ECB raises Interest Rates 25 point, cuts 2007 growth forecast.
The ECB considered raising its key interest rates by half a percentage point at its meeting, but the “overwhelming majority” of the bank’s governing council deemed a quarter-point hike more appropriate, president Jean-Claude Trichet said on Thursday.
Read more »Ben Bernanke: Tough Guy
Ben S. Bernanke rattled world financial markets Monday with his tough talk about combating inflation, but he also buffed up his image as a strong US Federal Reserve chairman committed to the fight, analysts said yesterday.
Read more »British interest rates should remain at 4.50%.
Bank of England (BoE) policymakers are predicted to maintain British interest rates at 4.50 percent on Thursday for the 10th month in a row. The decision-making body of the BoE, the Monetary Policy Committee (MPC), will likely freeze the “repo” rate, at which the central bank lends to commercial banks, according to a poll of [...]
Read more »European Central Bank interest rates will rise.
The European Central Bank is certain to raise its key interest rates for the third time in six months when its meets in Madrid later this week, analysts have said, with ECB watchers merely speculating about the size of the expected move.
Read more »US Dollar extends rebound on Bernanke’s comments
The USD extended a recovery on Tuesday from one-year lows against the Euro after Federal Reserve Chairman Ben Bernanke’s pledge to stay vigilant against inflation left the door open for another interest rate rise later in June.
Read more »Treasury Secretary Paulson: Not a Savior!
Yesterday, U.S. President George W. Bush named Paulson, a 60-year-old Wall Street veteran, to succeed John Snow, a former railroad executive who has led the department since February 2003. Hank Paulson’s nomination as Treasury Secretary may provide some temporary relief for the sliding USD owing to Paulson’s prominent status as a former of a top [...]
Read more »US Treasury Secretary change could lead to weaker dollar.
The USD weakened further today as the market continued to be rattled by a report speculating that a possible replacement for US Treasury Secretary John Snow could favor a weaker greenback, dealers said. Dealers pinned the blame for the currency’s weakness on an opinion piece in the Times in the UK, which said that President [...]
Read more »Forex – Dollar Rally – Short Lived?
Most currency watchers think that any USD rally is likely to prove temporary, given the market’s mounting concerns over the US current account deficit, which stands at around 6 pct of GDP, and expectations of a narrowing in the yield differential between the US and its major competitors.
Read more »China’s International investment surges by 138%
China’s net international investment position (IIP) more than doubled last year, largely as a result of its fast-growing economy and an improved international clearing capacity. China’s net IIP, or overseas financial assets and direct investment minus such liabilities, was US$287.5 billion at the end of 2005, surging by 138 per cent from a year earlier, [...]
Read more »Nintendo Make More Money From The Forex Market!
TOKYO: Japanese games console maker Nintendo Co Ltd has reported a 12.5 per cent increase in its net profit for the year ended March 2006, mostly on account of gains from foreign currency-denominated assets. However, the company forecast a 34 per cent decline in net earnings this fiscal, as a result of the impact of [...]
Read more »NAB bosses blinded by forex scandal
National Australia Bank’s management had the wool pulled over their eyes by two former traders involved in the $326 million unauthorised trading scandal that rocked the bank in 2004, a court has been told. The Victorian County Court heard that Vince Ficarra told his boss on the foreign exchange options desk, Luke Duffy, that he [...]
Read more »Forex – Dollar rises sharply on stronger-than-expected US new homes sales data
The USD rose sharply against major currencies after US new homes sales data came in well above expectations, suggesting that US interest rates could be heading higher. US new home sales rose by 4.9 pct in April to 1.20 mln units, the highest level so far this year and well above analysts’ expectations for a [...]
Read more »The US Current Account Deficit
Is the USD at risk because of America’s enormous current account deficit? Many “experts” are spreading information that is confusing, outdated or simply not applicable. Yes, the current account deficit puts the dollar at risk; at the same time, however, a lower dollar will provide no long-term solution to the current account deficit.
Read more »EUR/USD & GBP/USD in Consolidation Phase?
In the past few days we have seen a bearish scenario develop slowly in the EUR/USD and GBP/USD pairs. The USD rallied mostly on Wednesday as both French and Germany’s economy ministry agreed that an ongoing rise in the euro could harm exports. French Finance Minister Thierry Breton even went further by saying that “everything” [...]
Read more »Aussie Dollar pressured by commodities correction
The Australian dollar (AUD) fell off it’s 2 week low today as the USD gained against major currencies. However the Australian dollar upside was limited due the fall in commodity prices during the few last sessions.
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