“The euro rose 0.1 percent to $1.2578 at 8:15 a.m. New York time, after falling as much as 0.5 percent. It reached $1.2638 on Aug. 31, the strongest since July 2. The shared currency gained 0.2 percent to 98.72 yen. Japan’s currency was little changed at 78.46 per dollar.”
Comments »U.S. Companies Brace for an Exit From the Euro by Greece
” Even as Greece desperately tries to avoid defaulting on its debt, American companies are preparing for what was once unthinkable: that Greece could soon be forced to leave the euro zone.
Bank of America Merrill Lynch has looked into filling trucks with cash and sending them over the Greek border so clients can continue to pay local employees and suppliers in the event money is unavailable. Ford has configured its computer systems so they will be able to immediately handle a new Greek currency.
No one knows just how broad the shock waves from a Greek exit would be, but big American banks and consulting firms have also been doing a brisk business advising their corporate clients on how to prepare for a splintering of the euro zone.
That is a striking contrast to the assurances from European politicians that the crisis is manageable and that the currency union can be held together. On Thursday, the European Central Bank will consider measures that would ease pressure on Europe’s cash-starved countries.
JPMorgan Chase, though, is taking no chances. It has already created new accounts for a handful of American giants that are reserved for a new drachma in Greece or whatever currency might succeedthe euro in other countries.”
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The Aussie Dollar Jumps on Central Bank Holding Rates Steady
Unfortunately the Australian stock market did not do as well as the currency.
Comments »The Euro Remains Strong on Expectations of the Draghi Bond Buying Plan
The Euro was up in early trade, but has ticked a bit lower. All in all the Euro remains above 1.25+ in expectations that Draghi will ‘do what it takes’ to save the euro.
Comments »The Dollar Hits an Eight Week Low as QE is Expected
“The dollar fell to an eight-week low against the euro before Federal Reserve Chairman Ben S. Bernanke delivers his annual speech on monetary policy at the central bank’s symposium in Jackson Hole, Wyoming.
The U.S. currency weakened against all but two of its 16 major counterparts after Atlanta Fed President Dennis Lockhart said yesterday the central bank has a tough decision on whether to add further stimulus to promote a stronger economic recovery. Bernanke’s address in 2010 preceded a second round of quantitative easing to support growth. Sweden’s krona rose by the most in two weeks against the greenback amid demand for higher-yielding assets.”
Comments »The Aussie Dollar Continues to Flounder Over Global Growth Concerns, Mining Slowdown
Australian Investors Flock to Bonds and Ditch Currency as Building Permits Fall More Than Expected
Investors are beginning to shun risk and find safety in the land down under.
Comments »The Euro Shows Weakness Just Before Hitting Eight Week Highs
The Euro has been moving higher as of late, but took a rest and retreated a bit just below eight week highs. The euro is at 1.2422 down 0.022.
Comments »The Euro Advances as Spain Sells More Notes Than Expected
Spain managed to sell more bills than expected as yields fell. This helped the euro to remain buoyant as short cover into the September 6th ECB detail release of their bond buying plans.
Comments »The Aussie Dollar Falls to One Month Lows on Global Growth Outlook, Commodities Lead the Way Down
“Australia’s dollar touched the lowest level in a month after commodities slid amid concern global economic growth will weaken.
The so-called Aussie declined for a fifth day against the yen after a private report showed the South Pacific nation’s new home sales dropped for the first time in four months. Data this week may show Chinese manufacturing stagnated. New Zealand’s dollar weakened after Asian stocks retreated and dairy exporter Fonterra Cooperative Group Ltd. cut its forecast for payments to farmers.”
Comments »Dollar Bulls Race for the Exit as Confidence Grows in Global Growth and the ECB Bond Buying Plan
“Hedge funds and large speculators are abandoning bets on a stronger dollar at the fastest pace ever amid growing confidence in the global economy.
Futures contracts favoring gains in the U.S. currency surged to the most on record in June as growth faltered and investors retreated from risky assets. Now, hedge funds are reversing those bets as central banks from China to the U.S. vow to stimulate their economies, prompting money managers to seek higher returns from Sweden to Australia.”
Comments »The Euro Weakens Overnight
“The euro snapped four days of gains against the dollar after the European Central Bank’s plan to buy government bonds was said to be held up until Germany’s ruling on Europe’s permanent bailout fund.
Chancellor Angela Merkel said Germany and France will keep pressure on Greece to overhaul its economy when she meets Prime Minister Antonis Samaras, who is seeking more time to fix his debt-ravaged country. ECB President Mario Draghi may wait until Germany’s Constitutional Court rules on the legality of Europe’s fund on Sept. 12 before unveiling full details of his plan to buy government bonds, two central bank officials said. The report undermined speculation that Draghi would announce new measures at his Sept. 6 press conference.”
Comments »Euro Advances Amid Central Bank Stimulus Speculation
“The euro climbed to the strongest level against the dollar in almost seven weeks as speculation the U.S. and China will ease monetary policy spurred demand for currencies that perform better as the global economy expands.
Europe’s shared currency rose against the yen before Germany and France hold debt-crisis talks in Berlin today. The dollar fell for a fourth day before a report forecast to show sales of new houses in the U.S. increased in July and after Federal Reserve Bank of Chicago PresidentCharles Evans broadened his call for additional measures to support growth. New Zealand’s dollar appreciated against all but one of its major counterparts as Asian stocks gained.”
Comments »Dollar, Yen Gain As Japan’s Trade Gap Widens
“The dollar and yen strengthened after Japan reported a wider-than-estimated trade deficit in July, underlining the fragility of the global economy and boosting demand for safer assets.
The U.S. currency rose the most against the South African rand and Swedish krona after Federal Reserve Bank of Chicago President Charles Evans described a weakening in global trade as “awful.” The euro extended losses against the dollar as Luxembourg Prime MinisterJean-Claude Juncker travels to Greece to discuss the nation’s austerity plans. Australia’s dollar fell as stock declines sapped demand for for higher-yielding assets.
“We’ve had the disappointing Japanese trade data and the dollar is a bit stronger,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The Fed minutes will be closely watched. The dollar will come down if they signal that they will take action.”
Comments »The Euro Falls on a Rift Between The Bundesbank and the ECB Bond Plan
“The euro fell for a second day versus the dollar after Germany’s Bundesbank stepped up criticism of proposals that the European Central Bank buy government bonds to quell the region’s debt crisis.
Europe’s shared currency slid from withing 0.6 percent of a six-week high versus the yen and declined against most of its major peers as comments from the German central bank highlighted divisions over how to end the turmoil. The euro rose earlier after Spiegel magazine reported the ECB’s governing council is considering setting yield limits on euro-region bonds. The Australian dollar climbed as stock gains boosted demand for higher-yielding assets.”
Comments »The Euro Hits a Six Week High as Merkel Backs the ECB Bailout Plan
“The euro rose to a six-week high versus the yen as Germany signaled its support for aEuropean Central Bank approach to resolve the debt crisis.
The shared currency is set to complete five-day gains against all 16 of its major counterparts before German Chancellor Angela Merkel meets French President Francois Hollande on Aug. 23 and Greek Prime Minister Antonis Samaras a day later. The yen headed for its biggest weekly loss in almost two months versus the greenback as the extra yield investors receive from U.S. securities over Japanese debt climbed. Singapore’s dollar weakened as exports rose at a slower pace.
“We’re starting to see the early signs of some real progress being made in the euro area,” saidAndrew Salter, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “We do see the euro rebounding modestly over the next few months.”
Comments »The Aussie and Kiwi Dollars Rise on Minor Commodity Strength
Commodities began the trading day with a decent rally in Asia lending strength to the Kiwi and Aussie dollars. Most commodities have gone flat overnight.
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The Dollar Continues to Strengthen Against Most Currencies
“The dollar strengthened before a report that will probably show the U.S. housing market is stabilizing. U.S. stock-index futures and European equities were little changed, while emerging-market shares fell for a second day as foreign investment in China dropped to a two-year low.
The dollar appreciated against most of its 16 major peers, gaining 0.4 percent versus the yen at 7:25 a.m. in New York. The pound rallied after U.K. retail sales unexpectedly rose. Standard & Poor’s 500 Index futures added 0.2 percent. The Stoxx Europe 600 Index (SXXP) slipped less than 0.1 percent, with the number of shares changing hands 27 percent lower than the 30-day average. The MSCI Emerging Markets Index (MXEF) fell 0.1 percent. Wheat jumped 1.7 percent.”
Comments »The Greenback Remains Strong Against Most Currencies, Hitting One Month Highs
“The dollar was 0.2 percent from an almost one-month high against the yen before data today that may add to signs of economic recovery in the U.S., curbing the chances of further monetary easing from the Federal Reserve.
The greenback held gains versus most major peers with reports forecast to show improvements in the manufacturing industries of the world’s biggest economy. Demand for the euro was limited after figures yesterday showed gross domestic product contracted in Europe’s 17-nation currency bloc. The Australian dollar touched a one-week low after a report indicatedconsumer confidence fell by the most in five months. Malaysia’s ringgit slid before GDP figures due today.”
Comments »The Aussie Dollar Falls on Global Slowdown Expectations
“Australia’s dollar fell against 14 of its 16 major counterparts as signs of a global economic slowdown sapped demand for higher-yielding currencies.
The New Zealand dollar extended last week’s decline versus the yen after a report today showed Japan’s economy grew less than forecast, adding to signs of a worldwide slump. Data tomorrow may show the euro-area economy contracted during the second quarter. Demand for the so-called Aussie dollar was supported as futures traders increased bets that it will gain.”
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