It seems that the US dollar has been plagued with a string of poor economic data in recent weeks. Within the last week, the market saw the Philly Fed, Richmond Fed, GDP, and today, Chicago PMI and Consumer Confidence all print at worse than expected levels. This shouldn’t come as a surprise as the US [...]
Archive | October, 2006
Canadian Dollar Buckles for the First Time in Five Years? November Will Tell
As November begins soon the United States Dollar (USD) bulls will attempt what hasn’t done is five years. The Canadian Dollar (CAD) has dominated the exchange rate battle since 2001 against the United States Dollar. 1 USD used to buy over 1.60 CAD back then. Recently the exchange rate was less than 1.10 CAD. After [...]
FOMC Rate Decision Gives Little Hope for Dollar Bulls
The Federal Open Market Committee (US Fed) left the US overnight lending rate unchanged yesterday at 5.25% for the 3rd consecutive time. The currency market had a knee jerk reaction as traders initially found the news to be pro Dollar but very quickly began to sell off as they continued to read through the Fed’s [...]
Aussie Clobbering Euro
Over the past twenty days the Australian Dollar has advanced approximately 600 pips against the euro. The market is expecting Reserve Bank of Australia Governor Glenn Stevens to raise rates above 6% compared to the the euro at 3.25%. Inflation has been higher than the 2-3% Mr. Stevens wants. Rises in commodity prices have also [...]
What is the Most Unlikely Place to See the Word “Bank” Misspelled?
How about on bank notes? The Kazakh Central Bank did not spell the word “bank” correctly when printing their currency on the new notes. * Reuters Article The United States Bureau of Engraving and Printing has made some mistakes before too, and they are valuable if you find them. Takes a look at some of [...]
Kiwi hike again??
One of the highest yielding currencies may hike rates yet again. Over the the past thirty days the New Zealand Dollar has gained a whopping 500 pips against the Japanese Yen with speculation the new interest rate spread will be 7.25% ( Current yeilds: Yen .25% – NZD 7.25% with expectations to rise to 7.5%) Read [...]
Eurozone Current Account Release
On Oct 24th Eurozone Current Account is coming out. This report should interest those concerned with foreign exchange rates because European investors have been flowing out of Europe for the past few months, creating A-typical deficits out of the Euro-zone Current Account. Following this report traders will get some good insight into what is driving [...]
High Demand for High Yield
High yielding currencies show strength over the last few weeks as all make significant gains against their lower yielding counterparts. South African Rand – 8% – See graphic below Hungarian Forint – 7.5% – See graphic below New Zealand Dollar – 7.25% – Chart Australian Dollar- 6% – Chart United States Dollar – 5.25% – [...]
Dollar Advances. US Economy or Flight to Safety?
Last week Federal Reserve vice-chairman Donald Kohn expressed question about rates falling anytime soon. Then Friday payrolls numbers came in better than what traders expeted. This coupled with falling oil prices, after ranging for months, the dollar advances strongly bringing it to levels we have not seen since late July against the euro. But how [...]
Oil Currencies Slip with Falling Oil Prices
As oil prices have been falling in the last week or two, so have the currencies of the heavy oil exporting countries including the Canadian Dollar and the Norwegian Krone.
South Korean Won
Indonesia Rupiah
Iranian Rial
United States Dollar
Malaysian Ringgit
Canadian Dollar
Norwegian Krone
Brazilian Real
UK Pound
Chinese Yuan
Mexican Peso
Colombian Peso