Posts Tagged: NZD

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 »

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 been, once more, taken by surprise today, with lots of currencies evolving in a rather unexpected way. The global financial situation is affecting again the trading market, causing large changes from one day to another due to economic concerns.

When it comes to the Eurozone, we can notice that the Euro has once again lost territory in front of its major counterparts. This is due to the fact that the optimism which seemed to dominate the market in the last period of time, generated by the speculation according to which China will buy Italy’s debt has quickly waned away. This has left the Euro without support, causing it to fail after the moment when Italy auctioned its debt. Moreover, there is a new skepticism which takes over the trading market at the moment, which implies that not even China is going to be able to prevent the spreading of the debt crisis to Read more »

Just when we thought that things will get better in the Eurozone, concerns started to grow again. This is due to the fact that the elections in Germany went otherwise than expected, Angela Merkel no longer being elected, which means that there are high chances for the new elected party not to sustain the bailout system anymore. Moreover, the problems in Greece seem to intensify, making the situation worse. Also, all the macroeconomic reports related to the UK showed disappointing figures, while the Swiss National bank took the decision of imposing a fix exchange rate for the EUR/CHF pair of 1.20 in order to stop the overvaluation of the nation’s currency. All these facts resulted in imposing a tensed mood in Europe, making traders fell risk aversion once more. And this has had lots of influences on the other currencies in the world, such as the New Zealand Dollar or the South African Rand, which have experienced losses Read more »

Today has been a good trading day for the New Zealand Dollar which managed to grow against most of its major counterparts based on the fact that there is speculation on the market that the US Federal Reserve is going to take some additional measures in order to sustain the faltering nation’s economy in the 3rd quarter of the year.

It is on the 26th of August that Ben S. Bernanke, the Chairman of the Federal Reserve, is expected to speak in Jackson Hole, Wyoming. It has been in the same location that last year he announced the second round of quantitative easing. Based on these facts, there are some traders who are now speculating that this year we will have the chance of seeing a third round of stimulus proposed by the Federal Reserve.

The manager of foreign bond department at Mizuho securities Co., Kengo Suzuki, stated the following: “The second round of quantitative easing was Read more »

As the situation on the trading market down not promise to stabilize soon as concerns related to the fact that the European leaders are not going to be able to reach an agreement concerning the measures that need to be taken in order to solve the problems which have occurred due to the sovereign debt crisis, the safe currencies around the world have scored new gains against their major counterparts. The latest news points out to the fact that the European Union’s leaders are to meet at Brussels on the 21st of July in order to discuss some more about the financial situation of the Eurozone. The European Central Bank does not agree with the measure of restructuring the Greek debt and its officials agreed on lending the necessary amount of money to Greece despite the measurement taken by the rating agencies of downgrading Greece’s credit rating to the junk level. There are some market analysts who believe Read more »

Asian Stock markets opened slightly lower today. NIKKEI started the day at 9,919.59, previous close was 9,936.12. HANG SENG opened at 21,874.43, previous close was 21,940.20. The stock markets are still under pressure due to ongoing concerns over eurozone fiscal problems and U.S. debt woes. Despite the fact that the outlook of global economy is a bit gloomy, analysts say that the majority of Tokyo shares are still trading at or below their book value. Currency strategist at Tachibana Securities, Kenichi Hirano said “While there are many external factors that are dampening the mood, Japanese stocks are attracting foreign buying with their cheap valuations”. Analysts say that trading may be sluggish ahead of U.S. economic indicators such as the consumer price index, industrial production and a stress test of European banks due later today. Investors are also focusing on corporate earnings. Citigroup is going to release its quarterly results today.

U.S. debt ceiling discussions and rating services’ latest Read more »

Asian Stock markets opened lower today. NIKKEI started the day at 9,929.18, previous close was 9,963.14. HANG SENG opened at 21,900.62, previous close was 21,926.88. Today we see the impacts of Moody’s statement and FED Chairman Ben Bernanke’s speech yesterday. Investors are reducing their positions as concerns about U.S. debt ceiling problems and eurozone debt worries increase. Fund manager at IG Investment, Tim Leung said “There’s uncertainty and confusion about whether we are going to see executives and legislators settle on the debt limit and the Moody’s review suggests that there may be a problem if they cannot reach a deal. There is a definite timeline for the U.S. debt ceiling discussion and also with financing the maturing papers from Italy, so both are risks in people’s mind”.

Asian session started the day with USD weakness. CHF, JPY and gold are making new highs. As the current situation is making investors more cautious, we see that the demand Read more »

The New Zealand Dollar managed to rise today against most of its major counterparts, especially the US Dollar, against which, the New Zealand currency has recorded a new all-time high. Nonetheless, the NZD managed to gain territory against all the other counterparts as well based on the increase value of the business confidence level.

The reports released today point out to the fact that New Zealand is widely improving its situation especially in the fields of business confidence and in that of building approval which has been advanced last month. These figures have improved in the month of June and the results are now showing in the value of the nation’s currency. The increased level of business confidence from the report of June also indicates a contrary decline in the activity outlook. But, the most important measure for the economic development in New Zealand, which has now hit a nine month high, has managed to add and increase Read more »