Forex Previews

Forex News – Osborne delivers Autumn Statement, economy to shrink in 2012

Posted on December 5, 2012 at 2:26 pm GMT

The following are highlights from UK Chancellor of the Exchequer George Osborne’s “Autumn Statement” (half-yearly budget) which he delivered today. He warned that growth would be weaker than expected next year. He signalled that he would have to break away from his debt promise and thus the debt to GDP ratio might not be met. BRITISH ECONOMY IS HEALING “It’s taking time, but the British economy is healing. After the biggest financial crash of our lifetimes, people know that we [..]

Forex News – Sterling falls on weak UK services PMI

Posted on December 5, 2012 at 12:04 pm GMT

Sterling fell after disappointing UK services Purchasing Managers’ Index (PMI) data on Wednesday, which raised concerns that the economy could begin contracting again. According to the Markit/CIPS Services PMI declined in November to 50.2 from October’s 50.6. Forecasts were actually for a rise 51.1. The only positive in the data was that the figure was above the key 50 level which denotes expansion phase. The UK service sector is a dominant service sector and thus any slowdown there could put [..]

Forex News – Canadian dollar rises after BOC statement

Posted on December 4, 2012 at 3:01 pm GMT

The Canadian dollar strengthened sharply against the US dollar after the Bank of Canada interest rate decision and policy statement on Tuesday. The Canadian central bank kept the benchmark interest rate unchanged at 1 percent but kept it rate hike bias. Thus an increase in the rate will likely occur despite a soft economy right now. In a statement the BOC said the following: “Over time, some modest withdrawal of monetary policy stimulus will likely be required, consistent with achieving [..]

Forex News – Euro extends gains vs. Swiss franc to hit 6-week high

Posted on December 4, 2012 at 10:54 am GMT

Euro jumped 0.4 percent against the Swiss franc in early European trading on Tuesday, reaching the highest level in six weeks. EURCHF extended gains to 1.2144 from the previous day in reaction to news that the largest banks in Switzerland will launch negative interest rates, and charge a fee for some deposits in francs. The aim is to limit the holdings of Swiss francs by depositors. Switzerland wants to protect its currency from investors seeking a safe haven from the [..]

Forex News – RBA lowers rate by quarter-point to boost economy

Posted on December 4, 2012 at 7:52 am GMT

The Reserve Bank of Australia announced it cut its overnight cash rate by a quarter-point to 3.0 percent following a policy meeting on Tuesday. The last time the rate was at this quarter of a century low was back in 2009 during the global financial crisis. One of the main reasons the central bank decided to lower the rate was due to the fact that the Australian dollar is strong and an elevated currency hurts industries such as manufacturing and [..]

Forex News –Greece announces attractive bond buyback offer

Posted on December 3, 2012 at 2:07 pm GMT

The Greek government announced today that it launching a bond buyback offer where it would spend 10 billion euros to buy back its bonds at a price range above market expectations in order to attract sufficient investor interest. Markets reacted positively to the news, which sent the euro up to a six-month high against the dollar during the European trading session. The bond buyback program is key to reducing the country’s ballooning debt and avoid bankruptcy. It also a requirement [..]

Forex News – China’s economy growing at quicker pace

Posted on December 3, 2012 at 8:52 am GMT

China’s manufacturing PMIs improved in November, signalling the economy is recovering after a seven-quarter slowdown. China’s official manufacturing PMI rose to 50.6 last month, as expected, and up from October’s 50.2. Meanwhile the HSBC final manufacturing PMI came in at 50.5,hitting a 13-month high, better than the flash estimate of 50.4. The 50-point level demarcates growth and contraction. The increase in manufacturing activity since late September gives evidence that the Chinese economy is regaining its vigour after a period of [..]

Forex News – Dollar jumps as risk hurt after soft US data

Posted on November 30, 2012 at 2:01 pm GMT

The dollar strengthened sharply against the euro and the sterling after disappointing US economic data hurt risk appetite and increased demand for safe haven currency. US consumer spending and personal income both gave readings lower than forecast for the month of October. American consumers reduced their spending as personal income growth stalls. Data from the US Commerce Department on Friday shows that consumer spending fell 0.2 percent after a 0.8 percent rise in September. This is the first drop in [..]

Forex News – Sterling firm after rise in UK consumer confidence

Posted on November 30, 2012 at 9:02 am GMT

Sterling edged slightly higher after UK consumer confidence data showed a more than expected increase in November. The Gfk consumer sentiment index produced a reading of minus 22 but this was the highest reading in eighteen months and higher than the previous reading of minus 30. Forecasts were for the index to remain unchanged. The surprise reading which was the strongest since May 2011 is an indication that British people are more optimistic about the economy and their finances. The [..]

Forex News – Cyprus close to a bailout deal

Posted on November 29, 2012 at 9:26 pm GMT

A bailout deal for Cyprus is near, after a preliminary agreement has been reached with international creditors. The deal could be finalized as soon as mid-December first tranche of funds to shore up its banks by the end of January. The Cyprus government is negotiating a loan with 2.5 pct interest. The small euro zone country’s banks are heavily exposed to debt-crippled Greece and as a result could need up to 17.5 billion euros worth of financial aid ($22.6 billion), [..]

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