Day: May 22, 2012

May 22
2012

Dollar Gains on Negative Risk Sentiment & Good US Fundamentals

The US dollar advanced today on fears of the worsening crisis in Europe that drove investors to safer currencies and the dollar in particular as the US economy continue to show signs of recovery. Traders are worried by decline of Italy’s economy and speculation that Spain may be the next country to ask for a bailout. There was no major news from Europe recently, and that is not good as without a significant positive event the situation in the eurozone would […]

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May 22
2012

Euro Falls as Eurobond Debate Begins

Euro is dropping today as eurozone leaders meet to discuss growth options for the 17-nation currency zone. Eurozone growth has been sluggish, verging on recession, and that is impacting the ability of member states to handle their sovereign debt. One of the options being floated as part of a package is a eurobond. However, Germany is opposed to such a measure. Euro is heading lower today, mostly due to uncertainty. There is uncertainty […]

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May 22
2012

Pound Falls as CPI & HPI Drop

The Great Britain pound fell against the US dollar today after reports showed that inflation slowed and house prices unexpectedly declined, adding incentive for the Bank of England to stimulate the economy. The currency advanced against the euro after four days of losses. The consumer price index was 3.0 percent in April on an annual basis, down from 3.5 percent in the month before. The house price index fell 0.4 percent in March from […]

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May 22
2012

Canadian Dollar Drops Against US Dollar on Risk Aversion

Risk aversion is the Forex market driver today, thanks to the Fitch downgrade of Japan. Even though equities aren’t being much affected by the latest news, currencies are. High beta currencies like the Canadian dollar are dropping, thanks to a desire for safe haven. Loonie is headed lower against the US dollar today, even though its own credit rating is remains solid. Canada retains the highest credit […]

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May 22
2012

Yen Slides as Fitch Downgrades Japan

The Japanese yen fell today as Fitch Ratings downgraded Japan’s sovereign credit rating because country’s actions to reduce public huge public debt are too slow. Fitch cut Japan’s long-term foreign-currency rating from AA to A+ and lowered the local-currency grade from to AA- A+. The outlooks on both rankings are negative. Some financial specialists recommended buying the yen against the dollar. They are reasoning that the yen […]

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May 22
2012

US Existing Homes Sales Advance, EUR/USD Sinks

EUR/USD was trading sideways till 11:30 GMT and than sharply fell. The decline continues as of now. US existing home sales rose last month, while manufacturing slowed its growth, but continued to expand. Existing home sales increased to the seasonally adjusted annual rate of 4.62 million in April from the downwardly revised 4.47 million in March, matching forecasts exactly. (Event A on the chart.) Richmond Fed manufacturing index slipped […]

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