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Forex News – Bank of Japan maintains monetary policy

Posted on February 14, 2013 at 7:54 am GMT

The yen weakened against the dollar after the Bank of Japan announced its monetary policy remains unchanged. The overnight call rate target was also maintained as widely expected, at a range of zero to 0.1 percent by a unanimous vote. The central bank also held off on expanding its asset purchase programme. The central bank however did raise its assessment of the economy, as the yen’s recent declines and budding signs of recovery in global demand offered some relief to [..]

Forex News – Dollar unchanged after US retail sales

Posted on February 13, 2013 at 3:04 pm GMT

The dollar was little changed after US retail sales data as the G7 statement dominates markets today. The retail sales report released on Wednesday in early US session trading showed a 0.1 percent rise in January. This was considered tepid and expected, although it was the third consecutive increase and follows from a 0.5 percent increase in December. Helping support retail sales has been an improving labour market, giving American consumers more disposable income and more confidence to shop. It [..]

Forex News – Sterling slides to 6-month low after dovish BOE Inflation Report

Posted on February 13, 2013 at 1:27 pm GMT

Sterling tumbled to a new six-month low of $1.5532 since the 10:30GMT release of the Bank of England quarterly Inflation Report on Wednesday. Dovish comments from BOE Governor Mervyn King accelerated the decline. The pound is down 0.6 percent against the dollar so far today. The BOE governor said that inflation will stay higher for longer and the UK economy’s recovery was slow but sustained. The central bank extended the time frame for inflation returning to target to early 2016, [..]

Forex News – The effect of the G-7 “statement”

Posted on February 13, 2013 at 7:53 am GMT

The yen has had a roller coaster ride ever since the Group of Seven nations (G-7) issued a statement on Tuesday, whose main aim was to calm market fears of a threat of a currency war. However, the statement was first interpreted to approve Japan’s policies for weakening the yen. Then it was said the statement was misinterpreted and was not actually an endorsement of Japan’s efforts to have a cheaper currency. These conflicting views sent the yen first tumbling [..]

Forex News – Sterling drops to 6-month low

Posted on February 12, 2013 at 10:11 am GMT

Sterling extended losses in early London session trading on Tuesday, sliding to a six-month low against the dollar. A weak UK economy and a grim outlook on its recovery are weighing on the pound recently. The pound fell 0.3 percent on the day to reach $1.5572, its lowest level since August 5 just before 0930 GMT when UK inflation data was released. The euro rose 0.3 percent to 86.02 pence, after having gained more than 1 percent against the pound [..]

Forex News – G7 reiterate commitment to market exchange rates

Posted on February 12, 2013 at 9:10 am GMT

As markets focus to the G20 meetings of finance ministers and central bankers in Moscow this week, G7 officials are trying to calm markets who are concerned about currency wars as certain countries are attempting to weaken their currencies. Japan has been under criticisms recently after the sharp weakening of the yen. Japanese Prime Minister Shinzo Abe’s push for more aggressive monetary policy has had a tremendous effect on the currency which has lost almost 20 percent in the past [..]

Forex News – Swiss franc dips as SNB defends 1.20 CHF cap

Posted on February 11, 2013 at 3:12 pm GMT

The Swiss franc weakened against the dollar and euro on Monday in reaction to comments from policy markers about the Swiss National Bank’s commitment to defend the cap on the franc. Back in September 2011, the SNB imposed a 1.20 franc floor in the EURCHF exchange rate in an effort to limit the appreciation of the Swiss currency at the height of the crisis when euro was tumbling and demand for the safe haven franc was high. Today, SNB board [..]

Forex News – Sterling drops off 2-week high versus euro

Posted on February 11, 2013 at 12:59 pm GMT

The British pound pulled back from a two-week high against the euro during London session trading on Monday. After a sharp rally last week, the pound was due for a correction as investors booked profits. Sterling is down 0.8 percent as the euro climbed to 85.37 pence, giving the EURGBP pair a rebound from a two-week low of 84.46 struck on Friday. Euro weakened against the pound after comments by European Central Bank President Mario Draghi on Thursday after he [..]

Forex News – EU leaders agree on bloc’s first budget cuts

Posted on February 10, 2013 at 9:07 pm GMT

The European Union budget deal was finalized at the EU Summit in Brussels on Friday after around 24 hours of marathon talks by EU leaders on belt-tightening, while maintaining spending on farm subsidies and infrastructure. This was the first ever budget cut in the Union’s 56-year history. EU leaders of the 27 member countries agreed on 34.4 billion euros of cuts until the end of this decade, meaning EU government will contribute slightly less to this budget over the next [..]

Forex News – Sterling strengthens against euro

Posted on February 8, 2013 at 3:30 pm GMT

Sterling was one of the best performing G10 currencies this week, especially against the euro. This was mainly due to the differing monetary policies of the Bank of England and European Central Bank. The Bank of England announced on Thursday it left the key interest rate at a record low 0.50 percent and maintained the asset- purchase program at 375 billion pounds. The market was expecting the incoming BOE governor Mark Carney to be more aggressive on policy but in [..]

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