Forex Hot News Updates

Dollar Suffers Another Hit as China Posts Industrial Growth

noreply@blogger.com (Forex News) — Fri, 11 Sep 2009 20:50:00 +0000

The dollar had a week of extremely negative performance hitting several record lows versus most of the main 16 currencies as demand for yield and investors’ confidence rose worldwide, this time, fueled by two reports in China that added to the already growing optimism in trading markets.

Today in Europe, the dollar extended its losses versus the euro as countries like Germany and France are raising attractiveness for assets in the region, as this countries are posting the quickest and most favorable news regarding economic improvements. The British pound also posted significant gains versus the U.S. currency hitting a one month high after producer prices in the United Kingdom climbed for a sixth straight month, suggesting that one of the countries that most suffered with the credit crunch in Europe may be already in a process of recovery, which upgraded the pound’s outlook.

Economists analyze with a certain degree of pessimism the current situation for the U.S. currency. The dollar has been hit massively this week by an outflow of capital towards higher-yielding options, and the sentiment regarding the greenback could not be worse, as most of analysts suggest that the dollar downtrend may proceed further to an undetermined period of time and level, as long as the economic recovery continues.

EUR/USD traded at 1.4591 as of 11:34 GMT from a previous rate of 1.4555 in the intraday comparison. GBP/USD touched 1.6735 from 1.6513.

If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Australian Dollar Rebounds on Chinese Data

noreply@blogger.com (Forex News) — Fri, 11 Sep 2009 20:50:00 +0000

The Australian dollar was affected yesterday by a series of negative domestic reports that halted a rally which set the currency to a one year high versus the greenback, but today, after favorable reports coming from Asia, the Aussie managed to reestablish its previous winning trend.

The Australian currency climbed today versus several lower-yielding trading options, as stocks surged in Asia benefiting from two reports in China which indicated a more-than-expected rise in the industrial output and increased new lending figures, suggesting that one of the main trading partners of the South Pacific region is recovering from the current crisis. The New Zealand dollar, normally associated to the Aussie’s movements since several factors affect both countries’ currencies, also climbed further, reaching the ninth week in a row of gains versus the greenback, raising concerns in the Reserve Bank of New Zealand that a strong currency may affect the country’s recovery.

According to analysts, the recovery in China is more than essential for Australia’s economy growth, since the Asian country is the main destination for Australian exports. After yesterday’s negative reports that led to speculations regarding a delay in interest rate hikes, the Aussie is once again bullish, indicating that optimism in the region remains strong.

AUD/USD traded at 0.8643 as of 10:56 GMT after bottoming at 0.8555 yesterday. EUR/AUD traded at 1.6896 from 1.6999.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Pound Climbs on Bank of England Strategic Changes

noreply@blogger.com (Forex News) — Thu, 10 Sep 2009 18:54:00 +0000

The pound reached the highest level in almost a month versus the U.S. dollar and gained versus the euro after Bank of England statements regarding its strategy to stimulate the faltering British economy revived investors’ confidence in the United Kingdom’s currency.

After the Bank of England officials’ declarations indicating that the asset-purchasing program will not be extended further, as it has been previously, the confidence towards the U.K.’s currency improved, as interest rates in the country also remained unchanged, helping traders to be more attracted to inject capital in the British Isles. The pound rose versus the euro, rebounding from a one-week low, and higher-yielding currencies also declined as a rally in stocks that lasted five days was halted as concerns regarding the Chinese economic recovery emerged.

Bank of England’s strategic change was not a consensus among analysts, since a significant amount of them bet on the extension of the asset-purchase program, which would be definitely weighing negatively on the pound’s outlook. Currently, the expectations towards an economic recovery in the U.K. are more optimist, since Eurozone countries like Germany, one of the main immediate U.K.’s trading partners is also rebounding, fact which could accelerate the process of recovering for the Northern European nation.

GBP/USD traded at 1.6623 as of 12:28 GMT from a previous rate of 1.6529 yesterday. EUR/GBP traded at 0.8755 from 0.8806.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Australian Dollar Slides on Job Figures

noreply@blogger.com (Forex News) — Thu, 10 Sep 2009 18:54:00 +0000

As unemployment surged in the South Pacific nation of Australia, speculations that interest rates will be hiked before the end of the year decreased, making the Aussie to post its first decline this week versus most of the main traded currencies.

Today a report in Australia indicated job losses that came at almost a double rate than what forecasts expected, influencing the South Pacific currency further down after negative reports yesterday that made the currency to drop from a one-year high versus the greenback, as retail sales and home loan approvals declined in the country. Even if several negative news stopped the Aussie’s rally this week, it still remains the best performing currency among the 16 most traded, followed by the Brazilian real in second and its counterpart, the New Zealand dollar, that was also affected by a bearish market sentiment today towards the South Pacific region.

After this week’s negative data for the Aussie, analysts have reached a consensus that interest rates in Australia are unlikely to be hiked before December, fact which is weighing on the Australian currency performance this Thursday, adding to the already pessimist wave of negative reports that unexpectedly downgraded the outlook for South Pacific currencies.

AUD/USD traded at 0.8558 as of 10:37 GMT from 0.8617 in the intraday comparison. AUD/CAD traded at 0.9288 from 0.9312.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Polish Zloty Declines After Bond Sale Fiasco

noreply@blogger.com (Forex News) — Wed, 09 Sep 2009 18:53:00 +0000

The Polish currency declined today versus the euro after a Polish central bank 5 bond sale that ended with just slightly more than half of the bond offered sold, suggesting that attractiveness and confidence towards zloty-priced assets remains rather mediocre.

After the government announced that the budget deficit in the country will double next year, the first bond auction in the country did not reflected in a significant number of sales, suggesting that trader’s confidence in the Polish economy remain low. The National Bank of Poland expects a better performance in the following auctions the stabilize the nation’s financial accounts.

EUR/PLN traded at 4.1151 as of 17:46 GMT from an opening rate of 4.0986.

If you want to comment on the Polish zloty’s recent action or have any questions regarding this currency, please, feel free to reply below.

Canadian Dollar Remains High Before Bank Declarations

noreply@blogger.com (Forex News) — Wed, 09 Sep 2009 18:52:00 +0000

The Canadian currency, which has been benefiting together with several other currencies linked to commodities and equities performances, continued at a high level before a central bank meeting today that may indicate concerns with the current loonie’s rally.

After being traded near a one month high yesterday, the Canadian currency remained bullish as house starts surged in the country, suggesting that the North American nation may soon find its way out of recession. Tomorrow, Bank of Canada officials are due to meet, and comments reaffirming the problems a strong currency can bring may affect the current loonie’s rally.

USD/CAD traded at 1.0784 after touching a strong level of 1.0672 yesterday.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Retail Sales Report Affects Australian Dollar Performance

noreply@blogger.com (Forex News) — Wed, 09 Sep 2009 18:52:00 +0000

The Australian currency, which touched the highest level in one years versus its U.S. counterpart yesterday, fell as domestic reports indicated today that the country’s economic health is not as good as perceived by investors, mainly in the sales and real estate sectors.

After the Australian government published a report indicating that home loan approvals declined for the first time since the end of last year, the Aussie declined versus virtually all 16 main traded currencies, mainly versus its New Zealand counterpart as speculations indicate that the Reserve Bank of New Zealand will not cut further its national benchmark interest rate, raising attractiveness for the kiwi currency in the South Pacific and Asian regions. Australian retail sales also declined in August, making traders to be less confident towards interest rate hikes in the country before the end of the year.

The retail sales can be understood by traders as a reason for the Reserve Bank of Australia to postpone any projects of raising interest rates in the country, which is weighing negatively on the Aussie’s outlook. Even if today was rather negative for the Australian dollar, the overall forecast for the Aussie still remains very positive, as the country is proving itself more capable of recovering than most of the other world economic regions.

AUD/USD traded at 0.8595 as of 11:01 GMT after being traded at 0.8661 yesterday. AUD/JPY traded at 79.54 from 79.99.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Dollar Rebounds as Stocks Fall

noreply@blogger.com (Forex News) — Wed, 09 Sep 2009 18:51:00 +0000

After a sharp decline yesterday due to increased risk appetite in stocks markets globally, the dollar rebounded today as speculations led traders to understand that the current gains in equities may not reflect the real potential of world economic and corporate growth.

The U.S. dollar rebounded slightly after being traded at the lowest level versus the European common currency yesterday this year, as a report showed that consumer prices in the bloc’s wealthiest country, Germany, declined in August in the yearly comparison, refreshing investors that the economic situation in Europe is still not as favorable as markets’ sentiment towards it. High-yielding currencies linked to commodities like the South African rand and the Australian dollar also declined after the price of metals declined worldwide. The greenback also gained versus Sweden’s krona, country which had its long term debt ratings downgraded by Moody’s Investors Service.

Two main reasons are behind the dollar’s rebound today. Firstly, a corrective movement can be perceived as traders profit from yesterday’s extensive rally in high-yielding currencies, and the current economic sentiment is not as optimist as it was some months ago, when a fast paced economic rebound was a consensus among traders for the future, proved false as still many economic regions around the world face a series of different problems.

EUR/USD traded at 1.4494 as of 9:58 GMT from a previous rate of 1.4433 yesterday. USD/CAD traded at 1.0806 after hitting 1.0690 yesterday.

If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Mexican Peso Extends Gains on Optimism

noreply@blogger.com (Forex News) — Tue, 08 Sep 2009 18:50:00 +0000

The Mexican peso had the fifth consecutive gains versus the U.S. dollar as optimism is helping stocks to climb globally, damping demand for the greenback and attracting investors to emergent markets like Mexico.

Mexico is along with Brazil, South Africa and others, one of the nations that witnessed a climb in their currencies’ value this week as renewed risk appetite initiated an exodus of capital from currencies like the U.S. dollar and the Japanese yen, as traders opted mainly to inject many into emergent markets, attempting to achieve higher profit margins in riskier territories.

USD/MXN traded at 13.355 as of 18:12 GMT from an opening price of 13.366.

If you want to comment on the Mexican peso’s recent action or have any questions regarding this currency, please, feel free to reply below.

Brazilian Real Benefits From Stocks Climb

noreply@blogger.com (Forex News) — Tue, 08 Sep 2009 18:50:00 +0000

The Brazilian real hit today a 3-week high versus the U.S. dollar as optimism forced up commodities and equities rates, bringing investors towards riskier assets in emergent markets like those of South America.

Several events occurred this week bringing risk appetite back among traders, as car sales in China expanded in August and commodities climbed, favoring Brazil’s currency, since the South American nation has one of the main destinations for its metallic commodities in the most populous country in Asia. The Brazilian real reached an almost one month high versus the greenback, which has been affected by lack of attractiveness for safety.

USD/BRL traded at 1.8248 as of 20:13 GMT from an opening rate of 1.8425 today.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Pound Climbs on U.K. Manufacturing

noreply@blogger.com (Forex News) — Tue, 08 Sep 2009 18:49:00 +0000

The pound climbed today versus most of the 6 main traded currencies as the situation starts to become more positive for the British economy, pushing stocks up in London and consequently attracting international inflows of capitals to the United Kingdom.

After U.K. manufacturing output had the highest climb in 18 months today in a report published by the Office for National Statistics, the pound rose sharply, gaining virtually against all 16 main traded currencies worldwide, rebounding from a rather weak performance last week, when a wave of pessimism still affected pound-priced assets attractiveness. Stocks in the U.K. rose to the highest level since October last year, when the credit crunch plunged the British Isles into a intense sequence of losses in multiple bearish market weeks. U.K. manufacturing went much beyond forecasts, which suggested a 0.3 percent increase for the past month, but the actual report indicated an amazing 0.9 jump, being this surprising figures the main vector to push the pound up today in foreign-exchange markets.

According to many analysts, the pound remains undervalued, still suffering the consequences of the credit crunch that caused the biggest crisis in the country since the Second World War, but if favorable news still follow, the pound may find support for a big uptrend in the following months.

GBP/USD traded at 1.6554 as of 12:41 GMT from a previous rate of 1.6382 yesterday. EUR/GBP traded at 0.8744 after being traded at 0.8777 before the report was published.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

World Economic Rebound Forces Dollar Down

noreply@blogger.com (Forex News) — Tue, 08 Sep 2009 18:48:00 +0000

The dollar is losing this week versus important major currencies like the euro and the pound as renewed optimism towards an economic recovery damped demand for the safety profile of the United States currency, as investors moved their bets to riskier assets.

A combination of bullish stock markets and speculations regarding an upcoming credit report in the United States affected the dollar negatively, as at the same time that investors seek higher yielding options as stocks grow, the U.S. credit report to be released today is likely to show a sharp fall, which is decreasing attractiveness for the greenback. The Japanese yen was one the biggest winners versus the greenback today as the government is likely to extend its measures to stimulate the economy, bringing renewed confidence towards the Japanese economy, which posted today a report indicating a fall in the numbers of bankruptcies for the first time in three monhts.

The bullish sentiment in equities markets is weighing negatively for the dollar, as being the main global reserve currency in the world, its safety profile attractiveness is decreasing thanks to a higher level of risk aversion among traders. Currencies like the yen and the pound still have room to climb versus the U.S. dollar, but its unlikely that the greenback will lose sharply, at least in the short-term.

USD/JPY traded at 92.31 as of 9:06 GMT from a previous rate of 93.17 in the intraday comparison. EUR/USD traded at 1.4418 from 1.4344.

If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Euro Climbs on Growing Optimism

noreply@blogger.com (Forex News) — Mon, 07 Sep 2009 18:48:00 +0000

The euro climbed versus a number of currencies in the start of this week as investors’ confidence rose in the region, providing support for speculations regarding the end of the recession in the countries using the European common currency.

This week started with pending to the side of risk appetite continuing market trends perceived in the end of last week, when the euro climbed fueled by renewed attractiveness as countries like Germany indicate significant positive economic improvements, suggesting that the recession may end sooner than expected in the Eurozone. Today, the euro is also gaining on speculations that a report regarding factory orders in Germany will show an expansion in July, if confirmed, it will be the fifth consecutive month with positive figures in this sector. Currencies like the yen and the dollar lost the most versus the euro, as traders leave safety attracted by yielding in emergent markets.

The euro is likely to have a positive week, mainly versus the yen, which could be overpriced after last week’s rally, but it will be difficult for the European common currency to climb very sharply, considering that even if the region is publishing several positive reports, most of the bloc’s members still face recession and complications in different sectors of the economy.

EUR/USD traded at 1.4342 as of 9:00 GMT from a previous rate of 1.4303 when markets opened yesterday. EUR/JPY climbed from 133.62 from 132.94.

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Australian Dollar Rises on G-20 Economic Stimulus

noreply@blogger.com (Forex News) — Mon, 07 Sep 2009 18:47:00 +0000

The Australian currency is trading near the highest levels in 2009 after the Group of 20 most influential countries in the world affirmed that stimulus will remain to rescue the global economy, attracting investors to higher-yielding options, like those of the South Pacific region.

The end of last week was very supportive for the Aussie to climb as the construction industry shrank at a lower pace and also jobs rose in the same sector for the first time in more than a year, helping the Australian currency to have one of the best performances as risk appetite brought investors back to higher yielding currencies. The New Zealand dollar also climbed as house prices in the country continued to rise, and both South Pacific currencies benefited from the G-20 statements indicating that further measures will stimulate the world economy, creating a bullish pattern in stocks and commodities that increased attractiveness for the Aussie even more.

Both international and domestic scenario favored the Australian dollar in the beginning of this week, helping the currency to reach almost the highest level this year, and it may climb further according to analysts. The economic stimulus provided by the G-20 is likely to increase confidence in trading markets, raising risk appetite and consequently favoring the Aussie.

AUD/USD traded at 0.8553 as of 10:41 GMT from a previous rate of 0.8521 yesterday when markets opened.

If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Euro Climbs on Growing Optimism

noreply@blogger.com (Forex News) — Mon, 07 Sep 2009 18:46:00 +0000

Canadian Dollar Extend Gains on U.S. Optimism

noreply@blogger.com (Forex News) — Sat, 05 Sep 2009 19:58:00 +0000

The Canadian currency climbed even further before the end of this week’s session after optimism was renewed among traders with stocks and commodities climbing, After both Canada and the U.S. posted favorable reports regarding employment conditions.

After a report published in Ottawa indicating a rise of 27,100 jobs for the month of August in Canada, reverting July’s negative figures, the loonie was benefited as stocks in Toronto also rose considerably. This Friday, a U.S. report showing less than expected jobs cuts moved markets worldwide, creating bullish patterns in stocks around the world and influencing the crude oil rates, commodity which prices affect the Canadian currency directly, since the North American nation is one of the world top oil producers. The Canadian dollar had suffered since Bank of Canada officials stated that measures could be taken to weaken the currency, creating a bad sentiment for the currency, but the optimism is currently very strong, making an unstoppable bullish pattern for the loonie.

Analysts forecast that the Canadian dollar may rise to the levels previous to the national bank statements, when the greenback was trading at 1.0630, as long as optimism remains significant in equities and commodities markets, but it is hard to determine whether loonie’s bullish pattern will find support to extend its gains since the Bank of Canada already stated its position against a strong national currency.

USD/CAD closed the week at 1.0860 from 1.1039 on Thursday.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Brazilian Real Benefits From U.S. Jobs Report

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:57:00 +0000

The Brazilian report had a rebound towards the end of the week after U.S. employment conditions start to show small but essential signs of recovery, suggesting that one of Brazil’s most important trading partners is on the way out of recession.

After losing more than 5 percent in the end of the past week and in the beginning of the current one, Brazil’s real found support in renewed optimism as stocks improved and fewer jobs were cut in the U.S. in the month of August, suggesting that the world’s wealthiest country is recovery, which attracted investors to return to high-yielding options.

USD/BRL traded at 1.8555 as of 20:07 GMT from an opening rate of 1.8675.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Mexican Peso Climbs on U.S. Employment Data

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:57:00 +0000

Today, after U.S. employment data indicating that jobs were suffered less losses than forecasts, risk appetite returned to markets worldwide, favoring emergent market currencies like the Mexican peso.

The Mexican peso gained for the third day in a row escaping from the second weekly losses as favorable reports improved the Mexican currency outlook, as appeal for high-yielding riskier assets returned today after favorable employment data was published in the United States. The Canadian dollar also benefited from this movements and gained versus its U.S. counterpart.

USD/MXN traded at 13.3755 as of 19:47 GMT from an opening rate of 13.5356 today.

If you want to comment on the Mexican peso’s recent action or have any questions regarding this currency, please, feel free to reply below.

Canadian Dollar Climbs on Employment Data

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:56:00 +0000

After being traded in the lowest rate in almost two months, the Canadian dollar rallied sharply today on a report that indicated an increase in job numbers in the country, surprising analysts and traders positively.

A very positive day in the end of this week was witnessed in Canada as employers added more jobs than expectations for the month of August, an important sign of economic improvement for the North American nation since even economic regions that are recovering from the global slump still are facing its worse complications in the employment sector. After last week, when Bank of Canada informed that it does not rule out measures to stop the loonie to grow stronger and that the current levels may affect negatively the Canadian economic revocery, the loonie entered a severe downtrend losing more than 3 percent in one week.

Today’s data coincided with a rather good opportunity for traders to purchase the loonie, since the losing streak was intense and long, leaving the employment report to provide support for a corrective movement, as traders may consider the rates before the report as too low. The Canadian dollar may grow further in the short term if more favorable reports start to appear, but if the rates appreciate strongly, the national central bank is likely to take measures to stop it.

USD/CAD traded at 1.0932 as of 11:51 GMT from a previous rate of 1.0998 in the intraday comparison.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Euro Declines On ECB President Comment

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:56:00 +0000

After yesterday’s ECB President comments suggesting that the economic recovery in the region will be a hard process, the euro fell versus a number of main traded currencies, and headed to complete the second week of losses versus the dollar.

The euro suffered the influence of European Central Bank Jean-Claude Trichet’s declaration yesterday affirming that interest rates are not set for hikes in the short-mid-term and that the recovery in the countries using the European common currency will be, using his words, “bumpy”, decreasing attractiveness for the euro which is losing for a fourth week in a row against the Swiss franc. Trichet as long as other members of the ECB commission board are due to speak today in Frankfurt, increasing speculations that yesterday’s dovish tone may be reconfirmed today, decreasing attractiveness for the euro which lost today also versus the pound, after several weeks of gains against the British currency.

Yesterday’s statements were more negative than what traders expected, according to analysts. Some improved economic data was expected to be interpreted with significant optimism by the ECB board, but a rather cautious position affirming that interest rates won’t be raised so soon decreased attractiveness for the European common currency today.

EUR/USD traded at 1.4283 as of 7:11 GMT after touching 1.4355 yesterday. EUR/CHF traded at 1.5140, trading at a rather neutral level from yesterday but losing on the weekly comparison.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Brazilian Real Rebounds Further on Economic Growth Speculations

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:55:00 +0000

After slashing most of its previous 2 months gains this week, the Brazilian continued further a rally that started yesterday, today fueled by forecasts that indicate a less significant contraction for seven of the most important world economies.

After today’s positive perform in Chinese stocks and forecasts indicating that the world economy recovery may happen faster, the Brazilian real climbed further from yesterday, paring most of its losses from the past week, when it reached the lowest level in almost a month.

USD/BRL traded at 1.8734 as of 10:41 GMT from an opening rate of 1.8885.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Crude Oil Volatily Influences Canadian Dollar

noreply@blogger.com (Forex News) — Fri, 04 Sep 2009 19:54:00 +0000

The Canadian dollar did not manage to maintain its early climbs falling again versus its U.S. counterpart as the price of crude oil confused investors regarding demand for the commodity.

Since last week, the Canadian currency has been unable to resist speculators pressure on the outlook for the loonie, as commodities and stocks also underperformed globally, decreasing attractiveness for assets in Canada, as the country’s growth relies significantly on its main trading partner demand, the U.S., nation which still did not find a way out of the current recession.

USD/CAD traded at 1.1020 as of 22:23 GMT from a previous rate of 1.1045.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Swedish Krona Declines on Extended Loans

noreply@blogger.com (Forex News) — Thu, 03 Sep 2009 18:03:00 +0000

The Swedish currency declined today versus the euro and most of the 16 main traded currencies as the national central bank maintained interest rate in its historic record low of 0.25 percent leaving space for speculations that the country financial system is still facing a complicated situation.

The krona declined today versus several currencies after the Riksbank affirmed that it will offer more than $10 billion to Swedish bank to avoid the current banking crisis in the country, maintaining also the current interest rates at a record low of 0.25 percent, in order to stimulate credit and consumption to rescue the country’s economy from recession. The negative news for the Swedish currency also came with a statement from the nation’s central bank indicating that interest rates in the country will remain at extremely low levels through the next year, declining attractiveness for investors to beat in Swedish assets.

Even if the Swedish economy starts to give signs indicating that the worst moments are already behind, the situation remain very uncertain, and the expected maintenance of the rates at the record low level came together with an extremely dovish tone on Riksbank statement, shunning investors from Sweden and decreasing attractiveness for the krona, which may help Swedish products’ competitiveness, selling to markets at lower prices.

EUR/SEK traded at 10.2955 from 10.3550 in the intraday comparison.

If you want to comment on the Swedish krona’s recent action or have any questions regarding this currency, please, feel free to reply below.

Euro Gains Before ECB Meeting

noreply@blogger.com (Forex News) — Thu, 03 Sep 2009 18:02:00 +0000

The euro rebounded today after a negative performance during the beginning of the week as speculations regarding the future of the Eurozone economy improved, indicating growth beyond previous forecasts, spurring the attractiveness for the euro today.

The European central bank will decide its current benchmark interest rates which are expected to be maintained at the same level, but optimism among traders indicate that ECB officials are likely to upgrade growth predictions for the Eurozone as the economy starts to improve slowly as seen in report during the past month. The euro also benefited from optimism in equities and commodities markets today, stopping a seven day decline versus the Japanese yen as investors returned to purchase riskier assets abandoning options in Japan. The euro also gained against some high-yielding currencies, on speculations that some countries like Germany, may rebound quicker from the recession.

The ECB metting today is going to provide support for the euro to gain, according to specialists. Previous reports published in July mainly regarding Germany and France are likely to be mentioned by the ECB as signs of recovery in the region, which will attract more investors to purchase euro-price assets. If the Eurozone continues to perform well, interest rates are likely to be hiked in the medium term future.

EUR/USD traded at 1.4325 as of 10:27 GMT from a previous rate of 1.4217 in the intraday. EUR/JPY traded at 132.34 from 131.66.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Canadian Dollar Impacted by Declining Commodities Demand

noreply@blogger.com (Forex News) — Thu, 03 Sep 2009 18:02:00 +0000

The Canadian dollar is having one of worst performances this week in more than 2 months as risk appetite is declining worldwide, affecting currencies that perform well on growing optimism.

The loonie has been influenced since the past week when Bank of Canada officials affirmed that a strong loonie could jeopardize the nation’s economic performance, and since then, a strong wave of risk aversion also affected stocks and commodities, assets which play a fundamental role to decide the loonie’s trends.

USD/CAD traded at 1.1053 as of 11:06 GMT from 1.1037 yesterday.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.