Posted on 14 February 2012.
Major events to affect the trading of the pair EUR/USD for the week ending February 17th, 2012 are as under:
On Monday, in euro zone, data on German wholesale price index was released was Switzerland published its report on producer and import prices.
On Tuesday, in euro zone, Greece released its figure on Gross Domestic Product. In France data on non-farm payrolls was reported while Germany published its ZEW survey on current situation. Data on industrial production with ZEW survey for economic sentiment was released for the single currency region.
On Wednesday, February 15th, 2012, Germany, France and Italy will report their data on Gross Domestic Product while a separate report on GDP will be published for the single currency region. Data on euro zone’s trade balance will also be reported on Wednesday. In United States several economic indicators and reports will be published which will include data on mortgage approvals, consumer price index, industrial production, capacity utilization, housing market index and EIA’s data on crude oil, gasoline and distillate inventories. US Federal Reserve will also release the minutes of its latest monetary policy meeting.
On Thursday, in euro zone, data on Greek and Spanish GDP will be published while Italy will report its figures on country’s trade balance and current account. In United States, data on housing starts, continuing claims, building permits, producer price index and initial jobless claims will be reported. US Federal Reserve’s chairman Ben Bernanke will also address at an event in Arlington.
On Friday, February 17th, 2012, data on German producer prices will be reported in the euro zone while as separate report on current account of the single currency region will be published. Data on construction output will also be reported in euro zone. United States will report its data on consumer price index while American Petroleum Institute will publish its monthly report.
Posted in Euro News
Posted on 26 January 2012.
US dollar declined against its major rival currencies on Wednesday as the US Federal Reserve announced to keep interest rates at their lowest for the period of more than one year. In statement released by Federal Open Market Committee it was stated that in reaction to economic conditions the federal funds rate will be maintained at it’s lowest till 2014 at least. Economists are of the opinion that the move of low interest rate will allow the central bank to expand its quantitative easing program.
Some of the FOMC members however gave an impression that there is chance of increase in interest rate late this year and of course were not among the ones who voted in favor of low interest rate.
Senior forex strategist David Watt from RBC Capital Markets commented, “The subsequent announcement that six FOMC members clearly disagreed with the late 2014 statement, with three members looking for policy firming by late 2012 and three by late 2013, the bulk of opinion was toward 2014 and 2015. Clearly there are keen differences of opinion, which seems somewhat less outright dovish compared to the earlier statement.”
The dollar index DXY which tracks the greenback’s movement against its six major counterpart currencies fell to 79.563 on Wednesday as compared to 79.853 on Tuesday’s late trading hours.
The euro gained to 1.3091 against the US dollar on Wednesday as compared to 1.3026 on Tuesday’s North American trading session.
Among other currencies, the British Pound advanced to 1.5645 against the US dollar on Wednesday as compared to 1.5605 on late Tuesday. Against the Japanese yen, the greenback traded at 77.78 as compared to 77.74 on Tuesday while the Australian dollar gained 1.2 percent versus the US dollar to 1.0595.
Posted in US Dollar News
Posted on 26 October 2011.
US dollar surged on Tuesday as bearish sentiments dominated US stock markets. The Dow Jones Industrial Average fell 1.74 percent or 207 points to close at 11,706.62. Standard & Poor’s 500 index declined 2 percent or 25.14 points to close at 1,229.05 while NASDAQ Composite plunged 2.26 percent or 61.02 to 2,638.42 points.
The single currency weakened after the news that meeting of European financial officials which was to be held on Wednesday was cancelled. Currency Strategist Sebastian Galy from Societe Generale commented, “Markets are increasingly nervous ahead of the Wednesday EU meeting, the buy-on-dips trading environment remains in effect.” The euro declined to 1.3921 against the greenback on Tuesday as compared to 1.3934 on Monday’s North American trading session. Investors were also mixed about the 17-nations shared currency as the German Chancellor Angela Merkel was expected to present the proposal for contribution of 440 billion euro equivalent to $600 billion in European Financial Stability Facility. The contribution is expected to leverage EFSF up to 1 trillion euro.
The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies jumped to 76.154 on Tuesday as compared to 76.082 on Monday’s late trading hours. In United States investors were looking up to FOMC meeting scheduled on Thursday.
Among its other counterpart the US dollar heavily gained versus Canadian dollar as the Bank of Canada decided to keep the interest rates unchanged at 1 percent. The US dollar gained to 1.0145 versus the Canadian dollar on Tuesday as compared to 1.0029 on late Monday.
The British Pound traded at 1.6013 against the greenback as compared to 1.5984 on Monday while against the Japanese Yen the US dollar fell to 75.92 as compared to 76.06 on late Monday.
Posted in US Dollar News
Posted on 07 September 2011.
US dollar gained on Tuesday against its major counterpart currencies despite the news that Swiss National Bank decided to set a floor on the euro exchange rate against the Swiss franc. The 17-nations shares currency took heavy beating and dropped below the level of $1.40 in reaction to which greenback benefited the most. The euro fell 0.6 percent against the US dollar on Tuesday whereas touched its intraday high of 1.4218 against the US dollar. The euro however gained versus the Swiss franc to 1.20 on Tuesday as compared to 1.12 on Monday’s European trading session.
One of the major reasons for the appreciation of single currency against the Swiss franc was the following statement issued by Swiss Central Bank:
“The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development, with immediate effect, it [the SNB] will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities.”
The dollar index DXY which measures the greenback’s movement against its major rival currencies surged 0.9 percent to 76.993 on Tuesday. The US dollar surged 9.7 percent against the Swiss franc to 86.23 which also happens to be its biggest gain in single day since 1991.
The US dollar also soared 1 percent against the Japanese Yen to 77.69 on Tuesday. Among other currency the British Pound also fell 1 percent to 1.5938 against the US dollar while the Australian dollar dropped 0.23 percent to 1.0490 versus the greenback despite the decision of Australian Central Bank to keep its interest rates at record lows.
Posted in US Dollar News
Posted on 06 September 2011.
List of major events that could affect the trading of the pair EUR/USD for the week ending September 9th, 2011 are as follows:-
Yesterday on Monday, markets in United States remained closed in observance of the Labor Day. In euro zone, official data on retail sales was released along with reports on service sector growth and investor confidence.
Today on Tuesday September 6th, 2011, Institute of Supply Management will publish its report on service sector activity while in euro zone revise data on gross domestic product for second quarter will be released. Moreover, Germany will also report its official data on factory orders.
On Wednesday September 7th, 2011, Federal Reserve Bank of Chicago’s President Charles Evans will address publicly at an event which will be closely watched to get hints on future direction of monetary policy. The US Federal Reserve will also publish its Beige Book on Wednesday.
On Thursday, September 8th, 2011, United States will report its weekly data on initial jobless claims along with data on crude oil inventories and country’s trade balance. President Obama will also address Congress on country’s employment situation. In euro zone, ECB will release its key interest rate which will be of importance for exchange rates.
Posted in Euro News
Posted on 10 August 2011.
US dollar remained under pressures on Tuesday as negative sentiments for the greenback increased on indication of sluggish US economy by Federal Reserve. The US Federal Reserve further disclosed the decision of status quo for internet rate and said that loosening of monetary policy will be considered around mid 2013.
The weakening of US dollar created for demand for its major rivals especially for the Swiss franc which is considered as the safe haven other then the greenback. The US dollar declined to 70.62 versus the Swiss franc on Tuesday as compared to 75.47 on Monday’s North American trading session. Analysts also foresee further appreciation of Swiss franc against the US dollar. Interest rates are already at their lowest in Switzerland, further it is also believed that investors are not going for franc just because of low interest rates. According to most of analysts only easing in euro zone could bring Swiss unit down.
The dollar index DXY which measures the greenback’s movement against its major counterpart currencies dropped to 74.307 on Tuesday as compared to 74.689 on Monday’s late trading hours.
The single currency also benefited from the declined greenback and the euro gained to 1.4274 on Tuesday as compared to 1.4185 on late Monday.
Against the Japanese Yen, the US dollar dropped to 76.86 on Tuesday as compared to 77.61 on Monday’s late trading hours.
The Australian dollar however, fell against the US dollar to 1.0195 on Tuesday as compared to 1.0241 on Monday’s late trading hours.
Posted in US Dollar News