The
euro fell to three month lows against the dollar on Tuesday after a top
European Central Bank (ECB) official reiterated the central bank’s
commitment to low interest rates and ratings agency Standard &
Poor’s downgraded Italy’s sovereign rating one notch, from BBB-plus to
BBB.
In an interview with Reuters,
ECB executive board member Jörg Asmussen said the central bank may keep
interest rates low beyond 12 months, expanding upon remarks by ECB
President Mario Draghi last week. Mr. Asmussen also said the central
bank wouldn’t rule out another round of cheap loans, which were used two
years ago to pump capital into struggling euro-zone banks.
The single currency came under further pressure after
credit ratings agency Standard & Poor’s announced that Italy’s
sovereign rating had been downgraded to BBB from BBB-plus and left their outlook as negative.
According to S&P, this action reflects their view of
the effects of further weakening growth on Italy’s economic structure
and resilience, and its impaired monetary transmission mechanism.
At the close of the U.S. session, EUR/USD was down 0.73% at
1.2777, up from a session low of 1.2763 and off from a high of 1.2898.
Meanwhile, the dollar gained against the pound after weaker than expected manufacturing data out of the U.K, offset higher than previously predicted
growth forecasts from the IMF. The Office for National Statistics
announced that U.K. manufacturing production contracted 0.8% in May,
defying expectations for a 0.3% increase.
GBP/USD closed the U.S. session down 0.61% at 1.4861, up from a session low of 1.4813 and off from a high of 1.4981.
More Coverage of the Day’s Top Story
- FT: Sterling takes a pounding as shorts build. – Sterling is taking a pounding. The British pound has hit its weakest level against the dollar in more than three years – and is at its lowest against the euro since March.
- DailyFX: British pound plummets to lows, but is it too much too soon? – The British pound has fallen to its lowest levels since 2010 as professional traders pile into short positions and disappointing economic data worsens GBP malaise. But we’re seeing evidence that the rally might be too much too soon, and indeed there’s material risk of a short-term bounce.
More Top Stories:
Trading Floor: Meandering markets in FX await FOMC outcome.
– it was a quiet night once again, with the exception of stronger
Chinese CPI data, which came in 0.2 percent better than market
expectations. Australian data was weaker, while NZD data stronger. It
seems that the market is now strictly sitting on its hands waiting for
US Federal Reserve chairman Ben Bernanke tomorrow.
Bloomberg: Canada dollar gains second day as earnings bolster risk demand.
– The Canadian dollar advanced for a second day as Alcoa Inc. started
the U.S. earnings season with results that exceeded analysts’ estimates,
boosting demand for riskier assets.
The Age: Make or break week’ for the Aussie.
– The Australian dollar has pared overnight gains after a disappointing
survey showed business conditions at home remained tough last month,
underpinning the case for a further cut in interest rates.
Business Spectator: Australian dollar rallies on China inflation spike. – The Australian dollar rallied at the close after stronger-than-expected inflation data out of China.
New Zealand Herald: NZ dollar gains as investors temper US optimism.
– The New Zealand dollar gained after investors bet the greenback had
advanced too far, too fast following upbeat US employment numbers last
week.
MarketWatch: Gold futures head higher for a second day.
– Gold futures rose for a second session on Tuesday, continuing to
bounce after the metal resisted falling through a key support level
despite last week’s strong U.S. jobs data.
MarketPulse FX: USD/JPY – Steady ahead of BOJ minutes.
– The yen remains at high levels, but is steady in Tuesday trading.
USD/JPY continues to trade in the low-101 range in Tuesday’s European
session. Taking a look at Japanese releases, M2 Money Stock, released
on Monday, showed another increase, as we continue to see more
domestic money in circulation.
- See more at:
http://www.forexnews.com/blog/2013/07/09/euro-tanks-after-ecb-comments-and-italy-downgrade-and-other-top-forex-news/#sthash.WZK6d5ut.dpuf
The
euro fell to three month lows against the dollar on Tuesday after a top
European Central Bank (ECB) official reiterated the central bank’s
commitment to low interest rates and ratings agency Standard &
Poor’s downgraded Italy’s sovereign rating one notch, from BBB-plus to
BBB.
In an interview with Reuters,
ECB executive board member Jörg Asmussen said the central bank may keep
interest rates low beyond 12 months, expanding upon remarks by ECB
President Mario Draghi last week. Mr. Asmussen also said the central
bank wouldn’t rule out another round of cheap loans, which were used two
years ago to pump capital into struggling euro-zone banks.
The single currency came under further pressure after
credit ratings agency Standard & Poor’s announced that Italy’s
sovereign rating had been downgraded to BBB from BBB-plus and left their outlook as negative.
According to S&P, this action reflects their view of
the effects of further weakening growth on Italy’s economic structure
and resilience, and its impaired monetary transmission mechanism.
At the close of the U.S. session, EUR/USD was down 0.73% at
1.2777, up from a session low of 1.2763 and off from a high of 1.2898.
- See more at:
http://www.forexnews.com/blog/2013/07/09/euro-tanks-after-ecb-comments-and-italy-downgrade-and-other-top-forex-news/#sthash.WZK6d5ut.dpufU.S. Dollar Strengthens On Housing Data and Other Top Forex News Jul 25, 2013
The greenback was stronger across the board in a thin day’s trading on Tuesday, after data showed U.S. new home sales jumped to a five-year high in June, boosting the outlook for the worlds largest economy. The Commerce Department said U.S. new home sales jumped 8.3% to a seasonally adjusted annual rate of 497,000 units
Dollar Strengthens On China Worries and Other Top Forex News. 16th july 2013
The dollar moved higher against most other major currencies on Monday after a slew of data out of China, failed to ease investors concerns of a slowdown in the world’s second largest economy. China reported GDP growth slowed in the second quarter to 7.5% year-on-year as weak overseas demand weighed on output and investment.
Euro Tanks After ECB Comments And Italy Downgrade and Other Top Forex News.july 10 2013
The euro fell to three month lows against the dollar on Tuesday after a top European Central Bank (ECB) official reiterated the central bank’s commitment to low interest rates and ratings agency Standard & Poor’s downgraded Italy’s sovereign rating one notch, from BBB-plus to BBB.
Dollar Rally Takes a Pause
July 08, 2013 GE Trade Surplus weaker than forecast Troika says Greece program broadly in line but outlook uncertain Nikkei -1.40% Europe 1.32% Oil $103/bbl Gold $1225/oz. Europe and Asia: JPY CA 62T vs. 62T JPY Eco Watchers Survey Current 53 vs. 55.6 CHF Unemployment Rate 3.2% EUR German Trade
ECB and BoE Double Whammy Hits Euro and Pound and Other Top Forex News(july 5 ,2013)
The euro and pound fell to five-week lows against the dollar on Thursday after dovish comments by both the European Central Bank (ECB) President Mario Draghi and new Bank of England (BoE) Governor Mark Carney. ECB President Mario Draghi, speaking at the bank’s post policy meeting press conference, said the restrained outlook for inflation, weakness.
Dollar Breaks Above ¥100, Aussie Sinks and Other Top Forex News.july 3, 2013
The U.S. dollar rose across the board against all major
currencies on Tuesday, breaking above ¥100 against the yen for the first
time in four weeks after data revealed factory orders in the U.S. are on the rise. Strengthening investors views that the Fed will soon begin to ‘taper’ back bond purchases, which weaken the dollar.
The most significant move of the day was the dollars break
past the important ¥100 level for the first time since June 5th. USD/JPY
ended the U.S. session up 0.85% to ¥100.53.
Meanwhile the Australian dollar was one of the worst performers of the day, after the Reserve Bank of Australia held interest rates at 2.75%, in line with expectations, but warned that the currency was still “at a high level”.
As a result the Aussie fell more than 1% against the U.S.
dollar to $0.9136, trading just above the 34-month low, which it hit
yesterday.
The pound was also weaker today after figures showed that the UK construction industry expanded
at a faster rate in June but less than analysts had predicted, with the
purchasing managers’ (PMI) index from Markit and the Chartered
Institute of Purchasing and Supply rising to 51 from 50.8 the previous
month.
Sterling ended the day down 0.44% against the dollar at $1.5150, up from a low of 1.51352 and down from a high of 1.53395.
Investors are now eagerly awaiting tomorrows ADP non-farm
payrolls data, a precursor to Friday’s official non-farm payrolls
report, for further guidance as to the Feds intentions.
More Coverage of the Day’s Top Story
- FT: Dollar strength forces Australia to hold rates. – The Reserve Bank of Australia kept official interest rates on hold at a record low on Tuesday but signalled a further weakening of the local currency was needed before the bank dropped its easing bias completely.
- MarketWatch: Dollar above 100 yen on Fed taper forecasts. – The U.S. dollar saw strong gains versus major rivals Tuesday, pushing back above 100 Japanese yen for the first time since early June, as traders appeared increasingly confident the Federal Reserve will move to slow the flow of monetary stimulus as the Bank of Japan keeps its own spigots wide open.
- Forex News: Dollar bursts through key resistance levels. – We know that it is an important week in the forex market when even on a day like today when the global economic calendar contains virtually no market moving releases outside of last night’s RBA decision, currencies are seeing big moves. USD/JPY rose above 100 for the first time in almost a month while the EUR/USD tested 1.30 for the fifth trading day in a row.
More Top Stories:
Investing.com: Currencies are front and center again.
– Here’s a five-year look at the Dollar Index. With the exception of
late 2008/early 2009 (height of financial crisis) and in mid 2010 (at
the height of the Greek/Euro debt crisis) the Dollar Index has been
below 84.50.
Trading Floor: The RBA wants the AUD lower, while GS wants the EUR higher. –
The Reserve Bank of Australia (RBA) left rates unchanged in the land
down under and seized the opportunity to jawbone the little battler a
little more. I dare say this tack will remain for the coming month or
three, whereby it doesn’t move on rates, revels in better terms of trade
thanks to a currency which is about 10 percent weaker than it was two
months ago and continues to flirt with a market that is pricing in more
cuts.
Bloomberg: Canadian dollar drops on speculation economy falling behind U.S.
– The Canadian dollar fell to a 20-month low as U.S. manufacturing
picked up in May, adding to evidence a strengthening U.S. economy is
outpacing its neighbor.
The Australian: Falling dollar cools Reserve on rate cuts.
– The Reserve Bank hopes and expects the Australian dollar will fall
further in coming months, which could spell the end of interest rate
cuts.
Investing.com: EUR/USD dips as U.S. factory data bolsters dollar.
– The euro weakened against the dollar on Tuesday after data revealed
factory orders are on the rise in the U.S., which convinced investors
anew that the Federal Reserve may be closer to tapering stimulus
programs that weaken the greenback to spur recovery.
Investing.com: GBP/USD remains near 1-month lows in cautious trade.
– The pound continued to trade near one-month lows against the U.S.
dollar on Tuesday, despite positive U.K. data as markets remained
jittery ahead of policy meetings by the European Central Bank and the
Bank of England later in the week.
New Zealand Herald: NZ dollar edges up in overnight trading.
– The New Zealand dollar edged up as investors increased their holdings
in the local currency after a 6.7 per cent slide last quarter amid
expectations super-loose monetary conditions in the US will end this
year.
Bloomberg: Gold climbs a 3rd day to extend rebound from 34-month low.
– Gold declined for the first time in three sessions as improving U.S.
economic data strengthened the case for the Federal Reserve to slow the
pace of stimulus and as a rising dollar cut the appeal of alternative
investments.
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