Euro Drops as Talks Between Greece & Creditors Near to Conclusion

Posted on February 11, 2012 by

The euro declined today before results of talks between Greece and its creditors will be revealed. Traders are nervous as the outcome of the discussions is uncertain and they thought that keeping the euro is too risky. The talks regarding a proposed debt “haircut” for Greece have become too long, indicating that an agreement is hard to achieve. It looks like the main problem remains the same — unwillingness (or inability) of Greece to accept austerity measures that the European Union, the International Monetary Fund and the European Central Bank demand from the country. Jean-Claude Juncker, Prime Minister of Luxembourg, said that Greece may be … Continue reading →

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Japanese Yen Gets a Boost on Greece

Posted on February 11, 2012 by

Japanese yen is heading higher today as concerns about Greece once again take center stage. While Greek Prime Minister Lucas Papademos insisted that some progress was made over the weekend, he also pointed out that there are still some conditions left. The unresolved situation is adding to the uncertainty that is prompting risk aversion today.   As a result of the risk aversion in the markets, Japanese yen is heading higher. Yen is considered a stable currency — a safe haven currency. And, right now, with concerns about European currencies high, it is … Continue reading →

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UK Pound Gains against a Weakened Euro

Posted on February 11, 2012 by

UK pound is gaining against a weaker euro today, heading higher as worries about Greek debt resume. Greek talks have been suspended for a short time, even though Greek PM Lucas Papademos said that some progress had been made recently. The pound, though, is down against the US dollar as risk aversion sets in.   Sterling is pulling back today against the US dollar, following a general rally in January. Equities saw some gains recently, thanks to improved economic data, and that helped the pound. Now, though, risk aversion is creeping back in and equities … Continue reading →

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Brazil’s Real Down as Traders Await End of Greek Troubles

Posted on February 11, 2012 by

The Brazilian real dropped today as uncertainty about an outcome of the discussion about reduction of Greek debt made traders sell riskier currencies and stick to safer assets. The story of Greek debt was dragging for too long and Forex traders are afraid that it may end with a disorderly default. There were some positive macroeconomic indicators from Europe, but that wasn’t enough to alleviate fears. All currencies, except for safer ones, usually suffer in times of uncertainty and Brazil’s real behaved according to this rule today. USD/BRL climbed from 1.7165 to 1.7280 as of 16:18 GMT today. The currency pair has reached … Continue reading →

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Euro Holds Steady as Traders Await News from Greece

Posted on February 11, 2012 by

Euro is holding steady right now as Forex traders wait for news about what’s next for Greece. Financial markets around the world are waiting to see whether or not Greece will accept the austerity measures that are required for a bailout. If Greece accepts, 130 billion euros will be offered and the country will avoid default. If Greece refuses the austerity measures, it could mean a default — and the destabilization of the entire eurozone.   Right now, there is just enough hope that the deal will get done that the euro is holding steady. While off highs seen … Continue reading →

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Aussie Finds Support in Forex Trading

Posted on February 11, 2012 by

Aussie is finding support in forex trading today as Forex traders scramble to make up for the fact that they had priced in a 0.25% cut to the interest rate. Instead of cutting, though, the Reserve Bank of Australia kept rates steady at 4.25%. The central bank considers the economic progress Down Under to be sufficient to allow for yields to remain higher.   Aussie’s support is mostly against the US dollar, though, and even then the currency pair is mostly rangebound. Aussie is also slightly higher against the euro and the UK pound. European currencies are managing to hold their own right to a certain extent on the hopes … Continue reading →

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Aussie Jumps to Six-Month Record as Stevens Surprises Traders

Posted on February 11, 2012 by

The Australian dollar climbed today, erasing yesterday’s losses versus the US dollar and the Japanese yen and reaching the highest level in six months against the greenback, after the Reserve Bank of Australia surprised Forex traders by keeping its interest rates unchanged. The Australian currency was falling yesterday as a report showed that retail sales fell 0.1 percent (on a seasonally adjusted basis) in December from November. Another reason for the drop was a deteriorating sentiment about the ability of Europe to deal with its crisis. The RBA removed all negativity today by keeping its main interest rate at 4.25 percent, while most analysts were pretty … Continue reading →

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Market Sentiment Shifts, CAD Goes Upward

Posted on February 11, 2012 by

The Canadian dollar gained versus its US counterpart and the Japanese yen, while fell against the euro, as Forex traders view the talks about new portion of a bailout to Greece in the positive light again. Traders constantly change their opinion regarding what happening in Europe. Currently their mood is positive because of speculations that Greece and the so-called“troika” (the European Union, the European Central Bank and the International Monetary Fund) are devising final drafts of the rescue program for Greece. Additionally, German Chancellor Angela Merkel reiterated her pledge to keep Greece in the eurozone. Such statement shows that leaders of the EU are serious about supporting … Continue reading →

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Malaysian Ringgit Rises as FX Market Keeps Good Sentiment

Posted on February 11, 2012 by

The Malaysian ringgit, as well as other Asian currencies, appreciated today as the Forex market kept positive mood from yesterday and traders were hopeful about resolution of Greek problems. Market participants again feel optimism on signs that talks about a new round of bailout for Greece progress and are nearing to conclusion. The International Institute of Finance said that the discussion between Greece and private bondholders was “constructive”. Furthermore, there is speculation that China may aid Europe. USD/MYR fell from 3.0125 to 3.0030 as of 10:34 GMT today. If you have any questions, comments or opinions regarding the Malaysian Ringgit, feel free to post … Continue reading →

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Franc Weakens as Greek Talks Progress

Posted on February 11, 2012 by

The Swiss franc was down today as tensions about Greece eased and Swiss officials repeated that the currency is too strong and hurting nation’s exporters, therefore it should be weaker. The franc is still considered a safe currency, even though its status was hurt by the euro-peg, and today there is less need for safety among Forex traders. Thomas Jordan, Vice-Chairman of the Governing Board of the Swiss National Bank, spoke yesterday, suggesting that the strength of the Swiss currency is still harming the nation’s economy. Jordan said: The situation remains challenging for large sections of the economy – even at the current exchange rate, … Continue reading →

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