International Business Times

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Thu, 02 May 2013 18:31:59 GMT

• USD gains strength as data signals economic activity expanding

• ECB cuts interest rates to an all-time low

• CAD strengthens following a surprising trade surplus report

Euro Hanging on ECB Rate Cut Speculation

rogerbaettig — Thu, 02 May 2013 12:11:50 GMT

The euro steadied just below Wednesday's two week high ahead of the European Central Bank's meeting.

The currency traded at $1.3162 on Thursday morning as investors waited for bank President Mario Draghi's press conference following the meeting for the bank's plan to help pull the region out of the prolonged financial crisis.

ECB Rate Cut Could Boost Euro Value

rogerbaettig — Wed, 01 May 2013 13:25:06 GMT

With the European Central Bank's monthly meeting just a day away, the euro ticked up on rate cut expectations. The common currency neared a two week high on Wednesday and traded at $1.3191.

The euro has risen by about one percent since Jens Weidmann announced that a rate cut would be considered if economic data warranted it. Normally, speculation of a rate cut would put pressure on the currency, but in this case, many analysts say the weak eurozone economy has been more of a drag on the euro's value and a rate cut decision will be seen as a step toward growth.

GDP Bag of Tricks

rogerbaettig — Tue, 30 Apr 2013 12:52:13 GMT

If you’re not happy with the stumbling U.S. economy all you have to do is just wait a few more months. It seems the Bureau of Economic Analysis (BEA) will perform a little hocus pocus on the GDP numbers starting in July 2013. According to the Financial Times, U.S. GDP would become 3% bigger due to the new change in its growth calculations. fff It shouldn’t come as a surprise they are going to change the way this number is reported.

Decline in Eurozone Economic Confidence Adds to Growing Rate Cut Speculation

rogerbaettig — Tue, 30 Apr 2013 12:31:11 GMT

The euro improved on Tuesday morning following positive news that Italy had finally formed a government in the wake of February's inconclusive elections which left the nation without leadership.

The common currency ticked up to $1.31 on Tuesday morning after Italian stocks rocketed on Monday in response to the new Italian Prime Minister Enrico Letta's naming of a coalition on Saturday.

Weekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB

rogerbaettig — Mon, 29 Apr 2013 18:07:52 GMT

USD fell against most majors after investors speculate the Fed will continue its bond buying program.

EUR higher as Italy’s new govt. comes to power.

RMB trading stronger after PBOC relaxes its grip on the currency.

Greece Cuts Nearly 15,000 Jobs to Receive Next Bailout Installment

rogerbaettig — Mon, 29 Apr 2013 12:15:27 GMT

The euro traded at $1.30 on Monday morning as the eurozone headed into the week facing several pressures.

Growing speculation about the European Central Bank's meeting, scheduled for Thursday, is weighing on the common currency. Most are expecting the bank to cut its record low 0.75 percent interest rate at Thursday's meeting following a string of poor data that showed the eurozone's powerhouse economy, Germany, was being dragged down by the current economic climate.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Fri, 26 Apr 2013 17:40:35 GMT

• US GDP report grows concern of a struggling economy

• Euro faces challenges against the yen as investors look to cheaper imports

• JPY soared following unchanged BoJ policy

Eurozone to Focus on Structural Reforms

rogerbaettig — Fri, 26 Apr 2013 12:26:45 GMT

Rumblings that the euro may have found the light at the end of the tunnel kept the common currency trading steadily at $1.30 on Friday morning as eurozone officials optimistically concluded that no more major problems were foreseen in the near future.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Thu, 25 Apr 2013 17:25:53 GMT

• Sterling hit 2 month highs after strongest GDP reading in 2 years

• US weekly jobless claims report better than expected

• CAD benefits from US data, hitting its strongest level in a week

ECB Rate Cut Possible, But Not Definite

rogerbaettig — Thu, 25 Apr 2013 12:11:00 GMT

The euro ticked up on Thursday morning, reaching $1.3031 despite a disappointing purchasing managers' survey out on Tuesday.

The purchasing managers' index remained unchanged from last month's figure, but the steep decline in new orders was worrying for May's results. Most investors were more concerned with Germany's PMI, which indicated that business activity dropped sharply in April.

ECB Meeting Preview: Economists Expect Rate Cut, Markets Less So

rogerbaettig — Wed, 24 Apr 2013 19:27:27 GMT

The European Central Bank is set to release its interest rate decision next week on Thursday, May 2. However, economists are already talking about a potential rate cut.

No less than 10 banks have released notes in the past 24 hours calling for a rate cut, following the weaker than expected German IFO Business confidence survey and PMI release over the past two days.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Wed, 24 Apr 2013 18:19:33 GMT

• USD falls with negative durable goods data

• Euro trades lower on a combination of German data and possible ECB rate cuts

• Sterling edged higher as BoE announces credit stimulus

LTRO payback calm suggests unconventional ECB steps ahead

rogerbaettig — Wed, 24 Apr 2013 13:40:25 GMT

(Reuters) - The relaxed view of money markets to the quicker-than-expected repayment of the ECB's LTRO crisis loans suggests many players expect the central bank to delve back into its unconventional policy toolbox before the end of the year.

In the last two weeks banks have returned just over 10 billion euros and the average weekly payback has risen over the past four weeks by almost a third to 9.2 billion.

Eurozone PMI Fuels ECB Rate Cut Speculation

rogerbaettig — Wed, 24 Apr 2013 12:58:29 GMT

The euro declined on Wednesday in the aftermath of several reports of economic weakness the day before. The common currency was trading at $1.2975 at 8:43 GMT on Wednesday morning, at nearly a two week low.

A purchasing manager' survey showed that private sector activity was declining, and Markit Economics announced the region's composite index was 46.5, unchanged from the previous reading.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Tue, 23 Apr 2013 16:36:09 GMT

Commodity currencies pressured by weak overseas data – Aussie hits 6-week low

USD strengthens on positive PMI data

Euro slides to 2-week low on soft German data

Barroso Suggests that a Policy Shift is on the Eurozone's Horizon

rogerbaettig — Tue, 23 Apr 2013 12:17:04 GMT

The euro traded steadily at $1.30 on Tuesday morning as investors waited for the Spain's latest budget plan, set to be released later this week.

The nation's Finance Minister Luis de Guindos said the plan for the next few years will be focused on economic growth rather than deficit reduction.

Cyprus Bailout Swells to 23 Billion Euros, Larger Than Cypriot Economy

rogerbaettig — Thu, 11 Apr 2013 18:46:49 GMT

Cyprus' financial sector bailout has swollen in size, according to draft documents from the international creditors including the International Monetary Fund, the European Central Bank and the European Union.

Cyprus' bailout has swollen some 35 percent in just a few weeks, from an initial estimate of 17 billion euros to 23 billion euros Thursday.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Thu, 11 Apr 2013 16:52:03 GMT

• Dollar nears 100 yen mark

• Commodity-based currencies continue to strengthen

• Sterling soars on cautious optimism that UK will dodge triple-dip recession

Rehn Calls Out France as Weak Link in Eurozone

rogerbaettig — Thu, 11 Apr 2013 12:37:13 GMT

The euro stumbled on Thursday morning and traded down to $1.30. Growing financial, political and social problems in the region have been weighing on the common currency recently, and many aren't expecting a resolution anytime soon.

The European Commissioner for Economic and Monetary Affairs, Olli Rehn, warned that France is beginning to pose a large risk for the region on Wednesday.

Problems in the North and South Threaten the Eurozone

rogerbaettig — Wed, 10 Apr 2013 12:39:51 GMT

The euro climbed to $1.31 on Wednesday morning despite a growing anti-austerity push that has been gaining momentum over the past month.

Protests have been commonplace as climbing unemployment and harsh budget cuts have taken their toll on struggling nations; but now it seems resistance is ratcheting up as one by one, southern European countries are taking a stand against the eurozone's austerity-centered recovery plan.

Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD

rogerbaettig — Tue, 09 Apr 2013 16:25:20 GMT

• Dollar falls short of 4-year highs against JPY

• GBP soars on positive industrial data; gain seen capped by recession worries

• NZD poised to move higher

9/4/2013 - The Current Market Sentiment

rogerbaettig — Tue, 09 Apr 2013 16:22:30 GMT

The market participants are still trying to translate the stimulating wave which has been sent out from BOJ last week by showing extending possibility of its JGB maturities holding with doubling the amount of it has of them by the end of 2014 by buying what are from 60 to 70 trillion yen yearly.

You can see now the yield curve of JGB 10 years up to 0.53 from 0.45% at the time of these decisions and what’s below 0.5% before them and this can be read by different ways.

What is High Frequency Trading?

rogerbaettig — Tue, 09 Apr 2013 13:09:57 GMT

HFT is the acronym that much of the trading community loves to hate. If statistics are correct, it accounts for the overwhelming majority of market volume every day. It’s also so complex and secretive that a relative few know how it works.

It’s high frequency trading, or HFT. Here’s some of what you should know.

What is HFT?

Euro Steady at $1.30 As Portugal Looks for 1.3 Billion Euros to Cut

rogerbaettig — Tue, 09 Apr 2013 13:01:15 GMT

The euro continued to trade at $1.30 on Tuesday morning despite uncertainty following Portugal's rejection of European Union mandated spending cuts.

The common currency has been under a lot of pressure recently as many of the bloc's southern members have begun to openly resist the eurozone's austerity driven recovery plan.

The Portuguese Constitutional Court turned down the next round of budget cuts ordered by the EU which would have slashed spending on state workers and retirees.