June 27, 2013 – The Plot

June 27
2013

Yen Falls as Investors Less Scared of QE End

The Japanese yen fell today as comments of US policy makers made investors less scared and reduced demand for the currency as a safe haven. Not that need for safety was helping the yen previously. US policy makers were trying to hush speculations about an end to quantitative easing. They were successful to some degree. It is interesting to see that the yen suffered more than the dollar. To tell the truth, currently the yen […]

June 27
2013

Dollar Mixed as Policy Makers Say QE End Is Not Near

US policy makers are trying to downplay expectations of stimulus reductions that spurred risk aversion on the Forex market. Such attempts weakened the US dollar against some currencies, including the euro, but the greenback retain strength versus some other majors like the Great Britain pound and the yen. Yesterday, Jeffrey Lacker, the President of the Federal Reserve Bank of Richmond said: Markets got a little bit ahead of us in terms of what […]

June 27
2013

Risk Appetite Helps Canadian Dollar

Canadian dollar is getting a bit of help today, thanks largely to the risk appetite brought on by European confidence. Risk assets are in demand today, and that is providing some support to the loonie against the greenback. Canadian dollar is rising against its US counterpart today as risk appetite reduces the interest in safe haven and as Forex traders come out looking for yield. The latest news from the eurozone, showing improving sentiment, […]

June 27
2013

Pound Falls as Current-Account Deficit Widens

The Great Britain pound dropped today as the current account deficit widened unexpectedly last quarter, leading to concerns about sustainability of economic growth. UK economic growth remained unrevised in the final estimate, showing 0.3 percent increase in the first quarter of 2013 after the contraction by 0.2 percent in the preceding quarter. Yet the current account showed a deficit of £14.5 billion in Q1 2013. It was above £13.6 billion in Q4 2012 and the forecast […]

June 27
2013

Euro Gets Boost After Confidence Report

Euro is getting a boost today, thanks in part to the latest confidence report out of the eurozone. Also helping the situation for the euro is the fact that there has been some improvement in Germany’s numbers as well. If consumers are getting ready to spend, and if things are improving in Germany, there is a chance that the eurozone could start moving out of recession. The European Commission reported that the Economic Sentiment Indicator […]

June 27
2013

NZ Dollar Rises with Business Confidence

The New Zealand dollar gained today as business confidence improved this month. The currency advanced even as trade surplus unexpectedly shrank last month. The ANZ Business Confidence index rose from 41.8 in May to 50.1 in June. Meanwhile, the New Zealand trade surplus narrowed from NZ$174 million in April to NZ$71 million in May. Market analysts have promised an increase to NZ$412 million. NZD/USD rose from 0.7784 to 0.7843 and NZD/JPY […]

June 27
2013

EUR/USD Rises on Improving Economic Confidence, Gives Up Gains

EUR/USD gained today after a report showed that European economic confidence improved, while German unemployment decreased. The currency pair retreated later on positive data from the United States. The housing report was especially good. Initial jobless claims fell from 355k to 346k last week, in line with forecasts. (Event A on the chart.) Personal income and spending grew last month. Income was up 0.5% in May, rising […]

June 27
2013

Dollar Remains Firm on Speculations About QE End

The dollar continued to rise against other most-traded currencies, including the euro and the Great Britain pound. The currency fell a little today, but retained most of its yesterday’s gains. It stayed flat versus the Japanese yen. Prospects for reduction of Federal Reserve’s quantitative easing continued to support the immense rally of the US currency. It is true that there is an opinion that it is too early for trimming stimulus and such […]

June 27
2013

Canadian Dollar Gains on Hopes for Stimulus

The Canadian dollar gained against its US peer today on speculations that the state of the economy does not warrant an early reduction of monetary stimulus. The currency also gained against the Great Britain pound and the euro. Federal Reserve Bank of Richmond President Jeffrey Lacker said that he expects growth to stay “sluggish” for some time, reducing incentive for changing the current accommodative policy. Indeed, expansion of US gross domestic product […]

Day: June 27, 2013