealand Dollar has reached the lowest level in six months. The currency also decreased against the Euro, the Australian Dollar and the Japanese Yen, but maintained almost the same value against the Great Britain Pound.

This comes after the decision of Standard & Poor’s and of Fitch Ratings of downgrading the country’s credit rating from AA+ to AA for foreign currency and from AAA to AA+ for the local 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 »