Posts Tagged: global economic crisis

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 »

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 »

The previous trading week has been quite bad for lots of the economies around the world due to the fact that the global economic crisis has become stronger once more, weakening the global economies. This is especially due to the fact that Europe is confronted with lots of tensions as the situation in Greece and in Italy has become worse. As well, the fact that the Fed decided to purchase more bonds indicates that, on long-term, the US economy is not quite stable. As well, the Australian Dollar fell on bad economic signs, decreasing below the parity level against the US Dollar. All these economic developments have caused traders to worry about the market as there are clear signs of weaken global economy. This has generated a new wave of risk aversion and has directed traders towards safe-haven currencies once more. The Japanese Yen is one of the few currencies which took advantage of this situation.

Despite the Read more »

The trading session today turned out to be favoring the risk appetite currencies, causing the safe-havens to fall. This is related to the speech held by the Chairman of the Federal Reserve, Ben Bernanke, which insisted upon the fact that there are mo additional policy measures to be taken given the fact that he and the other policy makers continue to be confident in what it concerns the evolution of the US economy on mid- and long-term. This has generated an increased appetite for risk, which has been seen in the trading session on Monday.

Traders to tend to believe that additional stimulus could be in the pipeline, but the moment has not yet come. Nonetheless, the speech held by Bernanke suggested that there are chances for new policy measure to be taken in the situation in which they would be necessary, and these comments seem to have persuaded traders. However, the reactions to this statement, on behalf Read more »