May 15, 2013 – The Plot

May 15
2013

CAD Gains vs. USD & EUR on Economic Data, Flat vs. JPY

The Canadian dollar gained against the euro and the US dollar as macroeconomic data from the eurozone and the United States was bad. The currency was flat versus the Japanese yen. US industrial production fell 0.5 percent in April after rising 0.3 percent in March. The Producer Price Index edged down 0.7 percent last month. The negative reports led to talks that the Federal Reserve will maintain its monetary stimulus. The news […]

May 15
2013

Stronger US Dollar Pushes Gold Prices Lower

The US dollar index is higher today, gaining ground as the greenback shows improvement against the euro. Even though the dollar is lower against some currencies, the greenback is showing overall strength, and that is pushing commodities like gold lower. Greenback is showing solid strength today, thanks in large part to the relative recovery of the US economy. Against the euro, especially following the latest GDP data out of Germany […]

May 15
2013

UK Pound Gets Boost from BOE Outlook

UK pound is gaining ground today, heading higher as the latest BOE economic outlook provides some hope for growth. Sterling is on the rise against most of its major counterparts due to the enthusiasm and expectations for the rest of the year. The Bank of England released its quarterly inflation report, and forecast that growth may increase to 0.5 per cent this quarter. This represents an increase from the 0.3 per cent growth seen […]

May 15
2013

German GDP Trails Forecasts, Euro Down

The euro fell today as German economic growth trailed forecasts, reducing investors’ optimism about the future of the eurozone. Today’s report showed that “the German economy is slow in gaining momentum” as gross domestic product barely rose 0.1 percent in the first quarter of 2013. Analysts have hoped for 0.3 percent expansion. At the same time, the US economy looks robust enough, driving the Dollar Index to the highest level in almost 10 months. […]

May 15
2013

Intervention Concerns Push Won Lower

The South Korean won declined today on speculations that the weakness of the Japanese yen will prompt nation’s policy makers to intervene in an attempt to push the exchange rate lower. Japan’s aggressive monetary policy worries other Asian nation and encourages them to intervene too. Bank of Korea Governor Kim Choong Soo said that it will have a “big impact” on the South Korean economy. Policy makers surprised Forex market participants […]

May 15
2013

EUR/USD Down on GDP Reports from Eurozone

EUR/USD declined today, extending yesterday’s drop, after the release of data about economic growth in the eurozone countries. France and Italy remained in recession, while the German economy barely managed to demonstrate growth. Eurozone gross domestic product shrank 0.2% in the first quarter of 2013 — less than in the previous three months, but more than was predicted. (Event A on the chart.) Data from the United States was not good either. PPI […]

May 15
2013

Canadian Dollar Maintains Decline amid Concerns for Economic Growth

The Canadian dollar demonstrated a big drop against its US counterpart yesterday and continued to fall today on concerns that Canada’s economic growth will trail that of the United States. The currency was also weak against other majors, including the euro and the yen. The US economy is expected to expand 2 percent in 2013. At the same time, analysts believe that the Canadian economy will grow just 1.6 percent. Such outlook […]

May 15
2013

Aussie Soft After Budget Forecast

The Australian dollar was soft today after the government forecast that economic growth will slow in the next financial year, adding reasons for the central bank to cut interest rates further. The Australia Treasury revealed the budget for the 2013–14 financial year today. It predicted that growth of real gross domestic product will slow to 2.75 percent from the current year’s 3 percent. Unemployment is projected to edge up from […]

Day: May 15, 2013