A successful debt auction by Portugal helped to ease short-term concerns about European sovereign debt and boosted the Euro against most of its rivals. The Bank of Canada hiked rates to 1% and the Canadian Dollar rallying as a result. We also take a look at Japanese orders, UK housing prices, and German trade and industrial production.
The BOJ in its emergency meeting announced an expansion of its loan program – a bit of monetary easing. However, the moves were less than expected by the market and traders bought the Yen after having sold it off late last week and to start Sunday’s trading. Currencies sensitive to risk sentiment and global growth faltered, with the US Dollar and Swiss Franc gaining. US stocks slid increasing risk aversion in the NY session. News Provided by CMS Forex www.cmsfx.com Market Analyst Nick Nasad
The US Dollar slid against its major rivals as higher global equities helped to dampen demand for safe-haven currencies like the US Dollar and Japanese Yen. The weakness in the Dollar overnight was also due to the weak data that has come out this week, which has led to increased speculation that Fed Chairman Bernanke may suggest further quantitative easing during his speech on Friday at the Jackson Hole Symposium. News Provided by CMS Forex www.cmsfx.com Market Analyst Nick Nasad
The Pound rallied as no BOE meeting minutes showed no members voting for an increase in quantitative easing. Other major pairs consolidated as there was a lack of news to trade on. The Canadian Dollar did gain on some merger news, while the Aussie slid. News Provided by CMS Forex www.cmsfx.com Market Analyst Nick Nasad
US jobless claims rose to their highest in 9 months, while the Philly Fed manufacturing index turned unexpectedly negative. The fear of a double-dip recession will rise as a result. Currencies tied to risk appetite like the Australian and Canadian Dollars suffered, and the Dollar slipped sharply against the Yen. The European majors – Euro and Pound – consolidated for the most part, staying with recent ranges, though the UK did post strong data giving the Pound a pop. News Provided by CMS Forex www.cmsfx.com Market Analyst Nick Nasad
The Euro suffered another round of selling as Standard & Poor’s followed up its downgrade of Greece and Portugal yesterday with a downgrade to Spain’s credit rating. That pressured the Euro, though risk sensitive currencies like the Aussie and Loonie managed to gain on today’s session. The FOMC upped its outlook for the economy but kept its pledge to hold rates at their low levels for an extended period helping to boost risk appetite in US equities and oil. Finally, the Pound was pressured by comments on its economy from a former MPC member. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
Uncertainty and risk aversion reigned in the currency markets today as Standard & Poor’s downgraded Greece’s sovereign debt rating to junk status while also downgrading Portugal. That caused a sharp sell-off of Euro’s and other higher yielders and buying of safe-haven currencies like the US Dollar and Yen. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
The Euro slid as Greek bonds came under pressure yet again as there were some worries that Germany will resist the early release of bailout funds for Greece. That gave trader’s angst and they responded by selling Euros. The EUR/USD did find support at 1.33. The Pound meanwhile was a strong performer rallying to just below the 1.55 level vs the greenback on housing prices data. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
The Euro rallies as the Greek government formally asked to receive the bailout funds from the EU-IMF aid package. We also had positive fundamentals from the Euro-zone in the form of the IFO business index and new industrial orders. The Pound slid on weak GDP data, but recovered as risk appetite was stronger in NY trading. In addition to higher US equities the US also posted very strong housing sales data. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
Today’s trading saw several developments including a hawkish BOC statement that boosted the Canadian Dollar, hawkish minutes from the RBA that helped spur Aussie gains, positive fundamental data from the UK and Euro-zone and gains by the Dollar vs the Yen. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
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