CPI data and speculation that Australia will cut interest rates helped the Aussie dollar to rally off of recent lows. The Kiwi fell in overnight trade as worries from Europe sent speculators to the bench.Comments »
“Canada’s dollar strengthened versus its U.S. counterpart as speculation the Federal Reserveand Chinese government will take steps to boost economic growth spurred demand for higher-risk assets.
The currency was headed for a second straight weekly gain on speculation the Bank of Canada will be the first among Group of Seven counterparts to raise interest rates. Stock-index futures rose and crude oil climbed above $91 a barrel. Statistics Canada will report today that wholesale sales rose 0.2 percent in May, according to the median of 16 forecasts compiled by Bloomberg.”Comments »
“Germans have garnered plenty of economic benefit from the euro over the years as the common currency – fundamentally undervalued in Germany – allowed peripheral European nations to be able to purchase more German exports.
However, a lot of Germans still have a special place for the old German Deutsche mark. Literally – that special place is under their mattresses, and the currency Germany used before transitioning to the euro is starting to resurface again.”Comments »
“The dollar weakened for a third day against the euro amid speculation Federal Reserve Chairman Ben S. Bernanke will hint at additional stimulus when he speaks to Congress about monetary policy starting today.
The U.S. currency fell versus 12 of its 16 major peers after an unexpected decline in retail sales announced yesterday rekindled speculation the Fed will introduce additional steps to support the economy. The Swedish krona strengthened against all its major counterparts after the Riksbank released minutes of its July meeting. Australia’s dollar rose as central-bank minutes said the economy has some “momentum.”Comments »
“The start of the earnings season in the US provides an opportunity to review the currency correlations with the S&P 500. We conduct our analysis on the percentage change of the currencies and percentage change in the S&P 500. What we find then is the correlation of the returns, which is more important to investors then if the levels are correlated.
We look at a 30-day correlation to see the near-term trend and we look at the 60-day correlation to the slightly longer term. The general take away is that despite a number of other drivers and influences, the correlation between most of the currencies we looked at and the S&P 500 has increased in the recent period.”Comments »