Aussie hit by RBA cut, U.S. dollar also struggles
May 01 2012 4:28 AM EDT
The Australian dollar fell sharply on Tuesday after the Reserve Bank of Australia slashed rates by a deeper-than-expected 50 basis points while the U.S. dollar hit a fresh two-month low versus the yen as soft U.S. data weighed on the greenback.
Shares, euro slip as Spain slides into recession
April 30 2012 11:18 AM EDT
Global shares edged lower on Monday, snapping a four-session winning streak, and the euro slipped against the dollar after weak growth data from Spain added to fears of a deepening euro-zone recession.
China Sets Record High Ceiling For Yuan
April 27 2012 2:00 PM EDT
China's central bank expanded the yuan's reference rate against the dollar to another record high on Friday, in a nod to calls from the U.S. to loosen growth restrictions on the currency's value.
Spanish economy in huge crisis after credit downgrade
April 27 2012 9:01 AM EDT
Spain's sickly economy faces a crisis of huge proportions, a minister said on Friday, as unemployment hit its highest level in two decades and Standard and Poor's weighed in with a two-notch downgrade of the government's debt.
Asian Stocks Up Despite Spain Downgrade; Euro Down
April 26 2012 8:36 PM EDT
Asian shares inched up Friday, tracking U.S. stocks which jumped overnight on strong U.S. housing data and earnings, but concerns over the health of European banks weighed on investor risk appetite after Standard & Poor's downgraded Spain's rating.
Euro, shares gain on renewed growth focus
April 26 2012 9:50 AM EDT
World shares rose and the single currency hit a new three-week high against a weaker dollar on Thursday, fuelled by the U.S. Federal Reserve's commitment to support growth and signs of some pressure in Europe to move away from harsh austerity.
Fed's Reassurance, Earnings Optimism Lift Asian Shares
April 25 2012 9:09 PM EDT
Asian shares gained on Thursday, retaining positive momentum as the Federal Reserve reassured markets that it will keep its highly accommodating stance to support growth, and optimism grew over strong corporate earnings after Apple Inc's robust results.
Euro touches then falls from 3-wk high vs. dollar; Fed ahead
April 25 2012 1:26 PM EDT
The euro pulled back from a three-week high against the dollar hit earlier on Wednesday as investors repositioned ahead of a policy statement from the Federal Reserve.
London Session: UK dips back into recession and the markets wait for the FOMC
April 25 2012 8:28 AM EDT
Risk assets are generally higher again today; however it's getting harder to explain why. Perhaps the markets don't believe that the UK is back in recession and experiencing the first double-dip since the 1970'S (more on that later) or maybe the latest results from Apple is buoying markets. The tech giant sold more than 35m iPhones in the first quarter and it sold 150% more iPads than at the same point last year. This has dispelled fears that the company that represents 7% of the entire...
Euro Hits 19-Month Low Versus Sterling as UK Data Surprises to Upside
April 18 2012 7:37 AM EDT
The euro (EUR) plummeted to a 19-month low against the British pound (GBP) on Wednesday, as the UK economic data surprised to the upside lending support to the Sterling, while the single currency continues to be under stress amid renewed concerns over the sovereign debt crisis in the eurozone.
GBP Trades Higher Ahead of Key Data
April 18 2012 3:28 AM EDT
The British pound (GBP) traded higher against its major counterparts on Wednesday, ahead of the Bank of England’s (BoE) April meeting minutes and unemployment data.
Room for GBP Gains Against AUD in Short-Term
April 17 2012 10:39 AM EDT
Developments in Australia and the UK of late suggest that the British pound (GBP) is poised to make gains against the Australian dollar (AUD) in the short-term.
Spanish Debt Fears Cap Asian Shares, Hurt Euro
April 16 2012 10:04 PM EDT
Asian shares were capped while the euro eased Tuesday, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt.
GBP – Preview: Inflation Data To Tie the Hands of BOE?
April 16 2012 3:35 PM EDT
Release: UK CPI y/y (Mar) Consensus Forecast: 3.5% Previous: 3.4% Release: UK RPI y/y Consensus Forecast: 3.6% Previous: 3.7% Date/Time: 04/17/12 4:30AM EDT (08:30 GMT)
AUD – Preview: RBA Minutes A Reminder of Dovish Central Bank
April 16 2012 11:50 AM EDT
The Australian dollar has had an eventful month as it was sold off sharply among concerns about China at the start of March and extending through April. However a very strong employment report last week helped stabilize the Aussie and helped it to push above an important resistance trendline in the AUD/USD pair.
Austerity to Trigger New EuroCrisis
April 16 2012 8:25 AM EDT
Rajoy's austerity plan won the support of leaders from the 12 regions where his Peoples Party governs on Sunday. The PP's regional Presidents pledged to cut public services, eliminate duplication between different levels of government and write deficit targets into their budget law. ECB officials are divided over the steps to tame the crisis in Spain on growing expectations that Spain will next to seek a European bailout.
Weekend: Early Markets Drifting, Looking to Earnings, Spain, China for Cues
April 16 2012 6:28 AM EDT
Concerns stemming from the European sovereign debt crisis extending into Spain continued to affect markets in early trading. As Spanish 5 year CDS, a measure of insurance costs against Spanish default, traded near its all-time high again, Spanish leaders are continuing to push through additional budget cuts to bring its debt down from 68.2% currently. Although market reaction is relatively muted due to the safeguard provided by the ECB's LTRO lending earlier this year, traders will continue t...
Unprecedented Presidential Posturing
April 12 2012 1:47 PM EDT
Last week, responding to President Obama's latest populist assault on the wealthy, I issued a commentary in which I explained why his ideas about American economic history were fundamentally flawed. As dangerous and erroneous as those views are, at least I can cut the President some slack for commenting on a subject in which he really has no basis for expertise. Hailing from academia and local community organizing, Barack Obama likely did not spend huge amounts of time boning up on economic h...
Central Banks’ Soothing Words Help Sentiment
April 12 2012 11:57 AM EDT
The beginning of the week saw a sharp deterioration in sentiment as yields in span Italy surged and equities sold off sharply. However since then financial markets have gone into a correction phase and we've seen general positive risk appetite. Sentiment has been buoyed by comments from central bank officials from around the globe.
Bernanke to Tighten Up Banks Under Basel III
April 10 2012 1:43 PM EDT
US Fed Chairman Bernanke says banks need more capital. US Federal Reserve Chairman Ben Bernanke said Monday banks need to have more capital at hand in order to ensure the financial system is stable.