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Forex News – Euro plunges after weak German PMI data

Posted on March 21, 2013 at 9:20 am GMT

The euro plummeted against most major counterparts after dismal economic data out of Europe on Thursday. Germany, which is the euro zone’s largest economy and seen as the region’s powerhouse, published weaker than expected data with regards to its manufacturing activity. German manufacturing purchasing managers’ (PMI) index fell to a seasonally adjusted 48.9 in March from a February’s final reading of 50.3. Forecasts were for the index to rise to 50.5. A reading above 50.0 on the index indicates industry [..]

Forex News – Sterling rises after UK jobs data and BOE meeting minutes

Posted on March 20, 2013 at 10:06 am GMT

Sterling jumped higher against the dollar and euro after much better-than-expected UK employment data on Wednesday. Data showed the lowest claimant count level since June 2011, giving optimism for the British economy. The official unemployment rate remains steady at 7.8 percent. The data come ahead of a key budget announcement by UK Chancellor of the Exchequer, George Osborne. GBPUSD recovered losses made early in the London session when the pair fell to a low of $1.5026 and subsequently rose after [..]

Forex News – Higher UK inflation may not prevent more QE

Posted on March 19, 2013 at 1:56 pm GMT

The British pound received a slight boost against the dollar and euro on Tuesday after UK inflation data showed an increase to a nine-month high in February . GBPUSD hit an intraday high of $1.5143 and EURGBP fell to 0.8551. Markets saw this rise in inflation as reason that the Bank of England may shy away from adopting looser monetary policy. These stimulus measures that involve asset purchases tend to weaken a currency. However, some analysts do not think it [..]

Forex News – Confidence in US home building declines

Posted on March 18, 2013 at 6:23 pm GMT

Data from the US showing confidence amongst home builders fell in March as there are expectations of sales of single-family homes to drop. A survey by the National Association of Home Builders (NAHB) reported a decline to 44 points in the index, the lowest level since October. This was a second straight monthly drop from February’s 46 points. “In addition to tight credit and below-price appraisals, home building is beginning to suffer growth pains as the infrastructure that supports it [..]

EU Summit – highlights

Posted on March 15, 2013 at 1:26 pm GMT

The following are highlights of comments made by German Chancellor Angela Merkel at the EU leader summit in Brussels on Friday on Cyprus and comments by European Council President Herman Von Rompuy on Syria: German Chancellor Angela Merkel on possibility of Cyprus bailout: “If you consider that at a certain point in time, Cyprus could not finance itself, then… you don’t want to reach such a point, from a political point of view. “But one cannot say that just because [..]

Forex News – Euro rises to $1.31 after softer US data hurts dollar

Posted on March 15, 2013 at 1:07 pm GMT

The euro jumped 0.4 percent against the dollar to hit $1.3106 after below-forecast numbers from the New York State’s manufacturing index prompted investors to take profits on the recent rally of the dollar. The broadly weaker dollar also helped sterling extend gains to $1.5175, while dollar dropped against the Swiss franc to 0.9378 from 0.9430, reaching the lowest level since March 1st. A report from the New York Federal Reserve said the “Empire State Manufacturing Index” showed a slower expansion [..]

Forex News – Kuroda approved as new Bank of Japan governor

Posted on March 15, 2013 at 7:41 am GMT

The Bank of Japan has a new chief after the Japanese parliament approved the nomination of Haruhiko Kuroda, who has pledged to do whatever it takes to reflate the Japanese economy and bring inflation up to a 2 percent target. 68-year-old Kuroda is a strong proponent of bolder monetary easing in order to stimulate the sluggish Japanese economy. Deflation, which results in falling prices, discourages investment and spending by businesses and consumers, and makes debts more difficult to repay. Mr [..]

AUD boosted by above-forecast jobs numbers

Posted on March 14, 2013 at 7:58 am GMT

The Australian dollar surged to the highest level in over a month against the US dollar in early Thursday trading after being boosted by a strong employment report. Data showed that 71,500 jobs were added to the Australian economy in February, which was a huge jump and the biggest rise in total employment in more than a decade. The numbers were well above expectations since most analysts expected only about 9,000 jobs to be added last month. February marked the [..]

Forex News – Dollar surges after strong US retail sales

Posted on March 13, 2013 at 12:51 pm GMT

The dollar surged against the yen and euro after much better-than-expected retail sales numbers from the US. Sales rose by the most in five months thanks to an improved labour market and stronger household finances. February sales were reported up a very solid 1.1 percent, beating the consensus expectation of a 0.5 percent increase and up from January’s 0.2 percent gain. The sales data represents the change in the total value of sales at the retail level. It is the [..]

Forex News – Sterling tumbles after soft UK manufacturing data

Posted on March 12, 2013 at 9:49 am GMT

Sterling made a remarkable move against the dollar, plunging 0.4 percent within minutes of disappointing UK manufacturing data, which highlights the weakness the British economic recovery is still facing. According to the Office for National Statistics, manufacturing output declined 1.5 percent on the month in January, despite forecasts for it to remain flat at 0 percent. This was a drop from a 1.5 percent increase recorded in December. Meanwhile, the wider reading of industrial output, which includes energy production and [..]

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