Posts Tagged ‘ Central Banks ’
It’s still anyone’s guess as to if and when China will allow the Yuan (RMB) to continue appreciating. You can see from the chart below – which shows the trading history for the RMB/USD December 2010 futures contract – that expectations of revaluation have eroded steadily since December 2009. At that time, it was projected [ READ MORE ]
The two biggest event risks for currency traders over the next 24 hours are the Bank of England and European Central Bank monetary policy decisions. The first up to bat will be BoE, followed by the ECB. Both central banks are expected to leave interest rates unchanged but the tone of their statement [ READ MORE ]
Although risk on appears to be the theme in financial markets today with equities up strongly, the price action in the majors indicates that the divergence trade is in full swing. The dollar traded higher against the euro, British pound and Swiss franc, lower against the commodity currencies and unchanged against the Japanese Yen. [ READ MORE ]
After the stock markets closed this afternoon, the Federal Reserve raised the discount rate by 25bp to 0.75 percent, sending the U.S. dollar sharply higher against all of the major currencies. Although the Fed went out of their way to say that this does not equate to a change in their monetary policy outlook, [ READ MORE ]
In January, the Canadian Dollar (aka Loonie) registered its worst monthly performance since June. Many analysts pointed to this as proof that its run was over, after coming tantalizingly close to parity. Others insisted that the decline was only a temporary correction, a mere squaring of positions before the Loonie’s next big run. Who’s right? [ READ MORE ]
Trade of currency has centuries-old history which ascends by times of the Ancient East, and in the Middle Ages when the arisen international banks began to apply the exchange means of payment valid for a presentation to the third parties that promoted increase of flexibility and growth of number of concluded currency transactions, definitive formation [ READ MORE ]
Forex market movement is influenced by many factors. Currency value movement is greatly affected by interest rate. If the interest rate of the country is high, then the currency value also increases. Different economic events and central banks guide those interest rates. This means that economic news can have a dramatic effect on your Forex [ READ MORE ]
The trade purpose in any market is to buy goods cheaper, and to sell more expensively. Does not make exceptions and the international market of currencies — Forex. The goods in this market are exchange rates of the different countries. As well as any other goods, currencies have the price. For performance of calculations between partners, [ READ MORE ]
In 2009, the South African Rand was the world’s second best performing currency, after only the Brazilian Real. Since September, however, it has stagnated, and over the next year, it is projected to fall 10%. What happened?! The Rand represents an interesting case study because it sits at the nexus of several trends. The first is [ READ MORE ]
The euro traded for the first time in 2010 below $1.40 as the Federal Reserve stated on its interest rates decision report today that the multiple economic sectors are improving in the U.S., and economic stimulus used to help the country to emerge from last year crisis will start to be lifted, helping the greenback to gain and bringing risk appetite back to financial markets. EUR/USD falls at the moment, trading at 1.4015. New Home Sales declined to 342k [ READ MORE ]
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