The speculation that Japan’s policy makers would not be able to limit the yen’s gains pushed the New Zealand dollar down against the Japanese currency; the kiwi (as the NZD nicknamed) also fell against the US dollar as New Zealand trade balance posted the deficit for the first time in seven months.
The Bank of Japan‘s decision to intervene in order to support the nation’s economy reflects the concerns for the growth of the advance economies across the world. The New Zealand economy also gave reasons for the concern as the trade balance posted the deficit of NZD 186 million in July, the reading which is much worse than the figure of the previous month (the surplus of NZD 214 million) and the forecast (the deficit of NZD 28 million).
Tuesday, August 31, 2010
Saturday, August 28, 2010
Euro Follows Continental Stocks
The euro has continued its recovery trend against the dollar and the yen today as some more-or-less positive news spurred the growth of the stock market up from its bottom.
Positive profit reports of the biggest European companies inspired investors to buy the stocks today. The euro managed to grow against the safe haven dollar and yen for the second day, setting a new weekly maximum. Traders also reacted to the US jobless claims report, which wasn’t as bad as the previous one and didn’t disappoint the market participants.
Positive profit reports of the biggest European companies inspired investors to buy the stocks today. The euro managed to grow against the safe haven dollar and yen for the second day, setting a new weekly maximum. Traders also reacted to the US jobless claims report, which wasn’t as bad as the previous one and didn’t disappoint the market participants.
Wednesday, August 25, 2010
Yen Reaches New Decade Highs on Forex Risk Aversion
The expectations for the worsening of the global economic situation in the developed nations fueled the risk-averting mood in the foreign exchange market, pushing the Japanese yen to the new yearly maximums today.
The yen reached its new record high level against the US dollar since June 1995 and the strongest level against the euro since September 2001. A three-month high was reached against the Great Britain pound. As almost always with the yen, the reason for the gains lies not in the exceptional growth rates of the country but in the global risk aversion, which once again begins dominating the minds of the traders. The commentaries of the officials and the economic analysts that explicitly signal a second wave of the crisis don’t leave a chance for the high-yielding currencies against the safe haven currencies (such as yen).
The yen reached its new record high level against the US dollar since June 1995 and the strongest level against the euro since September 2001. A three-month high was reached against the Great Britain pound. As almost always with the yen, the reason for the gains lies not in the exceptional growth rates of the country but in the global risk aversion, which once again begins dominating the minds of the traders. The commentaries of the officials and the economic analysts that explicitly signal a second wave of the crisis don’t leave a chance for the high-yielding currencies against the safe haven currencies (such as yen).
Monday, August 23, 2010
Industry giants a study in contrasts
Top two insurers Suncorp and IAG are expected to deliver vastly different results when the pair unveil their end-of-year financials this week.
As Suncorp prepares to release a strong rise in net profit – tipped by analysts to be more than double last year’s result – struggling competitor IAG is forecasting a 50 percent reduction in profit once natural catastrophe and UK losses are taken into account.
While storm damages are expected to cut marginally into Suncorp’s insurance profit margin, analysts are predicting an overall net profit after tax between USD 720 million and USD 800 million – more than double last year’s result of USD 348 million.
As Suncorp prepares to release a strong rise in net profit – tipped by analysts to be more than double last year’s result – struggling competitor IAG is forecasting a 50 percent reduction in profit once natural catastrophe and UK losses are taken into account.
While storm damages are expected to cut marginally into Suncorp’s insurance profit margin, analysts are predicting an overall net profit after tax between USD 720 million and USD 800 million – more than double last year’s result of USD 348 million.
Sunday, August 22, 2010
Australian Dollar Falls This Week
Last week was volatile for the Australian dollar, but it generally declined against most other major currencies as the concern for the economic growth continues to haunt the markets.
The currencies linked to the growth had hard time to sustain their strength as signs of the slower economic growth were coming from all parts of the world. The main source of the worries is, of course, the US with its economic data, which causes the talks about the possible double-dip recession. But the traders’ concerns aren’t only about the US as Europe too reminded about its economic weakness. The forecast, that the report will show the worsening German business climate, significantly slashed the confidence in the European economy, as Germany was the main reason for the hopes in the brighter future for the EU fiscal conditions.
The currencies linked to the growth had hard time to sustain their strength as signs of the slower economic growth were coming from all parts of the world. The main source of the worries is, of course, the US with its economic data, which causes the talks about the possible double-dip recession. But the traders’ concerns aren’t only about the US as Europe too reminded about its economic weakness. The forecast, that the report will show the worsening German business climate, significantly slashed the confidence in the European economy, as Germany was the main reason for the hopes in the brighter future for the EU fiscal conditions.
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