Posts Tagged ‘Assets’

UBS predicts growth of dollar / franc to the end of the year

Posted by admin on October 27th, 2009

According to currency analysts UBS, the recent restoration of the dollar / franc could be due to the fact that investors will convert denominated in foreign currency savings back into dollar assets. The bank believes that this process has undoubtedly contributed to the restoration of the American currency, however, is unknown to what extent these flows will be able to compensate for unfavorable for the dollar long-term fundamentals. Projected UBS, in the 4 th quarter pair dollar / franc rise to a mark of 1.09, while in the 1 st quarter of 2010 will drop to a level of 1.07.

Click to continue reading “UBS predicts growth of dollar / franc to the end of the year”

Posted in News Comments Off

Sterling halted its recent rally and is slipping back sharply against the kiwi as UK GDP figure disappoints

Posted by admin on October 26th, 2009

The pound was broadly sold on Friday following a weak GDP figure, losing three cents to the kiwi dollar, to close back down at 2.1607. Data revealed that Britain’s economy has now shrunk for six quarters after it contracted by 0.4% in the most recent quarter, the longest period of contraction since records began in 1955. Analysts have now renewed their discussion over the possibility of the Bank of England retaining, or even extending, its £175 billion QE programme, which would compound sterling’s weakness. The news also confirmed that the BoE are likely to keep the benchmark interest rate at a record low of 0.5% firmly into 2010, lessening the appeal of sterling assets.

Click to continue reading “Sterling halted its recent rally and is slipping back sharply against the kiwi as UK GDP figure disappoints”

Posted in Other Forex Comments Off

Bank of England voted unanimously to maintain the key rate

Posted by admin on October 21st, 2009

Wednesday, 21 October, the Bank of England published the minutes of the meeting held on October 7-8, at which the Committee on monetary policy has kept the rate of compulsory reserves of commercial banks at 0.50%. The decision was taken unanimously. At the same meeting it was decided to continue the program to acquire the assets of the private sector by the central bank reserves amounting to 175 billion pounds.Based on the evaluation of the program to buy assets on the financial markets, the Committee of the Bank of England expects that this program in conjunction with other factors, including timely reduction of the key rate, government intervention to stabilize the banking system, the restoration of the world economy and increased confidence, has led to significant improvements.

Click to continue reading “Bank of England voted unanimously to maintain the key rate”

Posted in News Comments Off

Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes

Posted by admin on October 21st, 2009

Sterling climbed over a cent and a half against the kiwi in trading yesterday as the market briefly turned bearish on higher-yielding currencies. The pound reversed losses incurred on Monday, but closed the day some way from its intra-day high of 2.2000 as investors held back from taking significant positions ahead of the UK MPC minutes released today. The kiwi dollar, which has broadly risen as the global economy shows increasing signs of recovery, fell back as demand for “riskier” assets stumbled following some weak economic data from the US economy.

Click to continue reading “Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes”

Posted in Other Forex Comments Off

The pound is gaining against the aussie as risk appetite briefly dulls and sterling demand picks up

Posted by admin on October 21st, 2009

The pound posted gains against the aussie dollar yesterday as risk appetite waned slightly with weak data emerging from the US and equities slipping back. The US PPI unexpectedly decreased by 0.6% in September, disappointing expectations of a 0.1% rise, which raised concern over the strength of the US recovery. Data from the US housing market also fell below market forecasts, dulling investor appetite to buy into perceived “riskier” assets, weakening demand for the aussie. Sterling’s advance was relatively steady though, with the price rising less than 0.4%, as the broad strength of the Australian currency prevented traders from selling their investments in any great number.

Click to continue reading “The pound is gaining against the aussie as risk appetite briefly dulls and sterling demand picks up”

Posted in Other Forex Comments Off

Lower equites, dulled risk appetite yesterday enabling the US dollar to post gains against the euro

Posted by admin on October 21st, 2009

The single currency slipped back from a fresh 14-month high against the dollar following further comments from the ECB that expressed apprehension over the euro’s strength. In early trading, options buying once again prevented the euro from pushing through the psychologically important $1.50 level, posting a high of $1.4993. The single currency was supported after further positive corporate earnings weighed on haven demand for the dollar, emboldening investors to sell the low-yielding US unit to fund the purchase of riskier, higher-yielding assets elsewhere. However the euro fell back as the ECB repeated their support for the US Treasury’s self-professed strong-dollar policy, and expressed concerns over recent “volatile” trends in the market and the strength of the single currency In the afternoon Wall street slipped as tame US inflation data offset strong quarterly earnings from Apple, denting investor appetite to sell the low-yield dollar. The economic data, which showed that the US PPI unexpectedly dropped by 0.6% last month, disappointed market expectations and helped the greenback recover earlier losses, though analysts said that it would remain under pressure as long as stocks continued to show an upward trend.

Posted in Other Forex Comments Off

Aussie resumes its climb against the pound, but has capped gains this morning

Posted by admin on October 20th, 2009

The aussie dollar continued its upward trend yesterday, pushing on nearly one percent against the pound following bullish words from an RBA official.The Australian dollar rose as a Reserve Bank of Australia official said a move to “more normal” interest rates was appropriate, indicating that the yield gap may widen further.Philip Lowe, assistant governor of the RBA, also mentioned at the conference in Sydney that it was “appropriate” to remove monetary stimulus as the economy improves boosting demand for higher-yielding assets. The Australian currency also traded strongly during the Asian session with demand high as both the Nikkei and Shanghai Composite indices traded strongly.

Click to continue reading “Aussie resumes its climb against the pound, but has capped gains this morning”

Posted in Other Forex Comments Off

Goldman Sachs recommends buying a pound / dollar

Posted by admin on October 15th, 2009

Currency strategists Goldman Sachs recommend buying a couple of pound / dollar. The bank believes that the short-term weakening of the dollar will continue. The relative growth, the correlation with the cyclical assets and capital flows continue to signal that, in the following months, the U.S. currency will continue to decline. Downtrend of the dollar probably will continue to provide support to European currencies, including the British pound. If you believe a member Monetary Policy Committee Fischer, in November, Britain could make a pause in the policy of quantitative easing, but good data on the PMI index, and the growth can support the pound.

Click to continue reading “Goldman Sachs recommends buying a pound / dollar”

Posted in News Comments Off

Strong commodity prices and doubts over the UK economy allow the aussie to gain further ground

Posted by admin on October 13th, 2009

The Australian dollar continued to push higher yesterday, advancing over a cent as sentiment towards the higher-yielding currency remained positive. Commodity currencies, such as the aussie, made progress yesterday in line with stronger prices for oil and metals. Rallying global equity and commodity markets encouraged the rise in risk appetite in the market, which heightened demand for the aussie dollar. In the UK, the market still holds the view that further quantitative easing could be announced in November, which has put substantial pressure on the UK currency as other major economies look to wind up stimulus measures.

Click to continue reading “Strong commodity prices and doubts over the UK economy allow the aussie to gain further ground”

Posted in Other Forex Comments Off

Demand for the kiwi remained strong yesterday, but it has lost ground in the wake of comments from Ben Bernanke

Posted by admin on October 9th, 2009

The pound edged down against the kiwi as rising risk appetite in the market offset the BoE’s decision to hold their monetary policy unchanged. Investors continued to buy into the higher-yielding New Zealand dollar, encouraged by rallying global equity markets and a broadly weaker dollar.In the UK, the BoE kept interest rates at 0.5% and decided against extending the quantitative easing programme as some had feared.However, the decision only gave the pound a muted boost against the kiwi, as investors had already priced the news into the market.In trading this morning, the kiwi has trimmed its gains as investors lock in some profits and as comments from the Fed Chairman suggested that the US may need to tighten monetary policy, spurring a slight return to the US dollar.However analysts have noted that overall market sentiment towards the kiwi is still pretty bullish, and that any upward movement for the pound is likely to be as a result of profit taking, rather than decreasing demand for kiwi assets.

Posted in Other Forex Comments Off

Pound advanced vs a weakened dollar yesterday, supported too by a hold in the UK’s QE programme

Posted by admin on October 9th, 2009

The pound climbed just over a cent (0.6%) against the dollar, buoyed by the BoE’s decision to keep its assets purchase scheme on hold.In early trading sterling moved up against a broadly weak dollar, supported by expectations that the BoE would keep interest rates unchanged and maintain its current level of quantitative easing. The dollar also came under pressure, falling broadly as rising equity markets fuelled demand for riskier assets at the expense of the safe haven US currency. Dollar selling was led by positive employment data in Australia, which spurred investors to relinquish positions in the greenback in favour of higher-yield currencies, favouring an upward movement in the sterling/dollar pair.

Click to continue reading “Pound advanced vs a weakened dollar yesterday, supported too by a hold in the UK’s QE programme”

Posted in Other Forex Comments Off

Investors were cautious yesterday ahead of an ECB rate decision, but the euro has rebounded this morning

Posted by admin on October 8th, 2009

The euro relinquished some of its recent gains against the greenback yesterday, with investors on the defensive ahead of the ECB rate decision today. A broadly stronger dollar was the currency of choice yesterday as investors trimmed “riskier” positions in favour of the haven currency as equities slipped into the red, easing risk appetite.The dollar also benefited after a US official said raising interest rates would not derail the US economic recovery. “Even if we were to start immediately, much time would pass before incremental increases could be considered tight or even neutral policy.Additionally analysts noted that the greenback was being supported by speculation that the dollar’s decline may have been too fast to sustain.In trading this morning, the greenback has come under pressure after Australian employment data reinforced demand for higher-yielding assets. The ECB are widely expected to announce today at 12:45BST that interest rates in the eurozone will remain at a record low of 1.0%, though the tone of the accompanying statement is likely to reflect growing optimism over the state of economic recovery in the region.

Posted in Other Forex Comments Off

Rate rise to 3.25% in Australia boosts demand for the aussie

Posted by admin on October 7th, 2009

The Australian dollar continued to push record highs yesterday, supported by the RBA’s decision to raise rates as the global financial crisis eases. The aussie continued to rally strongly, gaining nearly three cents, a 1.4% movement, as investors sought to take advantage of the higher-yield now available on Australian assets. The Reserve Bank of Australia became the first of the G20 nations to raise their base cash rate and helped to ease fears over the state of global economic recovery. Analysts also noted that the widening yield advantage points to further aussie appreciation, particularly as the RBA, unlike other central banks, does not seem too concerned about their currency strength.

Click to continue reading “Rate rise to 3.25% in Australia boosts demand for the aussie”

Posted in Other Forex Comments Off

Single currency pushed higher vs the dollar, which came under heavy selling pressure

Posted by admin on October 7th, 2009

The single currency made strong gains yesterday as the dollar came under pressure about its future status as the chief currency used in oil trades.The single currency broached two week highs as a report came through that Arab States were in secret discussion to find alternatives to using the dollar in oil trades. Major oil-producing countries have denied the report, but markets reacted strongly to the news, which has added fuel to arguments that the US currency’s global status is coming under pressure. Analysts noted that the dollar’s sharp fall was a good example of poor sentiment toward the US currency being vulnerable to speculative selling.

Click to continue reading “Single currency pushed higher vs the dollar, which came under heavy selling pressure”

Posted in Other Forex Comments Off

Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up

Posted by admin on October 6th, 2009

The pound continued to edge downward, undermined by speculation ahead of the MPC meeting later this week. Data revealed that Britain’s services sector grew more strongly than expected in September, expanding at its fastest rate for two years, quelling fears over the UK recovery following weak PMI data in the manufacturing and construction industries last week. However, the data failed to buoy confidence in the pound significantly with investors remaining wary of taking positions in UK assets ahead of the MPC statement this week. Additionally, business activity in the US non-manufacturing sector expanded in September, against market expectations of standstill, which supported dollar buying.

Click to continue reading “Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up”

Posted in Other Forex Comments Off
« Older Entries
Newer Entries »

Sponsors:




RSS FeedSubscribe to our RSS feed!