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Day: December 20, 2011

December 20
2011

US Dollar Lower as Optimism Returns

Optimism has returned to the financial markets today, and that has resulted in a lower US dollar on the Forex market. Forex traders are feeling better about the situation around the world and, as a result, are turning to high beta currencies with better yields. For now, low yielding currencies like the US dollar and the Japanese yen are out of favor as Forex traders look for other options. Optimism about a recovery US economy […]

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December 20
2011

Yen Falls as Japanese Government Prepares to Boost Intervention Funds

Japanese yen is falling today, heading lower on the news that the government is prepared to increase its intervention in the currency market. The Ministry of Finance is hoping for an extra 30 trillion yen for use in currency intervention operations. The new intervention funds bring a cap on the bills issued up to 195 trillion yen, and leaves 65 trillion of that available for currency intervention. The Japanese have already intervened in the Forex market multiple times […]

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December 20
2011

Rand Goes Higher on Spain’s Bill Auction & Germany’s Business Confidence

The South African rand advanced today after Spain auctioned its three- and six-month bills with a good result and the German business confidence unexpectedly improved this month. Spain sold €5.64 billion of bills, exceeding its maximum target, while the borrowing costs went down. The Ifo Business Climate index increased from 106.6 in November to 107.2 in December. It was expected to drop to 106.2. Traders remained cautious as Europe […]

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December 20
2011

Swedish Krona Goes Up to Weekly Record

The Swedish krona climbed today to the highest price in a week on the speculation that the Sweden central bank will leave the interest rates unchanged in the first month of the new year after lowering them this month. The Riksbank decreased it target repo rate by 25 basis points to 1.75 percent. The bank wrote: As inflationary pressures are low and economic development is weak, the Executive Board of the Riksbank has decided to cut the repo rate […]

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December 20
2011

EUR/USD Higher on German Business Confidence & Spanish Bill Auction

EUR/USD jumped today after the German business climate unexpectedly improved this month (Event A on the chart) and the Spanish bill auction ended with a good outcome. Today’s report from the United States demonstrated an improvement in the housing market. Both housing starts and building permits advanced in November. Housing starts were at a seasonally adjusted annual rate of 685k, compared to the revised October estimate of 627k. Building permits were at a seasonally adjusted annual […]

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December 20
2011

Australian Dollar Advances as RBA Minutes Less Dovish Than Expected

The Australian dollar rose today, reversing yesterday’s fall, as the minutes of the Reserve Bank of Australia’s monetary policy meeting weren’t as dovish as analysts expected, considering the decision to lower the interest rates. The RBA lowered its main cash rate by 25 basis points to 4.25 percent on December 6, following the reduction in November. The minutes explained the intensifying concerns about the situation in Europe as the main reason for the monetary easing. The minutes weren’t as pessimistic, though, as one […]

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December 20
2011

Canadian Dollar Rises, Waits for More News

The Canadian dollar gained today against its US counterpart, following yesterday’s fall. The currency rose versus the Japanese yen and the euro yesterday and continued to advance today as the prices for crude oil increased. January futures for crude oil delivery gained $0.55 to $94.08 per barrel on NYMEX after it rose 1 percent and fell 1.1 percent. The loonie experienced some pressure to the downside as the situation in Europe hasn’t shown an improvement. The Standard […]

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