Day: December 11, 2013

December 11
2013

Signs of Budget Agreement Do Not Make Dollar Very Strong

There were signs that US politicians may reach an agreement about the budget. The dollar attempted to profit from the news, but was unable to demonstrate any real strength against the euro and the Japanese yen, though rallied against the Great Britain pound. US Senate Budget Committee Chairman Senator Patty Murray and House Budget Committee Chairman Representative Paul Ryan introduced a budget plan that would prevent automatic […]

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December 11
2013

NZ Dollar Trims Losses as RBNZ Signals About Stimulus Withdrawal

The New Zealand dollar was soft today, but managed to erase part of its losses after the central bank signaled that it may reduce monetary stimulus in relatively near future. The Reserve Bank of New Zealand kept its benchmark interest rate (the Official Cash Rate) at 2.5 percent today. Governor Graeme Wheeler indicated in the statement that inflation pressure is strengthening: Annual CPI inflation increased to 1.4 […]

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December 11
2013

Money Market Rates Help Euro

The latest money market rates are providing some help for the euro right now. It appears that things are looking up for the euro as the ECB signals that, even though rates are likely to remain low, they won’t be cut further. Euro is gaining ground today as overnight money market rates in the eurozone head a little higher. Slightly higher rates are a sign of a strengthening economy, and there […]

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December 11
2013

Israeli Government Does Not Want Strong Shekel

The Israeli new shekel fell today as Israel’s government voiced concern that a strong currency damages nation’s exports and economy. Israeli exports tumbled 16 percent last quarter following the 8.7 percent rally of the shekel over this year. Officials called the strong exchange rate “a mortal blow to Israeli exports”. As a result, they have to seek new trading partners as economies in Israel’s traditional markets were weakening. USD/ILS ticked […]

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December 11
2013

Thai Baht Rallies as Shinawatra Takes Drastic Measures

The Thai baht advanced today as Prime Minister Yingluck Shinawatra took drastic measures to ease political tensions in the country, dissolving the parliament. Previously, protests against the current government were pushing the baht down and some analysts said that the currency became too oversold, leading to the current rally. Yet most experts think that the rally will likely be very short. It is hard to believe the baht will be […]

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December 11
2013

EUR/USD Maintains Upward Movement

EUR/USD retained its upward momentum, rising for the sixth straight trading session today. There were signs that US politicians may agree on a plan to postpone automatic budget cuts for two years. The dollar attempted to rally on the news, but was unsuccessful so far. This week is relatively poor on macroeconomic reports from the United States. Next week will be much more important as the Federal Reserve will […]

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