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European Session – Risk aversion weighs on euro and sterling

Posted on March 1, 2013 at 1:51 pm GMT

The biggest mover of the European Session on Friday was the British pound which tumbled after disappointing UK manufacturing data. The Manufacturing Purchasing Managers’ Index (PMI) showed a drop to 47.9 from a downwardly revised 50.5 in January, which surprised markets as forecast was for a rise to 51.00. The 50 point level demarcates expansion from contraction. As a result, GBPUSD tumbled to a new 2-1/2 year low of $1.5011, the lowest level since July 2010. The UK data which [..]

Forex News – Sterling tumbles on weak manufacturing data

Posted on March 1, 2013 at 10:44 am GMT

Sterling tumbled to a fresh 2-1/2 year low against the dollar on Friday after investors sold off the currency in reaction to disappointing news that the UK manufacturing sector contracted in February despite forecast for an increase. Data from Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) showed a drop to 47.9 from a downwardly revised 50.5 in January, which surprised markets as consensus was for a rise to 51.00. The 50 point level demarcates expansion from contraction. The data was a [..]

Forex News – China factory growth stalls

Posted on March 1, 2013 at 8:36 am GMT

Growth in China appears to have steadied in February, as a manufacturing survey gave a lower reading than expected, but not enough to stir markets. The official purchasing managers’ index (PMI) recorded a dip to 50.1, slightly below a 50.2 forecast and down from the 50.4 reading in January. This figure is still above the 50 point level which demarcates an expansion from contraction. Contributing the sluggish factory growth is a cooling in domestic demand due to firms being hit [..]

Asian Session – Lackluster China PMI keeps market subdued

Posted on March 1, 2013 at 6:30 am GMT

Asian currency markets were quiet, with most currency pairs consolidating. There were no key economic data or news during the session to move the market. There was little reaction to data from China which released manufacturing surveys that showed just marginal growth. The Purchasing Managers’ Index dropped to 50.1 in February, down from January’s 50.4-point level, and below expectations for a reading of 50.5. Meanwhile most investors are waiting on the sidelines ahead of an almost-certain automatic US federal budget [..]

US Session – Dollar up as US Federal budget cuts in focus

Posted on February 28, 2013 at 8:54 pm GMT

The dollar extended gains today after being boosted by encouraging US economic data. There was a drop in new jobless claims last week and also there was a sharp rise in factory activity in the Midwest in February. These give good indications that the world’s largest economy is improving. Meanwhile the dollar is also helped by demand for its safe haven status amidst the political stalemate in Italy. Other risk causing flight to safety in the USD is the looming [..]

European Session – Euro falls as focus remains on Italy

Posted on February 28, 2013 at 12:03 pm GMT

The euro reversed direction in the European session on Thursday to fall to a session low versus the dollar on Thursday as political uncertainty in Italy still dominates the markets. The gridlock after the elections last weekend gives investors little reason to buy the currency. EURUSD fell to as low as $1.3095, and was down 0.3 percent on the day. Against the yen, the euro fell 0.5 percent on the day to 120.58 yen, but stayed some way off a [..]

Forex News – BOJ chief Nominee supports Abe’s aggressive policy easing

Posted on February 28, 2013 at 7:07 am GMT

The yen weakened after the announcement of the new Bank of Japan governor. Japanese Prime Minister Shinzo Abe nominated Haruhiko Kuroda as new BOJ, who was the previous Asian Development Bank chief, and is seen to be in favour of very aggressive monetary stimulus measures. He is expected to begin adopting policy easing measures to help the Japanese economy out of deflation and recession. Kuroda supports increased purchases of government bonds and other domestic assets, to pump cash into the [..]

Asian Session – Yen dips after new BOJ chief nominated

Posted on February 28, 2013 at 6:24 am GMT

The yen weakened after the announcement of the new Bank of Japan governor. Japanese Prime Minister Shinzo Abe nominated Haruhiko Kuroda as new BOJ chief, who was the previous Asian Development Bank President, and is seen to be in favour of very aggressive monetary stimulus measures. He is expected to begin adopting policy easing measures to help the Japanese economy out of deflation and recession. Yen weakened 0.2 percent as USDJPY moved higher to 92.65, while EURJPY peaked at 121.81 [..]

US Session – Euro holds steady above $1.30

Posted on February 27, 2013 at 6:27 pm GMT

The euro held on to a two-day drop near a seven-week low today as concern that Italy’s election deadlock will deepen Europe’s debt crisis. An uncertain outcome over the next few weeks could mean that commitments to reform and austerity measures put in place to help the country out of debt will hang in the balance. Meanwhile an Italian government bond sale met its target amount, although yields rose higher. EURUSD traded between $ 1.3069 and $1.3125. Risk appetite was [..]

Forex News – Yen’s recent rebound a challenge to BOJ monetary policy

Posted on February 27, 2013 at 2:23 pm GMT

The yen has gained sharply this week due to safe have demand amidst the turmoil in Italy which renewed concerns of a debt crisis in the euro zone. The political deadlock in Italy are a wake-up call to investors that Europe is not out of the woods yet. However the rising yen again has posed a challenge to Prime Minister Shinzo Abe, whose demand for drastic monetary easing sent the Japanese currency tumbling in recent weeks. Shinzo Abe who recently [..]

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