News – Page 1127

November 30
2007

ECB Worries about Inflation Rising

October consumer prices inflation report added some new troubles for ECB to worry about as the released 2.6% CPI growth last month exceeded ECB’s target of 2.0%, while the economy growth is not performing at the pace that would allow another rate hike soon. Until September 2007 ECB had fought inflation with some success – […]

November 30
2007

Fed Cut Talks Increase Confidence in High Risk Currencies

Recent talks by Federal Reserve Vice Chairman Donald Kohn about possible interest rates cut by the Fed added confidence to the Forex market traders that rely on buying risky currencies with the cheap low risk Japanese yen – so called carry traders. Worried by the high possibility of U.S. economy recession (stated by all major […]

November 29
2007

Danger of Forex Reserves Change

Li Yang, an ex-adviser of the People’s Bank of China, suggests a great care in handling any changes to the country’s foreign currency reserves (world’s largest), that are currently composed mainly of U.S. dollars. By the Li’s words, it’s not reasonable to change the vast amount of current reserves, but the new income that goes […]

November 29
2007

Russian Foreign Currency Reserves Continue to Grow

Foreign currency reserves of the Russian Federation grew up for the seventh week in a row and now are at their record high value — $459.6 billion. As the oil prices are surging to their new maximums the oil-exporting Russian economy wins greatly, increasing the profits of the country’s largest oil companies and supplying national currency reserves with new dollars. Russia has the third largest national reserves in the world, lagging behind China’s $1.4 trillion […]

November 28
2007

Dollar Bouncing Up

U.S. Dollar gained 0.5% against euro today after the Abu Dhabi government bought a $7.5 billion stake from Citigroup Inc. This sum will help Citi to recover from the recent subprime lending write-offs, as this bank announced surprisingly high losses from this kind of lending. EUR/USD fell below 1.4800 mark after a good fundamental signal […]

November 28
2007

Chinese Yuan on the Road to Revaluation

Chinese yuan will definitely see a some kind of revaluation against dollar and other major currencies soon. Jean-Claude Trichet spoke today about his latest endeavor to convince China government to make confident steps towards stronger yuan policy. From his words the Chinese central bank understands the concerns of their trade partners and the steps will […]

November 27
2007

Canadian Continues to Fall

Canadian dollar depreciated to its monthly lows today after global commodities prices went down. The OPEC warned that they might increase the oil output to counter the possible economical slowdown on oil-importing countries. That message caused a decline in oil prices. Canada is one of the world’s largest oil exporters which is not in OPEC. Decreasing oil prices make Canadian currency less attractive to foreign buyers. USD/CAD […]

November 27
2007

Indian Rupee Continues Decline

Indian rupee continued its decline against U.S. dollar started more than a 10 days ago. Fueled by the demand for foreign oil, dollar buying weakens rupee as the interbank Forex traders massively sell rupees. Rupee is falling since November 14, when the carry trade slump started to affect Indian economy. With higher global volatility investors decreased their appetites for the risky Indian equities and thus the Indian […]

November 26
2007

Canada Confirms Dollar Too Overvalued

Canadian Prime Minister, Stephen Harper, confirmed yesterday that his vision of latest CAD’s fast and strong appreciation against USD coincides with the opinion stated by Canada’s Financial Minister Jim Flaherty. The surprisingly high strengthening of Canadian currency bears highly speculative nature and is essentially harmful to the Canada’s economy. Canada already felt the effect of its currency appreciation as the retail sales and factory orders showed a worse than expected […]

November 26
2007

Future of Carry Trade – U.S. Dollar

U.S. dollar is likely to replace Japanese yen on the carry trade arena as the short currency. According to the currency pairs yield analysis, Great Britain pound, Brazilian real and Hungarian forint combined made over 17% against dollar this year, while buying those currencies against yen yielded only 9%. Anticipated recession in U.S. is one of the reasons fueling dollars decline. Federal Reserve had to cut rates […]