Swiss Franc Tumbles on Intervention Fears

The Swiss currency finally felt the central bankers pressure and declined considerably versus most of its main trading partners’ currencies, on speculations that measures will be taken by the financial authorities to avoid the franc to gain.

The Swiss franc dropped even versus the European single currency as some of the bloc’s members are providing negative economic data, evidencing that the Swiss National Bank pressure to halt the franc’s rally is taking effect. The pound was one of the biggest winners versus the franc as the U.K.’s inflation rose beyond forecasts.

GBP/CHF traded at 1.6886 as of 22:31 GMT from a previous rate 1.6737 yesterday.

If you want to comment on the Swiss franc’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Euro Slides After German Sentiment Report

The euro tumbled today versus most of the

key-currencies in Europe after Germany published an important economic confidence report with worse-than-expected data, declining attractiveness for the single currency as some of its member countries struggle with a growing budget deficit.

The European single currency dropped versus most of the 16 main traded currencies today as the outlook for the economic bloc declined considerably after theGerman ZEW Economic Sentiment report brought negative data to traders, which opted for other currencies in the region and overseas as Germany is the main economy currently using the euro. Greece’s deteriorating budget deficit is still a reason of big concern and is affecting the appeal for the euro, as the European Central Bank affirmed that further measures should be taken by the Southern European nation to solve its growing budget crisis. The pound climbed versus the euro as the U.K. posted a higher than expected annualized inflation rate.

Speculations that a slow down in the Eurozone recovery pace are already affecting the outlook for the currency, according to analysts. The region still has low interest rates, and the disparities among the bloc’s members are influencing traders who would rather invest in other regions for the moment.

EUR/USD traded at 1.4276 as of 17:26 GMT from a previous rate of 1.4391 yesterday. EUR/GBP declined to 0.8715 from 0.8815.

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Canadian Dollar Tumbles on Rates Outlook

The Canadian dollar fell today after the nation’s central bank left interest rates unchanged at an all time record low, declining rate hikes speculations despite the favorable economic data published in Canada during the past few weeks.

The loonie dropped versus most of the 16 most traded currencies today after the central bank affirmed that interest rates will remain unchanged until June, decreasing sharply the attractiveness for the loonie as traders expected the good performance of the Canadian economy to produce more immediate results in terms of interest rate hikes. The Bank of Canada also made a statement against the loonie’s strength, which, according to its officials, is a threat to the economic growth in the North American nation, forcing the loonie down specially versus its a stronger greenback that advanced versus all of the 16 main traded currencies.

The lack of a hawkish tone in Canada’s central bank declarations affected the outlook for the loonie, which have been gaining on speculations that stronger economic conditions in the country would allow the BOC to raise interest rates sooner than expected, but its dovish position and against a strong loonie will certainly be an obstacle for loonie’s further advances.

USD/CAD traded at 1.0320 as of 15:28 GMT from a previous rate of 1.0255 in the intraday comparison. CAD/JPY traded at 88.24 from 88.45.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Swiss Franc Climbs Despite Intervention Warning

The Swiss franc gained versus several

key-currencies today despite the nation’s central bank concerns regarding the strength of its currency, which already was expressed previously in statements mentioning eventual future interventions to halt the franc’s rally.

Even if the Swiss National Bank President Philipp Hildebrand stated last week that franc’s fluctuations will be monitored closely, expressing concern with the Swiss currency high rates, the franc advanced today versus the euro as traders feel it is still undervalued versus the European single currency. According to analysts, the SNB will impose more than verbal interventions anytime soon as long as the franc continues bullish.

EUR/CHF traded at 1.4740 as of 21:31 GMT from an opening rate of 1.4753 yesterday.

If you want to comment on the Swiss franc’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Real Rebounds on Brazilian Stock Market

After a week of losses versus most of the main traded currencies in

foreign-exchange markets, the Brazilian real advanced today fueled by a positive performance in commodities and equities markets.

The Brazilian real gained today versus the yen and the U.S. dollar as demand for commodities and optimism regarding the nation’s economy allowed the South American currency to revert a negative trend that lasted five consecutive days. A great sum of capital inflows to Brazilian stocks also influenced on the good performance of the real this Monday.

USD/BRL traded at 1.7661 as of 19:54 GMT from an opening rate of 1.7715.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Pound Climbs on House Prices, Optimism

The U.K. currency profited today from an increase in the nation’s house prices, fueling even further speculations that the recession might be ending in Britain, attracting investors to purchase

pound-priced assets in a day of bullish equities markets in London.

In a day of predominant risk appetite as commodities and equities advanced in the U.K., the pound profited from an optimistic scenario in the country as Rightmove Plc, a leading British real estate website, indicated that house prices increased last month, adding evidences for speculations that Bank of England’s current asset purchase program may expire next month and not be extended further, which would certainly allow the pound to climb in foreign-exchange markets. The euro posted a slight decline versus the sterling as traders remained skeptical regarding Greece’s budget deficit and the European Central Bank’s capability of rescuing the Southern European nation from a financial collapse.

Several analysts believe that the pound may outperform multiple key-currencies in foreign-exchange markets this year, as the recession fades away and according to some speculations, the country’s currency would be undervalued. If positive data continues to be published the pound may experience a sharp rally, specially versus a less attractive euro in the following weeks.

EUR/GBP traded at 0.8803 as of 16:14 GMT from an opening rate of 0.8821 when markets opened yesterday. GBP/USD climbed to 1.6333 from 1.6258.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Canadian Dollar Continues Bullish Pattern on Commodities

The Canadian dollar started another week trading high versus its U.S. counterpart as markets that influence its rates rallied in the start of this week, specially energetic and metallic commodities, before tomorrow’s interest rate decision in the North American nation.

After a rather bearish past week for the crude oil which posted consecutive days of losses as risk aversion rose in Europe and China, the Canadian dollar benefited from a rebound in the oil rates today, as future contracts advanced for the first time in six days. Canada is also a metallic commodity exporter, and as the copper advanced together with stocks in Europe, the loonie advanced significantly versus the greenback in a rather calm trading session due to a bank holiday in the United States. Commodities and equities rates fueled by risk appetite are maintaining the Canadian currency among the best performers this year in foreign-exchange markets.

Analysts remain very confident that the rally in commodities will set the loonie to parity with its U.S. counterpart at some point this year, as the global economic recovery is likely to push the oil and metals up, as manufacturing sectors in Canada’s main trading partners are increasing demand for raw materials by the day.

USD/CAD traded at 1.0254 as of 14:49 GMT from a previous rate of 1.0293 when markets opened yesterday. CAD/JPY advanced to 88.44 from 88.07.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Read more!

Read more!

Pound May Climb On Asset Purchase Program Ending

The U.K. currency may be experience a shift on its sentiment as speculations suggest that the current quantitative easing measures used by the nation’s central bank will be terminated, as the country starts to publish positive economic reports, suggesting that the recession may be ending in the British Isles.

This week will be decisive for the pound as inflation yearly numbers are due to be published the next Tuesday, and if forecasts will be confirmed, the numbers are expected to surpass Bank of England’s target below 2 percent for the first time in seven months, fueling even further speculations that quantitative easing measures will be lifted in the U.K. anytime soon this year. The 200 billion pounds used for bond purchasing will have their last part of 25 billion to be used by early February, and the next central bankers’ meeting may already bring better news for the sterling if the country’s monetary policy change its direction.

The pound has been suffering from an insistent recession combined with a struggling financial system and ineffective policies taken by the Bank of England to combat the crisis, but as economic data improves, the pound may advance considerably, since it was one of the currencies who lost the most among the main traded ones in foreign-exchange markets last year.

GBP/USD traded at 1.6277 as of 02:20 GMT from a previous rate of 1.6256 when markets closed last Friday.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Bookmark to:

Read more!

Read more!