Posts Tagged ‘Risk Aversion’

Australian Dollar Pare Losses on Inflation

Posted by admin on January 26th, 2010

The Australian dollar managed to gain versus lower-yielding currencies before a report to be released this week in the country is likely to show an advance in inflation in the last year’s last quarter, helping speculations that a series of interest rates in the country will restart. The Aussie rebounded after losing versus most of lower-yielding currencies last week as risk aversion remained predominant in majority of trading hours. Investors in the South Pacific region are waiting an inflation report to be released on Jan 27th expecting positive numbers as forecasts suggest an advance for the country’s prices in the last quarter of 2009, which would provide grounds for a new series of interest rate hikes by Australian policy makers.

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South Korean Won Biggest Loser in Asia on Risk Aversion

Posted by admin on January 23rd, 2010

The South Korean currency, one of the best performers in 2009 among Asian emerging markets, had a severe weekly decline as risk aversion remained predominant after China’s statements regarding new regulations on its economy. After China announced it will take further measures to control inflation in the country, which can be understood with implied slower economic growth, the South Korean currency declined versus most of its main trading partners currencies, as was the worst performer in the Asian region this week in foreign-exchange markets. USD/KRW ended the week at 1,152.50 from an opening rate of 1,136.2 this Friday.

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New Zealand Dollar Rebounds on Retail Sales

Posted by admin on January 21st, 2010

After losing significantly during most of this Wednesday’s session as risk aversion prevailed globally, the kiwi rebounded in currency markets as retail sales advanced in the country reviving the confidence regarding the Southern Pacific economy. The New Zealand dollar had its worse decline in two months this Wednesday as consumer prices showed negative figures, but a retail sales report published in this Thursday early morning in the country revived confidence in the currency as figures came better than forecasts suggested. NZD/USD traded at 0.7227 as of 12:51 GMT from as low as 0.7185 hours earlier.

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Brazilian Real Drops Further on Risk Aversion

Posted by admin on January 21st, 2010

The Brazilian real touched the weakest level in a month as risk aversion remained predominant in today’s trading session globally, since equities and commodities markets continued to follow a bearish trajectory in most of the key-economic regions around the world. Brazil’s real suffered another impact today as China’s lending restrictions announced last week continue to influence risk levels in trading markets globally. Commodities, responsible for a good share of Brazil’s international trade continued to tumble in Asia and Europe, decreasing attractiveness for the real which lost sharply versus a more appealing U.S. dollar as traders searched for safety. USD/BRL closed at 1.7895 today from an opening rate of 1.7715.

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Canadian Dollar Suffers Huge Impact on Inflation, Risk Aversion

Posted by admin on January 21st, 2010

The Canadian dollar ranked among the worst performers in currency markets today as risk aversion influenced commodities and equities trading, which are strongly related to the loonie’s rates as weak economic data in the country also influenced the confidence towards Canada’s currency. Speculations that interest rates hikes would happen anytime soon in Canada faded further away as consumer prices retreated according to a report published today, which forced the loonie down in a day were demand for raw materials declined, affecting the outlook for the Canadian economy as half of the country’s exports are commodities. The U.S.

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Dollar Benifits From Chinese Lending Requirements

Posted by admin on January 21st, 2010

The dollar gained today versus most of the 16 main traded currencies as China tightened its lending restrictions, raising risk aversion in foreign-exchange markets affecting high-yielding currencies the most, as investors search for safer bets. The U.S. currency continue yesterday’s advance as risk aversion coming from Asia is still playing a major role in market sentiment this week, and the safety provided by assets in the country became one of the best options for these turbulent trading sessions. The euro was one of the biggest losers versus the dollar touching the lowest rate in 2010 today after International Monetary Fund officials affirmed that Greece’s situation is serious, once again making the Southern European nation to affect the outlook for the bloc’s single currency.

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Canadian Dollar Continues Bullish Pattern on Commodities

Posted by admin on January 18th, 2010

The Canadian dollar started another week trading high versus its U.S. counterpart as markets that influence its rates rallied in the start of this week, specially energetic and metallic commodities, before tomorrow’s interest rate decision in the North American nation. After a rather bearish past week for the crude oil which posted consecutive days of losses as risk aversion rose in Europe and China, the Canadian dollar benefited from a rebound in the oil rates today, as future contracts advanced for the first time in six days. Canada is also a metallic commodity exporter, and as the copper advanced together with stocks in Europe, the loonie advanced significantly versus the greenback in a rather calm trading session due to a bank holiday in the United States.

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Dollar Profits From Global Economic Pessimism

Posted by admin on January 16th, 2010

This Friday’s shift in market sentiment allowed the U.S. dollar to post a weekly advance versus most of the main higher-yielding currencies, as risk aversion rose globally and traders opted by the relative safety provided by dollar-priced assets. The dollar gained significantly versus commodity producer currencies like the Brazilian Real and the Australian dollar towards the end of this week as China’s new lending restrictions raised concerns that demand for raw materials may decline in the country, affecting exports from these countries. The dollar also reverted a losing trend versus the euro and ended the week with a positive result as some of its member countries increasing budget deficit are raising speculations that the currency attractiveness may be impacted among traders, making the European single currency to drop sharply in this week’s last trading session.

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Australian Dollar Down on Chinese Risk Aversion

Posted by admin on January 15th, 2010

The Australian dollar was one of the most affected currencies today as speculations that Chinese lending requirements will slow down the global economic recovery impacted traders’ sentiment, declining appetite for high-yielding currencies. The Aussie and the kiwi declined today versus most of the main 16 traded currencies, after one of its main trading partners, China, is likely to reduce property loans after the government set new restrictions for lending money in the nation’s banks, fueling speculations of an economic slowdown and consequently raising risk aversion in trading markets towards the end of this week’s session.

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Canada’s Dollar Retreats on Oil, Risk Aversion

Posted by admin on January 15th, 2010

The Canadian dollar declined versus its U.S. counterpart and lower-yielding currencies as risk aversion rose impacting markets with extreme influence in the loonie rates, those of raw materials and equities, which dropped globally this Friday. 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. China’s new tightening lending policy declined appeal for high-yielding currencies, and despite U.S. mediocre data published in reports this Friday showing a slow down in the country’s inflation, the greenback advanced versus the loonie after touching a three-month low earlier this week.

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Canadian Dollar Falls on Trade Deficit Surprise

Posted by admin on January 12th, 2010

The Canadian dollar had its rally towards parity with its U.S. counterpart halted after a monthly trade deficit was posted today, raising doubts that the nation’s economy is not going as good as some analysts like to believe. The loonie had a disappointing surprise today as Canada posted a trade deficit of more than $300 million while forecasts suggested a surplus of $500 million, surprising traders and affecting the outlook of one of the best performing currencies so far in the beginning of 2010. The Canadian dollar had profited so far this month from high risk aversion and an increasing demand for the nation’s commodities, which influenced the Canadian economic expectations, impacted today showing traders that Canada’s resilience is not as high as previously imagined.

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Yen Rallies on China’s Banking Policy

Posted by admin on January 12th, 2010

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 foreign-exchange markets, as pessimism surged. 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. The yen is considered the safest refuge in currency markets for turbulent times and benefited from today’s negative scenario, as China’s policy decreased demand for high-yielding assets, which were trading high since the beginning of the year.

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The kiwi retreated at the end of last week on a rise in risk aversion

Posted by admin on November 2nd, 2009

The kiwi dollar struggled on Friday enabling the pound to jump 1.4%, briefly nearing the 2.30 level, as risk appetite in the market waned.Higher-risk currencies struggled to make headway at the end of last week as the rally in global equities in the wake of the positive US GDP data came to an abrupt halt. As global stocks fell, investors sought shelter in the haven currencies fuelling a sell-off in the higher-yielding kiwi dollar, buoying the sterling price. In trading this morning, the New Zealand dollar has pulled back from six-week lows against the pound, with profit taking in high-yield currencies taking a pause.

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Having weakened off sharply on Friday, the aussie is trading strongly against the pound this morning

Posted by admin on November 2nd, 2009

The pound climbed just over two cents against a broadly weakened aussie dollar on Friday with a rise in risk aversion putting selling pressure on the higher-yielding currency. Weak data in the US and plummeting global equity markets enable the pound to gain as investors took the opportunity to cash profits in the aussie and retreat to safer assets. Analysts have recently noted that the rally in risky assets could come to an end. Conditions for perceived riskier assets to gain requires a flow of positive economic data combined with loose global monetary policies and low interest rates.

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Dollar was buoyed at the end of last week as risk appetite waned

Posted by admin on November 2nd, 2009

The greeback pulled back from its sharp sell-off on Thursday, as weak US economic data spurred a return to risk aversion.In early trading, the dollar continued to lose ground following the better-than-expected US growth data, however the GBP/USD rally was capped at 1.6600, and the UK currency pulled down steadily, eventually closing down 0.6% ay 1.6448. US markets went through losses on Friday, with financials and materials leading the path, as risk aversion returned after Thursday’s optimism, strengthening support for the greenback. On the macroeconomic front, data revealed that US consumer spending declined 0.5% in September, the largest decline since December 2008, further buoying the dollar rally.

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