August 16, 2013 – The Plot

August 16
2013

Canadian Dollar Drops as Fundamentals Do Not Look Good

The Canadian dollar closed lower today on concerns that the nation’s economy is struggling and this will not allow the Bank of Canada to perform an interest rate hike that it was promising for some time. Manufacturing sales declined 0.5 percent in June, demonstrating the fourth decrease in six months. Analysts have predicted an increase by the same rate. This week most currencies were especially susceptible to domestic news. There were […]

August 16
2013

Dollar Mixed as US Data Leaves Traders Confused

The US dollar was heading lower against the euro for the most part of today’s trading session, but currently managed to recover. The currency also rose against the Japanese yen, while staying flat versus the Great Britain pound. Most Forex market participants believed that the Federal Reserve will scale back it stimulus program next month. Yet this week’s string of negative economic reports made traders uncertain […]

August 16
2013

Expectations for a Weaker Yen Continue

Recently, with the uncertainty and upheaval, the yen has shown some strength. However, the yen is weakening again, and there are expectations that a weaker yen will be the norm moving forward. At least, yen weakness is seen as the most likely “sure bet” in the markets in the near to medium-term future. For the most part, focus in the markets is on what’s happening in the United States. Forex traders combing through US data, looking for clues […]

August 16
2013

Confidence in the Euro Grows

Confidence in the euro is growing right now, as evidenced by the increased issuance of euro-denominated debt. With the news that the eurozone has returned to growth after 18 months of recession, and with the debt crisis seemingly under control, confidence in the euro is growing, and the 17-nation currency is getting a little help. Thanks to the recent troubles in the eurozone, borrowing costs have been somewhat low. However, nervousness about the fate of the euro has held […]

August 16
2013

Indian Rupee Drops on Regulations Worries & Fed Speculations

The Indian rupee slumped today as attempts of policy makers to prevent further currency’s depreciation actually made investors less willing to bring money into the country. Uncertainty about stimulus tampering by the Federal Reserve did not help the currency either. The Reserve Bank of India announced this week that it is going to take measures for reducing capital outflows out of the country. Traders did not welcome the news as they were […]

August 16
2013

Sterling Flat, Heads to Weekly Gain

With absence of any macroeconomic data today, the Great Britain pound was trading flat. Still, the currency was heading to a weekly gain as the previous favorable reports helped the currency to rally over the week. The sterling jumped yesterday against the US dollar on the positive retail sales report. Against the Japanese yen, the UK currency was rallying every trading session this week. Next week, the very important second estimate of economic […]

August 16
2013

EUR/USD Rises as US Data Leaves Sour Taste

EUR/USD rose today as economic data from the United States was nowhere as good as was expected, making traders doubt if the Federal Reserve will indeed reduce its asset purchases next month. Such doubts were negative for the dollar. The US currency was rising for the first three days of the week, but sharply declined yesterday and with today’s drop is heading to a weekly loss. Both housing starts and building […]

August 16
2013

Aussie Flat as Traders Wait for Next Week’s RBA Minutes

The Australian dollar was flat today as Forex traders were unsure about future monetary policy of the nation’s central bank and were waiting for the minutes of this month’s policy meeting that will be released next week, hoping to understand what the bank will do. The Reserve Bank of Australia left interest rates unchanged this month and dropped hints about future rate cuts. Yet market participants are worried […]

Day: August 16, 2013