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Day: May 16, 2013

May 16
2013

Canadian Dollar Drops on Speculations About End of Fed’s QE

The Canadian dollar dropped today as speculations about reduction of quantitative easing by the US Federal Reserve continued, trimming risk appetite of investors and making them less willing to buy risky currencies. John Williams, the President of the Federal Reserve Bank of San Francisco, said the central bank may slow its $85 billion monthly asset-purchase program. Such speculations were present for some time, bolstering the US currency and weakening riskier ones. […]

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May 16
2013

Euro Mixed Today as Oil Probe Continues

Euro is mixed today on the Forex market as an oil probe looking into price fixing continues. Recent US economic data is also being taken into consideration, since it demonstrates that maybe recovery is not on the way after all. Euro is turning in a mixed performance today, heading higher against low beta currencies like the dollar and the yen, but losing ground to the UK pound. Even […]

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May 16
2013

Japanese Yen Remains Weak after GDP Reading

The latest GDP reading for Japan has been released, and it shows an improvement for the first quarter of 2013. This news hasn’t served to strengthen the yen, however. Instead the Japanese currency is down against its major counterparts on expectations of continued easing. Japanese GDP increased 0.9 per cent for the first quarter of 2013, beating the forecast of an increase of 0.7 per cent. The gain is being attributed to the rise in exports and to an increase in consumer […]

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May 16
2013

EUR/USD Rallies Even as Eurozone CPI Slows

EUR/USD rallied today, erasing its earlier decline, even as eurozone annual inflation was down from 1.7% in March to 1.2% in April. (Event A on the chart.) Absence of inflation pressure should allow the European Central Bank to ease its monetary policy further if it deems such action necessary. Data from the United States continued to frustrate traders. The manufacturing index was particularly disappointing as it unexpectedly fell this […]

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May 16
2013

Chilean Peso Retreats on Fears of Intervention

The Chilean peso fell as signs of economic slowdown in the South American country fueled speculations that the central bank may ease its monetary policy to stem the currency’s strength. Chilean economic activity growth slowed to 3.1 percent in March from a year ago, slowest since July 2011. Copper, the major Chilean export, fell today. Rodrigo Vergara, the Governor of the Central Bank of Chile, said that the peso should not appreciate […]

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May 16
2013

Polish Zloty Drops as Inflation Slows

The Polish zloty weakened today as negative fundamentals, including slowing inflation, spurred speculations that the central bank will cut interest rates yet again. The Consumer Price Index rose 0.8 percent in April from a year ago, the slowest rate of growth since June 2006. It was the seventh straight month of slowing inflation. The current-account deficit was at â‚¬200 million in March, more than double the analysts forecast. The National […]

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May 16
2013

Swiss Franc Gains Despite Falling Economic Expectations

The Swiss franc gained yesterday and remained little-changed today against the US dollar and the euro even as economic expectations were worsening. The currency traded sideways versus the Japanese yen. The ZEW-CS Indicator of economic expectations for Switzerland sank as much as 17.8 points to 2.2 in May. The report said that “last month’s significant gains are lost and the indicator falls back to the level of March 2013”. Meanwhile, the Swiss Producer Price Index ticked up […]

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