Concerns for Europe’s Economy Make Zloty Weaker

The Polish zloty fell today on the renewed concerns for the Europe’s fiscal condition and the ability to fight the budget deficits. For now the currency tries to regain its strength but encountered the resistance.

The Standard & Poor’s said that the downgrades of the credit rating most likely would continue as the deficits and the demographics put pressure on the finances. It looks like Ireland now added to the list of countries, which are causing strongest concerns.

A Disappointing U.S. Durable Goods Orders Report Could Add Further Weight Onto the Greenback and Lead Traders to Seek Safety

Durable goods orders in the world’s largest economy are forecasted to drop 1.0 percent in August after climbing 0.4 percent the month prior. These orders are expected to last more than three years, and reflect optimism in the economy. At the same time, the reading serves as an indicator regarding output to come. In this case, economists are forecasting that there was a lack of consumer confidence during the month of August.

Canada’s Dollar Drops on Lower Consumer Prices

The Canadian dollar has fallen today after the consumer prices unexpectedly decreased, spurring the speculations that the central bank would stop the interest rates increases when its policy makers will meet next month.

USD Traders Shift Focus to FOMC Rate Decision

The Federal Open Market Committee is expected to keep their benchmark interest rate unchanged at 0.25% as the recovery continues to face major hurdles. Last month, the committee said that rates are likely to remain “exceptionally low for an extended period.” This wording has been unchanged from the previous nine releases, and any change in language at tomorrow’s meeting will likely stir volatility in the FX markets.

Risk Appetite Wanes, Euro Weakens

The euro weakened today, after it previously jumped to the highest level in more than a month, as the concerns resurfaced that some European banks may experience significant losses because of the global economic crisis and on the worries for Ireland’s economy.