Posts Tagged ‘Forex Trading’

Dollar witnesses a two-week low

Friday, October 9th, 2009

The dollar witnessed a two-week low as compared to the euro as signs the international economy is improving increased demand for the high-yielding material goods. After the employment suddenly boosted in the month of September, the Australia dollar increased to a fourteen-month high.

Phil Burke who is the main dealer of the foreign-exchange, spot trading at JP Morgan Securities at Sydney said that according to the people the tough time is over and it does makes sense. But on the whole the dollar is still in a mid term downtrend. In Tokyo, the dollar decreased $1.4769 per euro at 11:49 a.m. from $1.4690 in New York. Previously, it reached $1.4773 which is the lowest since 24th September.

The euro didn’t changed at 130.17 yen, but the dollar came down from 88.60 yen to 88.21 yen. Yesterday it came down to as low as 88.01 which is the weakest in over eight months. The MSCI Pacific Index of the local shares increased 1.1 percent, and Nikkei 225 Stock Average of Japan added 0.1 percent. The gold also increased to the record high for the third consecutive day. The dollar turned down as the survey of the economists estimated the German industrial production extended 1.7 percent in the month of August following 0.8 percent downfall in the month of July.

Berlin’s Economy Ministry is all prepared to the pass the report today. In a different survey estimate, the production of the factory increased 2.1 percent in the month of August after 9.2 percent downfall in the month of July. The data will be revealed tomorrow in Tokyo. Adam Carr who is a senior economist at ICAP said that the international economy is bouncing back.

The European Central Bank will be holding their chief refinancing rate which is at a record low of one percent, and Bank of England is also keeping their chief rate very low at 0.5 percent. Both the central banks will be having a meeting today. According to the experts, the standard rate of the Federal Reserve will be increasing in the third quarter of 2010. The dollar of Australia increased 1.2 percent to the 90.23 American cents which is the maximum level since the month of August 2008 from yesterday’s 89.11 cents in New York.

According to the statistic agency in Sydney, the number of people employed increased to 40,599 from the previous month of August 2008. The unemployment rate also came down 5.6 percent from 5.7 percent. According to the Finance Ministry of Japan the country’s current-account surplus increased 10.3 percent to 1.170 trillion yen in the month of August from the previous year.

The dollar of New Zealand increased to 74.01 American cents from 73.63 yesterday. Previously it reached 74.20 cents which is the healthiest since the month of July 2008. The Finance Minister of New Zealand Bill English said that he is not at all happy with the currency’s level. The yen traded nearby the maximum level in more than eight months as compared to the dollar on the consideration of BOJ (Bank of Japan) will be faster as compared to the Federal Reserve in extracting the emergency stimulus actions.

On 3rd October, the Governor of Bank of Japan Masaaki Shirakawa said that there is a need for the programs to purchase commercial paper and other commercial bonds has relieved. William Dudley who is the President of New York Fed said that American rate of interest should remain low for quite some time just to make sure a healthy revival.

Hideki Amikura who is the deputy general manager of Nomura Trust & Banking Corp, Tokyo said that it is feasible that Bank of Japan might be faster as compared to Fred in making use of the exit policies. This could probably help in the purchase of the yen.

The euro-zone economy deal a little more than anticipated

Friday, October 9th, 2009

According to the official data in the second quarter, the euro-zone economy deal was a little higher than anticipated. According to Eurostate of European Union data, the GDP (gross domestic product) of around sixteen countries which are making use of euro came down by 0.2 percent between the month of April and June end, compared with the beginning three months of the year, and was 4.8 percent inferior than in the last year’s second quarter.

As per Dow Jones Newswires assessments by the economists in the previous week, the economists were not anticipating any revision of earlier estimation of second quarter GDP of 0.1 quarterly downfall and 4.7 percent fall on the year. According to the data it is still signifying a revival from the initial three months of the year when Gross Domestic Product came down 2.4 percent on the quarter and 4.8 percent on the year, but there are chances that this would temper some hopefulness regarding the revival.

Progressing trade studies of the consumer self-confidence have encouraged most of the economists that the euro zone will be making a come back to the quarterly development between the months of July and September. But there are some factors regarding how strong the revival will be with the joblessness at a ten year high and still increasing.

The GDP data will most probably support the anticipations that European Central Bank will be leaving their main rate of interest and other original policies calculations after their subsequent fiscal policy meeting which will be held on Thursday, and for the future, because of the inflation limitations.

According to the breakdown of the figures of gross domestic product, the final spending expenses was modified to demonstrate the increase of 0.1 percent on a quarterly basis in the second quarter, from the boost of 0.2 percent in the earlier approximation. In the first quarter household expenses came down by 0.4 percent. According to Eurostat, in the second quarter the investments cam down 1.4 percent. That was the descending modification from 1.2 percent fall which was reported in the earlier estimation. But still there was a significant development on 5.3 percent drop seen in the initial three months of the year.

According to the figures though the exports came down 1.4 percent on the quarterly basis in the second quarter, imports also came down 2.8 percent. In the first quarter, the exports also came down 9.1 percent and imports decreased 7.8 percent.

Brazil’s Real witnessed a six month increase

Wednesday, May 6th, 2009

Encouraged by a rally in the stocks and services across the world the Real of Brazil increased a six month high. The currency became stronger 2.4 percent at 2.1195 per American dollar which is the maximum since November 10. The real rose 9.1 percent in the current year which is considered the finest performance amongst the other currencies of the world after rand of South Africa.

Mr. Mario who is the foreign exchange manager at Sao Paulo based Fair Corretora de Cambio was of the view that with the investors making a return to the stock market of Brazil, it will benefit the real. For the first time the Bovespa stock index increased more than fifty thousand since September with the rumors of growth outlook getting better for two of the country’s main export markets and it will encourage for services.

The real also became stronger with the rally in services prices and country’s two-third exports comprises of iron ore and raw materials. Mr. Jorge who is a foreign exchange manager at Rio de Janeiro-based Banco Prosper SA, the bouncing back of the services prices means extra income from the foreign deals and it will only increase the currency.

According to the Trade Ministry, the trading in Brazil increased from March’s $1.76 billion to $3.70 billion in April as China increased the imports of Brazilian services. According to a survey by some of the best analysts, the outcome was more than the median $3.13 billion. The survey conducted by the central bank the analysts make a prediction of 0.29 percent reduction in Brazilian economy in the current year as compared to the downfall of 0.38 percent which was approximated last week.

In nine months for the first time, the manufacturing developed in China while the American building expenditure concluded a six-month downfall. At an auction the central bank of Brazil settled to lend $804 million of a total of $1 billion to the local banks from foreign reserves. As per a statement the bank acknowledged 13 bids. The yield for Brazil zero-coupon bonds due January 2010 increased three basis points to 9.78 percent.