May 10, 2012 – The Plot

May 10
2012

India’s Central Bank Supports Rupee

The Indian rupee rallied today as the Reserve Bank of India took measures to support the currency that has been performing very badly. The central bank decrease the amount of foreign currency companies may hold. The RBI announced that companies may keep only 50 percent of their profits in foreign currency, down from 100 percent, while other half should be exchanged to the domestic currency. This measure should bolster […]

May 10
2012

Loonie Looks Stronger, Employment Data May Weaken Currency

The Canadian dollar gained today as Forex traders showed risk appetite on signs that the situation in Greece is improving and some positive data from the United States. The gains of the currency were limited as tomorrow’s employment data is expected to be rather poor. European politicians confirmed that Greece is receiving a next round of bailout. There are speculations that the most-indebted European country made progress in forming a new government. […]

May 10
2012

Aussie Rallies on Surprisingly Good Employment Data

Australia’s employment data made a pleasant surprise for those Forex traders that were bullish on the Australian dollar as employment unexpectedly grew and the unemployment rate fell. The number of employed persons in Australia rose by 15,500 in April from March, while analysts expected a drop by 4,800. The unemployment rate slipped from 5.2 percent to 4.9 percent, even though an increase to 5.3 percent was predicted. The Australian currency is still pressed by negative […]

May 10
2012

Bank of England Avoids Quantitative Easing, Pound Profits

The Bank of England refrained from easing the monetary policy at today’s meeting, causing the Great Britain pound to climb. The United Kingdom still suffers from the double-dip recession and it is questionable whether the currency could maintain its gains. The BoE held its key interest rate at 0.5 percent and the asset purchase facility at £325 billion. The bank’s decision was likely caused by fears that excessive easing may lead to a surge […]

May 10
2012

Euro Finds Support in Forex Trading

Euro is finding some support in Forex trading today, heading a little bit higher. Even though there are still concerns about what is happening in Europe, traders are looking for a little bit of respite from the risk aversion and gloom. So, the euro is a little bit higher right now, and other high beta currencies are seeing some success as well. Euro is slightly higher against […]

May 10
2012

US Dollar Pulls Back as Risk Appetite Makes an Appearance

After a few days of gloom over Europe, risk appetite is making an appearance in the financial markets. US dollar is pulling back from recent highs against the euro and the pound, and heading lower as Forex traders look for a little extra yield, and as a degree of optimism is seen as moves are made to shore up Spain. US dollar was headed higher today, moving up as news about Great Britain’s economy […]

May 10
2012

EUR/USD Rises as Situation in Greece Improves

EUR/USD gained today after two days of losses on the news that Greece will receive a bailout and a progress in a forming new government was made. US fundamentals were mixed. Import prices fell and the trade balance deficit rose. On the positive side, export prices increased and the federal budget balance had its first surplus since 2008. US trade balance deficit increased to $51.8 billion in March from $45.4 billion […]

May 10
2012

Negative Outlook for Australian Fundamentals Hurt Aussie

The Australian dollar dropped, reaching the lowest level against its US counterpart this year, as Forex market participants anticipate a set of poor fundamental data from the South Pacific country today. Australian employment is expected to fall by 4,800 in April, following the increase by 44,000 in preceding month. Analysts predict that the unemployment rate will rise from 5.2 percent to 5.3 percent. The trade balance deficit widened from A$46.0 […]

Day: May 10, 2012