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 »Expectations of a Bailout Banking License Help to Stop the Euro’s Slide
The Euro Continues to Remain Weak and Under 1.21
The Euro is trading at 120.95 and is said to be technically open to 1.16 – 1.18.
Comments »The Euro Challenges 1.21 Support
After hitting 1.21 a little over a week ago the Euro bounced nicely. The bounce has faded and the Euro is now testing this support.
Comments »The Aussie and Kiwi Dollars Fall in Risk Off Trade
As with equities, many currencies have sold off deeply since last Friday in risk off trading fashion.
Comments »The Euro Falls, Manages to Hold Support in the 1.22 Area
While the Euro has been week lately it seems to be holding just above a recent low not seen in two years. For now the Euro remains above 1.21.
Comments »The Aussie Dollar Falls Over Growth Concerns
After a week of risk on gains, worries began in Asian equities and spilled over into currencies like the Aussie dollar and the Euro.
Comments »The Loonie Hits a Two month High Against the Greenback
“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 Are Buying Stuff With Deutsche Marks Again
“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 Euro Falls Before Germany Vote On Spanish Aid
The Aussie Dollar Rises on Stimulus Bets
“Australia’s currency touched an almost two-week high against the dollar amid speculation theFederal Reserve will take additional steps to boost growth.”
Comments »The Greenback Falls for a Third Day Before Today’s Clam Testimony
“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 Euro Falls as Merkel Says She and Germany Have Not Softened Their Stance to Contain Contagion
The Euro remained under 1.22 as Merkel says Germany will not soften their views on how to manage contagion. Merkel stated that more central control is needed in order to move forward with a bailout to stem contagion.
Comments »German Bonds Continue to Rise as the Euro Hits a Two Year Low
The Aussie and Kiwi Dollars Rally on China’s Economic Data
China reported economic data that showed growth. Despite it being the slowest growth in years and a sixth consecutive quarter of downside data the Aussie and Kiwi dollars were bot on speculation that growth will pick up.
Comments »Heads Up: The Euro Hits a Two Year Low
The Aussie Dollar Falls on Job Growth Concerns
The jobless rate rose in June as employers in Australia cut payroll slots. As a result Aussie markets and the Aussie dollar fell in overnight trade.
Comments »A Look at the S&P and Currency Correlations
“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 »The Greenback Falls Before the Release of the Fed Minutes While the Aussie Dollar Rises
The Fed Minutes areto be released today, and investors fear weak data prompting central banks to ease. This led traders to sell the Greenback and by the Aussie dollar.
Comments »Investors Find Safety in Sterling
Investors are seeking any safety possible by bidding up bonds and currencies. The latest to get bid up is the Sterling; which has not seen this level since 2008.
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