Market Sentiment Improves, South Korean Won Gains

South Korean wonThe South Korean won gained today as the comments of Federal Reserve Chairman Ben S. Bernanke last Friday increased risk appetite among Forex market participants, bolstering appeal of higher-yielding currencies.

Bernanke made comments on August 26 about ability of the US to support growth of its economy in the long run. Markets reacted positively and traders began search for higher-yield. South Korean trade balance surplus widened to $4.94 billion in July from $2.03 billion in June.

USD/KRW fell from 1,080.10 to 1,073.50 today as of 13:46 GMT.

If you have any questions, comments or opinions regarding the South Korean Won, feel free to post them using the commentary form below.

Earlier News About the South Korean Won:

    * Korean Won Falls on Anticipation of Crisis (2011-08-19)
    * Korea's Won Retreats After Rally (2011-08-12)
    * South Korea Holds Interest Rates, Won Goes Lower (2011-08-11)
    * South Korean Won Suffers from Europe's Troubles (2011-07-12)
    * Higher South Korea's Inflation Leads to Gains for Won (2011-07-01)

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Rand Advances with Stocks & Metals

South African randThe South African rand rallied today, rising to the highest level in more than a week against the US dollar, as stocks and metals advanced after the speech of Federal Reserve Chairman Ben S. Bernanke last week.

Bernanke said last Friday that the Fed has means to support growth of the US economy, improving market sentiment. The main South African stock index jumped 1.7 percent as prices on the London Metal Exchange increased for a fourth day. South Africa’s economy itself performs not that good, though, and many investors still convinced that the nation’s central bank will cut interest rates.

USD/ZAR fell from 7.1300 to 7.0810 today as of 9:56 GMT and touched 7.0680 — the lowest level since August 17.

If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.

Earlier News About the South African Rand:

    * Rand Weakens on Prospect of Interest Rates Cut (2011-08-22)
    * Rand Near Monthly High vs. USD on Rate Difference, US Uncertainty (2011-07-26)
    * Rand Weakened by Credit Rating Outlook for Greece (2011-07-05)
    * Rand Weakens with Commodities on US Growth Forecast (2011-06-23)
    * South African Rand Falls on Greek Crisis, Trims Losses (2011-06-20)

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Fundamentals are Bad for US Dollar, But Week Wasn’t Bad

US DollarThe fundamentals this week were negative for the US dollar, weakening the currency against some major counterparts, but performance of the greenback wasn’t that bad, considering all the pressure to the downside.

There were plenty of bad new for the dollar this week. Bad housing data, rising unemployment claims and slower that expected growth of the US economy. The week ended with the speech of Ben Bernanke, who hinted at possibility of additional stimulus without detailing an actual plan.

The dollar was dragged down by the unfavorable fundamentals and fell against the euro and commodity currencies (including the currencies of Canada, Australia and New Zealand). On the other hand, the dollar gained against the franc and rallied versus the yen before losing its gains by the end of the week as there aren’t many choices for investors who need a safe currency, but afraid of interventions of Japan and Switzerland. The pound also fell against the greenback as Britain has its own problems that erase attractiveness of the nation’s currency.

Next week may also be hard for the dollar. Analysts predict another unfavorable report about hosing and are pessimistic about employment data.

EUR/USD climbed from 1.4376 to 1.4498, while during the week it dropped to 1.4327. USD/CHF climbed from 0.7904 to 0.8058 and reached the daily high of 0.8157. AUD/USD surged from 1.0380 to 1.0569.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Earlier News About the US Dollar:

    * Dollar Drops After Bernanke Speech & GDP Report (2011-08-26)
    * Will Bernanke Announce QE3? Will Dollar Decline? (2011-08-25)
    * Dollar Gains Before Bernanke Speech (2011-08-24)
    * Dollar Falls on China's & Europe's Manufacturing (2011-08-23)
    * Dollar Rises While Traders Afraid of Recession (2011-08-18)

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Pound Goes Down as UK Economy Slows

Great Britain poundThe Great Britain pound weakened against the Japanese yen and slowed its advance versus the US dollar after the report showed the UK economy grew with slower pace in the second quarter.

The revised figure for growth of UK gross domestic product in the second quarter of 2011 was 0.2 percent, the same as in the preliminary estimate. It indicates slower expansion, compared to 0.5 percent growth in the first quarter. The report also mentioned that several special events affected Britain’s economy in Q2: the additional April public holiday, the royal wedding and the aftereffects of the Japanese tsunami.

GBP/JPY fell from 126.12 to 125.68 today as of 9:24 GMT and touched the daily low of 125.41 earlier. GBP/USD climbed from 1.6278 to 1.6332.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    * GBP Falls vs. EUR with Consumer Confidence & Retail Sales (2011-08-25)
    * Pound Rises as Inflation Accelerates (2011-08-16)
    * Osborne Refuses Review Spending Cuts, Boosting Pound (2011-08-12)
    * Pound Drops with Higher Trade Deficit (2011-08-09)
    * Pound Weakens on Worsening Consumer Sentiment (2011-07-21)

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Euro Falls for Second Day vs. Dollar

EuroThe euro fell against the US dollar for the second day and erased gains versus the Swiss franc today as investors are less willing to buy the currency amid signs of problems in Europe and concerns of global economic slowdown.

The decline of consumer confidence in Germany had its negative impact on the shared European currency. GfK stated that German consumer confidence fell from 5.3 to 5.2 this month and wrote in the report:

Economic expectations virtually collapsed in August, and in light of this, there has also been a moderate drop in Germans’ income expectations.

The euro also weakened on the speculation European lawmakers will extend the ban on short sales.

The global weren’t very supportive for the euro either as rising unemployment claims worsened sentiment of traders. Jobless claims in the US rose to 417,000 last week from the previous week’s revised figure of 412,000. Economists anticipated decrease to 403,000.

EUR/USD fell from 1.4412 to 1.4377 today as of 17:39 GMT. During the day the currency pair reached the high of 1.4474 and the low of 1.4327. EUR/CHF traded at 1.4437 today after earlier it dropped from 1.1465 to 1.1407.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Earlier News About the Euro:

* Euro Drops as Europe's Economic Growth Slows (2011-08-16)
* Euro Weakens as Investors Shun European Bonds (2011-08-02)
* Euro Slids for Second Day on Debt Crisis Concern (2011-07-28)
* Euro Posts Weekly Gain After Two Weeks of Losses (2011-07-23)
* Euro Drops as Optimism Caused by EU Summit Wanes (2011-07-22)

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Australia’s Dollar Weakens on Germany’s Consumer Confidence

Australian dollarThe Australian dollar fell today against most major currencies, before rebounding, as the report showed consumer confidence in Germany declined this month, reducing appeal of higher-yielding assets.


The drop of German confidence wasn’t very big as the GfK indicator retreated just to 5.2 in August from 5.3 in the month before. The report explained:


Despite the current crisis on the financial markets, Germans’ willingness to buy is surprisingly robust and increased further in August from an already high level. However, the worsening of the international debt crisis and rising fears of a return to recession for the global economy have clearly left their mark on the economic optimism of Germans.


AUD/USD traded at about 1.0466 today as of 11:16 GMT after dropping from 1.0471 to 1.0428.


If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.


Earlier News About the Australian Dollar:


* Australia Dollar Receives Help from Commodities (2011-08-17)

* Aussie Falls as RBA Minutes Don't Exclude Rates Cut (2011-08-16)

* Australia's Dollar Rallies Despite Rising Unemployment (2011-08-11)

* Consumer Sentiment Curbs Appeal of Aussie (2011-08-10)

* Australian Dollar Attempts Stop Decline, Fails (2011-08-09)

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Yen Advances, Japan Worried — New Intervention is Coming?

Japanese yenThe Japanese yen advanced today, heading to the highs against the dollar last seen during the post-World War II period, and made the Japanese government even more nervous about the currency’s strength.

Investors seek safer assets after North American and European stocks fell. The Standard & Poor’s 500 Index slid 2.6 percent today and the Stoxx Europe 600 dropped 0.9 percent.


The Swiss franc could be the place for investors to put their money in, but the move by Switzerland’s central bank to weaken the nation’s currency made the yen more attractive than the franc as a safe haven. Traders should be cautious, though, as Japan may also intervene to curb appreciation of its currency. Japan’s Finance Minister Yoshihiko Noda spoke today in parliament about danger of a strong currency to the nation’s economic growth.

USD/JPY dropped from 76.95 to 76.46 as of 15:10 GMT today after falling to the record low of 76.34. EUR/JPY sank from 110.63 to 108.37, while earlier it reached 108.31 — the lowest level since March 17.

If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

Earlier News About the Japanese Yen:

* Impact of BoJ Intervention on Yen Wanes (2011-08-09)
* Yen Slumps on BoJ Intervention (2011-08-04)
* Yen Gains on Greece & US Debt Problems (2011-07-28)
* EU Summit Eases Need for Safety, Yen Drops (2011-07-22)
* Second Week of Gains for Yen, Will BOJ Intervene? (2011-07-16)


This entry was posted on TopForexNews on Wednesday, August 10th, 2011 at 3:10 pm and is filed under Japanese Yen. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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NZ Dollar Heads for Second Weekly Drop

New Zealand dollarThe US dollar fell today, heading for a second weekly decline, as the problems of the US and Europe makes traders less willing to invest in currencies perceived to be riskier.

The currency of the South Pacific nations is linked to economic growth and thus reacts negatively to the prevalent pessimistic mood on markets. Such mood intensifies as the threat of the debt crisis spreading to Italy and Spain increases. The economic situation in the US isn’t much better and the report about consumer sentiment later this day is expected to show the confidence of the US citizens declined. The kiwi (the nickname of the New Zealand currency) erased most of its losses since the initial decline and now continues to go higher.


NZD/USD was down from 0.8316 to 0.8279 today as of 10:03 GMT, while reaching 0.8180 intraday. NZD/JPY dropped from 63.88 to 63.49 and the daily low today was 62.71.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

Earlier News About the New Zealand Dollar:

    Risk Rally Pushes NZD to Records vs. Dollar (2011-08-01)
    New Zealand Economy Expands, NZD/USD Jumps to Record (2011-07-14)
    China's Economy Makes Kiwi More Appealing, NZD/USD at Record (2011-07-13)
    Search for Higher Yield Draw Investors to Kiwi (2011-07-06)
    NZ Dollar Reaches Record vs. US Dollar on Business Confidence (2011-06-30)


This entry was posted on TopForexNews on Friday, August 12th, 2011 at 10:03 am and is filed under New Zealand Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Franc Plunges Heavily on Prospects of Euro-Peg

Swiss francThe Swiss franc slumped today against all major currencies as Swiss National Bank Vice President Thomas Jordan suggested that a short-term peg of the nation’s currency to the euro could be legal.

The SNB was attempting to weaken the Swiss currency for several years. So far such attempts were futile. There is a difference this time, though, as a peg wouldn’t have just one-time effect as the previous interventions, but would put a continuous pressure on the franc. It looks like Switzerland’s central bank is ready for unconventional measures and such measures can help the bank to achieve its goals for making the franc’s strength less threatening to the country’s economy.

The potential weakening of the Swiss franc can pose an interesting question (in case the SNB would be able to achieve such weakening, of course): what currency can be considered a safe haven? The yen is also under pressure of interventions, while the dollar doesn’t look that safe. Perhaps investors, interested in safety, would shun the Forex market altogether.

USD/CHF surged from 0.7263 to the daily high of 0.7687 today before trading near 0.7617 as of 21:01 GMT. EUR/CHF climbed from 1.0296 to 1.0843. CHF/JPY slumped from 105.72 to 100.88.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    SNB Moves In, Franc Moves Back (2011-08-10)
    Fed Plans Keep Zero Rates till 2013, Dollar Hurt (2011-08-09)
    CHF at New Record vs. USD, Gains vs. Other Currencies (2011-08-08)
    Intervention: Way to Weaker Franc or Bluff of SNB? (2011-08-08)
    Swiss Franc Prevails Despite Intervention (2011-08-04)


This entry was posted on TopForexNews on Thursday, August 11th, 2011 at 9:01 pm and is filed under Swiss Franc. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Osborne Refuses Review Spending Cuts, Boosting Pound

Great Britain poundUK Chancellor of the Exchequer George Osborne rejected demands of the opposition to reconsider the spending cuts that are biggest since World War II. The Great Britain pound reacted positively to the news.

Opposition to the spending cuts is strengthening as riots and looting in London intensifies and spreads to other cities. Yet Britain’s government remains firm in their intention to maintain the record cuts. Osborne explained that the credibility of the UK austerity measures helped in attracting investors to government bonds, aiding the nation’s economy. Prime Minister David Cameron claimed that the planned decrease of expenditure on the police can be performed “without any reductions in visible policing”.

The sterling gained against the euro, the dollar and the yen on yesterday’s trading session. The UK currency slid against the greenback as today’s trading session has started. The pound attempts to hold against the yen, but slowly gives up gains. Against the euro Britain’s currency rallied for three sessions and still hasn’t showed signs of weakening.

GBP/USD advanced from 1.6132 to 1.6237 and retreated to 1.6212 as of 1:34 GMT today. GBP/JPY rallied from 123.95 to 124.72 on the previous trading session and attempts to hold at this today. Meanwhile, EUR/GBP fell from 0.8770 to 0.8750 today in the third straight session of declines.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    Pound Drops with Higher Trade Deficit (2011-08-09)
    Pound Weakens on Worsening Consumer Sentiment (2011-07-21)
    GBP/USD Erases Losses After BOE Minutes (2011-07-20)
    UK House Prices Fall for First Time in 2011, Sterling Weaker (2011-07-18)
    Pound Falls vs. Euro on Jobless Claims (2011-07-13)


This entry was posted on TopForexNews on Friday, August 12th, 2011 at 1:34 am and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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