Mexican Currency Falls On U.S News
The Mexican currency (peso) dropped on concerns that demand for Mexican exports will drop, the fall in the peso came after Federal Reserve Chairman Ben Bernanke announced a deteriorating U.S. economy.
The fall in the Mexican currency wiped out early gains that were fueled by the expectation that the Mexican central bank will maintain its benchmark [...]
Mexican Currency To Rise In 2008
The Mexican currency (peso) saw gains today after the Federal Reserve cut the U.S. interest rate by 50 basis points. The move by the Fed has made yields in emerging market assets more attractive.
The Fed has lowered the benchmark interest rate to 3% in an attempt to prevent the U.S. economy from falling into a [...]
Forex Investors price in 50 basis point cut
Gold has slipped a little lower as market players anticipate the Fed’s upcoming interest rate decision. Yesterday’s rally above $930 USD has no doubt caused some profit taking, with other investors positioning themselves in case the anticipated 50 basis point cut from the Fed does not eventuate. Investors remain uncertain as to how much assistance [...]
Read more »Chart Driven Forex Investors Push Euro Up
The Euro has been pushed upwards by chart driven Forex investors following the upward trend and also by Forex investors re-evaluating their interest rate expectations for the region and buying more Euro’s to invest in European assets.
In other news the Bank of England’s (BoE) inflation report contributed to pressure on the GBP as the Forex [...]
Forex Investors Reduce USD Holdings On FOMC Minutes Release
Expectations continue to build that the Federal Reserve will pause its rates tightening cycle in August, this will result in Forex traders cutting their long USD positions.
The latest release of minutes from the Federal Open Market Committee meeting (FOMC) revealed that Fed officials are uncertain about the future interest rate direction and are concerned about [...]
Swedish Central Bank raises interest rate to keep inflation in check
The Swedish central bank has said it had decided to hike its leading interest rate by 0.25 percentage points, taking the repo rate to 2.25 percent to help keep a lid on inflationary pressures.
The Riksbank’s goal is to hold inflation to less than 2.0 percent. Inflation has risen over the past year and stood at [...]
US Dollar extends losses even with supporting US CPI results.
The USD extended losses on Wednesday after a higher-than-expected reading of U.S. inflation for May did little to dispel uncertainty about interest rate increases beyond an expected hike in late June.
After seven consecutive sessions of gains in the dollar against the Euro, traders trimmed their positions after the Consumer Price Index data cemented the chances [...]
South Korea raises rates again to dampen inflation
South Korea’s central bank has raised its key interest rate in a bid to head off mounting inflationary pressure amid high oil prices and an ongoing economic expansion.
The Bank of Korea raised the June target for the inter-bank overnight call rate by 0.25 percentage points to 4.25 percent after keeping the rate unchanged for [...]
NZ Interest Rates Remain Unchanged
New Zealand’s central bank has kept its official interest rate steady at 7.25 percent despite slowing economic growth, citing a worse-than-expected outlook for inflation.
Rising oil prices and a declining New Zealand dollar (NZD) is expected to see inflation rise to 3.9 percent this quarter, Reserve Bank governor Alan Bollard said. Earlier forecasts had seen inflation [...]
Read more »Surprise Interest Rates Rise in Turkey
To the surprise of us and almost everybody in the financial markets, the Central Bank (CB) raised its main policy interest rate by 175 bps to 15%. The average expectation for the rate increase in the market was around 50-75 bps, while we were not expecting anything more than 50bps.
In the accompanying short note, the [...]
Read more »South African Reserve Bank hikes Interest Rates by 50bp!
The South African Reserve Bank’s monetary policy committee (MPC) decided to hike the key interest rate by 50bp to 7.50% at today’s monetary committee meeting – the decision was a bolt from the blue.
The decision likely came as a reaction to increasing inflationary pressures in the economy as a result of strong domestic demand and [...]
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 »Markets eye data for clues on USD
The prevailing explanation for the sudden, precipitous fall by the USD is that the Fed is nearing the end of its current monetary tightening cycle, at which point interest rate differentials between the US and the rest of the world will begin to narrow. In this vein, Ben Bernanke’s hint that the Fed might end [...]
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