US dollar hits 5-day high against Icelandic krona, Wednesday, September 24, 2008 7:22:11 AM

During early European deals on Tuesday, the US dollar climbed to a 5-day high against the Icelandic krona. The dollar also showed strength against its Scandinavian counterparts.

Against the Swedish krona, the US dollar traded higher during early deals on Wednesday. At 5:30 am ET, the dollar-krona pair reached a high of 6.5855, compared to 6.5766 hit late New York Tuesday. The pair is currently trading at 6.5774.

The Swedish central bank and the Federal Reserve agreed today on a US billion swap facility in order to improve liquidity conditions in global financial markets. The swap facility will expire on January 30, 2009.

Sweden`s economic tendency indicator, which measures business and consumer confidence in the economy, rose marginally to 86.0 in September from 85.6 in August, results of the latest economic tendency survey released by the National Institute of Economic Research, or NIER, showed today.

Further, the survey found that confidence in the Swedish manufacturing sector continued to decrease in September. The corresponding indicator fell to minus 14 from minus 12 in August. In July, the indicator logged minus 11. The September reading was in line with the consensus forecast.

The confidence indicator for the Swedish industry as a whole declined to minus 2 from minus 1 in August and plus 4 in July. On the other hand, the consumer confidence index rose to minus 14.4 from minus 16.5, while economists were expecting the index to fell to minus 17.

The US currency that closed Tuesday`s North American session at 5.6157 against the Norwegian krone edged higher to 5.6239 at 3:55 am ET Wednesday. The dollar-krone is now worth 5.6115.

Against its Danish counterpart, the greenback showed strength during Wednesday`s early deals. At about 4:05 am ET, the pair reached 5.0972, compared to Tuesday`s closing value of 5.0938. The pair is currently quoted at 5.0850.

Denmark`s national statistics office said today that the consumer confidence index rose to minus 11.1 in September from minus 12.2 in August.

The US dollar traded higher against the Icelandic krona during today`s early deals. At 5:35 am ET, the dollar-krona pair hit a 5-day high of 95.49, compared to Tuesday`s North American session close of 94.67.

The Statistics Iceland announced that the Consumer Price Index or CPI rose 14% year-on-year in September, smaller than the 14.5% rise recorded in August, which was its fastest pace since June 1990. Economists had expected for an increase of 14.2%. This was the first decline in the annual inflation rate since January.

The greenback that closed yesterday`s New York deals at 3.4201 touched a low of 3.4083 against the Israeli shekel at 5:45 am ET Wednesday. The dollar-shekel pair is currently trading at 3.4143.

The US dollar largely bounced between 8.17 and 8.10 against the South African rand during Wednesday`s early deals. The dollar-rand pair that closed Tuesday`s deals at 8.2037 is now worth 8.1525.

In central bank action, the Norges Bank is expected to announce its latest interest rate decision at 8am Eastern Time.
The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.

Source | Forex News | http://forexfx-news.blogspot.com/2008/09/us-dollar-hits-5-day-high-against.html

US dollar eases from 2-day high versus South African rand, Thursday, September 25, 2008 1:56:26 PM

After hitting a 2-day high of 8.2153 by about 7:50 am ET, the US currency declined against the South African rand in New York deals on Thursday. The dollar-rand pair dropped to 8.0825 at about 10:35 am ET from Wednesday`s New York session close of 8.1733. As of now, the pair is trading at 8.1200.

The Statistics South Africa reported on Thursday that producer price index rose 19.1% in August, faster than the 18.9% increase in July, but slower than the 19.3% rise expected by analysts. Export prices rose 7.8%, while import prices increased 23%.

Source | Forex News | http://forexfx-news.blogspot.com/2008/09/us-dollar-eases-from-2-day-high-versus.html

Pound/Euro at 1 week high, GDP figures tomorrow

Wednesday 24th October 2012
Good afternoon. In this afternoon's post I'm going to take a look at the EU numbers that have pushed GBP/EUR rates up, and also have a look at what effect tomorrow's UK GDP figures could have on exchange rates. Don't forget, if you're looking for the best exchange rates you can send me a free enquiry, and have a no obligation consultation on your requirements, find out more about our service and the options available to you.

Pound hits 1 week high against Euro, GDP figures tomorrow

After weeks of decline, there was some good news for GBP/EUR buyers this morning, as negative data from Europe weakened the single currency and pushed rates up by a point. The disappointing economic data from the euro zone included poor inflation numbers from Germany and the EU, along with a consumer confidence survey that was much worse than expected.

These numbers weakened the Euro, and helped push GBP/EUR rates up by over 1 cent. We now have the best buying levels we’ve seen in over a week; however it could be the case rates come back down again, depending on tomorrows UK GDP numbers.

What’s happening with the Pound? 

The poor numbers from Europe overshadowed some negative UK data this morning which the markets didn’t react to. There was a surprise fall in British factory orders, with the CBI industrial trend's survey showing that demand had fallen unexpectedly. The number was -23 against a forecast for -6, but the poor figures didn’t really weaken the Pound.

This was because Sterling has been given a little boost by the speech yesterday evening from Bank of England Governor Mervyn King.

He said that policymakers would have to think long and hard about conducting further Quantitative Easing measures. This now casts doubt on whether or not they will decide to opt for more QE in November.

Much will depend on tomorrows UK GDP figures. UK GDP data for the third is released tomorrow, and is expected to show the economy pulling back out of recession, according to forecasts.

If true, it will probably only show small growth anyway. The Quarterly forecast is for a 0.6% growth, and if the number is this or higher, we could see gains for Sterling.

In my opinion there’s more chance of a fall in rates, as a poor GDP number report will put pressure on the BoE to conduct more QE. However as stated above, his comments yesterday cast doubt on when this will happen. He also said that QE was reaching its limits of effectiveness.

Summary 

So for the coming weeks, it’s the shadow of QE that will likely continue to drive exchange rates. As always things can go either way, but I think there’s more chance of the Pound weakening than it is to suddenly gain in value.

Any growth figures will only really show that we’re barely out of recession, hardly the huge upswing in productivity that the economy needs to return to sustainable growth.

If you need to buy or sell Euros or indeed any major international currency, send me a free enquiry today. I can discuss your requirements, explain the options you have to protect against rates moving away, and the rates we can provide are up to 5% better than available at banks and other financial institutions.

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Source | Foreign Exchange Rate Forecasts | http://foremostcurrencygroup.blogspot.com/2012/10/poundeuro-at-1-week-high-gdp-figures.html

US dollar eases from 1-week high against Mexican peso, Thursday, September 25, 2008 3:26:12 PM

After hitting a 1-week high of 10.8615 by about 8:00 am ET, the US currency lost ground against its Mexican counterpart in New York afternoon deals on Thursday. Currently, the greenback is trading at 10.70 versus the Mexican peso, compared to Wednesday`s closing value of 10.8500.

Source | Forex News | http://forexfx-news.blogspot.com/2008/09/us-dollar-eases-from-1-week-high.html

Euro Rises to Two-Week High on Spain Bailout Request

The euro rose against most of its major counterparts after European governments agreed to provide Spain with a bailout loan.

The 17-nation currency climbed to a two-week high after Spain asked for as much as 100 billion euros (6 billion) to save its banking system, making it the fourth member in the currency bloc to seek a rescue. The dollar and yen fell on decreased demand for refuge assets as Asian shares rallied.

The euro reached .2671, the highest since May 23, before trading at .2631 as of 1:36 p.m. in Tokyo, 0.9 percent higher than the June 8 close in New York. It jumped 1.1 percent to 100.59 yen. The dollar added 0.2 percent to 79.64 yen.

The MSCI Asia Pacific Index of shares advanced 1.8 percent.

Seven months after winning a landslide victory, Spanish Prime Minister Mariano Rajoy was forced to abandon his bid to recapitalize banks without external help. Foreign investors had cut holdings of the nation’s debt amid concern banks’ bad loans may overwhelm public finances, driving borrowing costs to near euro-era records.

Futures traders had increased their bearish bets on the euro to an unprecedented level, according to figures from the Washington-based Commodity Futures Trading Commission. The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro, so-called net shorts, compared with those on a gain was 214,418 on June 5, the most on record going back to 1999.

“The growth outlook for most of the euro area is already bleak,” Guillermo Felices, head of European currency strategy in London at Barclays Plc, and Yuki Sakasai, a New York-based currency strategist, wrote in a research note. “One way to spur growth would be the ECB easing to weaken the euro. Otherwise, without growth, the euro will remain under pressure.”

Source | Forex News Paper | http://forexnewspaper.blogspot.com/2012/06/euro-rises-to-two-week-high-on-spain.html

US dollar advances further to 4-day high versus Israeli shekel, Friday, September 26, 2008 1:33:16 PM

Extending early European session`s uptrend, the US currency advanced to a 4-day high of 3.4438 against its Israeli counterpart at about 6:15 am ET. Thereafter, the pair ticked down slightly and as of now is worth 3.4242. The dollar-shekel pair closed yesterday`s deals at 3.4100.

Source | Forex News | http://forexfx-news.blogspot.com/2008/09/us-dollar-advances-further-to-4-day.html

Yen Gains to Six-Week High Versus Euro on Growth Outlook

The yen climbed to the strongest level in almost six weeks against the euro and gained versus all its most-traded counterparts as signs global growth is slowing underpinned demand for the relative safety of the currency.

The dollar rose versus all its major peers except the yen after South Korea unexpectedly lowered interest rates, while the euro slid below .22 for the first time since July 2010. The Bank of Japan (8301) refrained from expanding stimulus, adding to haven demand. China releases quarterly gross domestic product data today. Australia’s dollar slid after employers cut jobs.

“The Bank of Japan monetary-policy decision didn’t lead to any significant new expansion in the BOJ balance sheet or something the market would consider more aggressive quantitative easing,” Shahab Jalinoos, a Stamford, Connecticut-based senior currency strategist at UBS AG, said in a telephone interview. “The market was disappointed, and the yen clawed back some recent losses.”

The yen gained 0.9 percent to 96.72 per euro at 1:15 p.m. New York time after appreciating earlier to 96.43, the strongest level since June 1. Japan’s currency advanced 0.6 percent to 79.30 per dollar. The euro weakened 0.4 percent to .2196 after sliding to as low as .2167.

Japan’s currency rose versus the dollar as the extra yield investors receive for investing in two-year U.S. Treasuries versus comparable Japanese government bonds fell to the lowest in a month, limiting dollar-denominated assets’ appeal. The yield spread was 16 basis points, or 0.16 percentage point.

Source | Forex News Paper | http://forexnewspaper.blogspot.com/2012/07/yen-gains-to-six-week-high-versus-euro.html

US Election effect on exchange rates / GBPEUR hits new high

Wednesday 7th Novmeber 2012
Good afternoon everybody. Things have moved around in the currency markets quite a bit today. We've had the US election dramatically affect the value of the US Dollar and riskier currencies. We have also seen Pound/Euro rates hit a new one month high due to poor UK data. In my post today I'll take a look at the election, then the Pound/Euro situation. I'll also have a quick look at Thursdays central bank decisions and how this might affect exchange rates going forwards.

US Election – effect on exchange rates

It dominated the news today, so I’m sure you all know that Barack Obama has won a second term as president of the United States. There are many sources where you can read about the election, so here today I will only focus on the effect it has had on exchange rates.

 Effectively, it has weakened the US Dollar significantly, and pushed rates up above .60 before falling back away. The reason the USD weakened is the fact is was sold off fairly comprehensively once the results were known. This is because the victory for Barack Obama in the U.S. presidential election is seen ensuring easy monetary policy.

It has calmed the markets now there is more political certainty, and the fact Obama won means economic policy will remain the same and the Federal Reserve's easy monetary policy is likely to stay for some time to come. This weighed on the dollar and gave a boost to commodity currencies such as the Aussie Dollar and Canadian Dollar. Gains were limited however over a little uncertainty over Thursdays Bank of England decision, which I’ll cover in more detail in a moment. First, the Euro…

Pound hits new 1 month high against Euro 

Initially when the markets opened on Wednesday Pound/Euro rates dropped back away. This was due to the move into riskier currencies, as I mentioned in the election paragraph above. This gave the Euro some strength and it became more expensive to buy.

The drop didn’t last long though, as at 10am this morning we saw the latest German Industrial Production figures, and they were far worse than expected. The German industrial output data also lowered growth forecasts from the EU Commission, and this weighed on the single currency ahead of a crucial Greek parliament vote on reforms.

The net result? A weakening Euro and a spike of nearly one sent from the low to the high today. This shows how quickly things can change in the markets, and on a purchase of €250,000 today, the cost has varied by £1600.00 this afternoon alone.

It’s good news for Euro buyers, as rates are the best in over a month, and only a few points away from the best in over 4 years.

If you need to buy Euros in the next 6 months, get in touch with me by clicking here.

Bank of England announcement Thursday 

The next main event is the Bank of England decision on interest rates and Quantitative Easing at midday Thursday. A few weeks ago, everybody thought it was certain more QE would be announced. In the last few weeks though, better UK data has greatly reduced the chance of this happening.

Of course nobody knows for sure, and some MPC members are split on what to do.

The reduced chance is the reason the Pound has strengthened. Things can turn the other way very quickly though, so if they do announce further stimulus, expect the Pound to fall. Personally I think they will hold fire on more easing until early next year.

ECB also meet on Thursday

The European Central Bank also meets on Thursday and while no rate cuts are expected, growing evidence that they are in the midst of a recession is likely to boost expectations of more easing in the coming months. Watch out for the press conference at 13:30pm Thursday, as any comments positive or negative about the Euro could quickly affect GBP/EUR rates.

That’s all for now, remember to send me a free enquiry if you need to secure the best exchange rates

 

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Source | Foreign Exchange Rate Forecasts | http://foremostcurrencygroup.blogspot.com/2012/11/us-election-effect-on-exchange-rates.html