Click to continue reading “New Zealand Dollar Rebounds on Retail Sales”
Click to continue reading “Canadian Dollar Suffers Huge Impact on Inflation, Risk Aversion”
The Canadian dollar declined versus its U.S. counterpart and
The loonie was impacted today as energetic and metallic commodities declined, specially the crude oil, as raw material exports account for more than half of the country’s international trade revenue, in a day of bearish markets in New York and Toronto.
Click to continue reading “Canada’s Dollar Retreats on Oil, Risk Aversion”
Click to continue reading “Brazilian Real Declines on Treasury Plans”
Click to continue reading “Canadian Dollar Rebounds After Bearish Days”
Risk aversion declined significantly today after China set a new reserves requirements for banks in the country, allowing the yen to outperform all of the 16 main traded currencies in
Equities markets in Asia and globally declined today, raising demand for the yen, as China set a minimum of 16 percent of reserves that large banking corporations in the country must have, in order to avoid a credit bubble as the one that caused the global slump in late 2008.
Click to continue reading “Yen Rallies on China’s Banking Policy”
Sterling dipped slightly against the single currency, relinquishing gains in the afternoon as US equities slipped back, closing the day down just 0.1% at 1.0958.
A lot of people like the participants of the currency markets, economists and experts of the Central bank have been trying to understand and identify, what factors exactly drive the highs and the lows of the Forex market.
Click to continue reading “Factors Influencing the Forex Market”
Exchange rate risk is one of the four risks associated with the worldwide foreign exchange market. The market supply and demand for currencies shifts continuously and its consequences lead to the exchange rate risk on an outstanding forex position.
A currency option is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to trade a specific amount of currency at a certain price on or before a certain date, regardless of the market price of the currency.
The US Dollar surged higher to start the trading week as stocks sold off across Asian exchanges, boosting demand for the safety-linked currency.
Currency markets will be focused on the outcome of the G20 summit of world leaders in Pittsburg to guide directional momentum. A leaked draft communiqué hinted policymakers were in no rush to withdraw fiscal stimulus, but concerns remain about what measures will be taken against risk-taking in the financial markets.
Key Overnight Developments
• NZ Annual Trade Deficit Shrinks as Imports Fall for Fifth Month
• Bank of Japan Says Recovery After Stimulus, Restocking is “Uncertain”
Critical Levels
The Euro initially sold off but prices recovered late into the overnight session, adding much as 0.2% against the US Dollar.
The British Pound may be in for a volatile session ahead as the release of minutes from this month’s Bank of England monetary policy meeting top the economic calendar in European hours.
Currency markets are likely to continue looking to risk sentiment to drive price action with another thin economic calendar on tap in European trading hours.
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