Posts Tagged: Dollar

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 »

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 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 »

The yen weakened 80 against the dollar for the first time in the last three months. There are signs that the yen is close to contraction as fanned speculation that the Bank of Japan will bring more impulse. The dollar has managed to maintain a gain of 8 days against the yen, which is considered the longest streak in the last seven years. The US provided two-year notes that rose to the highest level since June against the Japanese peers that attracted money to the dollar-based assets. The Australian dollar had 3 days of losses before the data forecast showed that the level of inflation was the slowest in 13 years, which lead to a cut of the borrowing costs provided by the Reserve Bank.

The Japanese lawmakers apply pressure to the Bank of Japan in order to loosen the monetary policy stated Derek Mumford, the Director of Rochford Capital, a currency risk-management company. Mumford also declared that Read more »

Today, the euro managed to rise against the US dollar and against other important currencies after the Spain reports considered requesting a line of credit after the credit line from the bailout fund of Europe. The currency climbed to $1.2973 in Tokyo and up to $1.2953 in North America.

The European Council President Herman Van Rompuy has created a plan in order to improve the situation in the euro zone. Gabriele Steinhauser explains how to euro zone plan isn’t have and how it can put the neighboring on a serious edge. The Financial Times stated the fact that the country was prepared to make a formal request, but the announcement was delayed due to the fact that it could affect other euro-zone countries such as Italy.

Michael Turner, the currency strategist at RBC Capital Markets stated the fact that if the story is true and the timing is right, the euro currency can gain further support. Also, Stan Read more »

Asian Stock markets opened higher today. NIKKEI started the day at 10,096.89, previous close was 10,010.39. HANG SENG opened at 22,251.02, previous close was 21,987.29.

The markets have reacted positively after European Union leaders reached a new deal for Greece and other debt plagued eurozone countries. Another factor supporting the stock markets is strong Morgan Stanley results. As fear of contagion from Greece will engulf Spain and Italy fades away, investors are still cautious. Yesterday, S&P rating services reminded that the United States may lose its AAA credit rating if the U.S. lawmakers fail to raise the country’s debt limit before the deadline. Even though investors bet the U.S. will maintain its debt payments and keep its credit rating, the Japanese yen’s strength against the dollar is something that they can not ignore.

Asian session is going flat and calm today. EUR rallied to a two week high against USD yesterday after EU leaders agreed on Read more »

Asian Stock markets opened slightly higher today. NIKKEI started the day at 10,019.94, previous close was 10,005.90. HANG SENG opened at 22,054.42, previous close was 22,003.69. Strong gains made the day before on hopes that the EU leaders will come up with some solution, which doesn’t involve postponing, to solve the fiscal crisis. However, it seems that upside is limited as investors are still concerned about the U.S. debt limit. Deputy General Manager at Cosmo Securities, Mitsuo Shimizu said “Most investors are stuck to the sidelines today ahead of the EU summit and as nothing has been decided yet on the U.S. debt ceiling issue”. Even though President Obama backed a deficit reduction plan released by a bipartisan group of senators yesterday, there are still plenty of uncertainties over the U.S. debt ceiling talks. In addition, the U.S. lawmakers have less than 2 weeks to raise the country’s debt ceiling.

Asian session started the day with USD weakening Read more »