Gertrude's Feed
May 10, 2013

Yen plummets to four-and-half-year low vs resurgent dollar

NEW YORK (Reuters) – The yen on Friday tumbled against the U.S. dollar to its lowest in more than four years on data showing Japanese investors were buying more foreign assets, with further losses seen likely as Japan’s aggressive monetary easing takes effect.

The dollar, on the other hand, rallied broadly as recent strong U.S. data in the labor market – last Friday’s robust nonfarm payrolls report and Thursday’s weekly jobless claims data – sparked talk the Federal Reserve may scale back its asset purchases.

May 9, 2013

Euro slides after two days of gains; dollar up vs yen

NEW YORK (Reuters) – The euro fell against the dollar on Thursday after two days of gains, hurt partly by a weaker-than-expected Spanish debt auction that served as a reminder to investors that the outlook for the euro zone’s weaker nations remained uncertain.

Demand for the dollar also increased following data showing U.S. initial jobless claims dropped to their lowest level in more than five years.

May 8, 2013

Euro up for second day as German data trims rate cut prospects

NEW YORK (Reuters) – The euro advanced against the dollar for a second straight session on Wednesday as an unexpected rise in German industrial output pared back prospects of a near-term interest rate cut in the euro zone.

Wednesday’s data followed another upbeat German industrial orders report, helping euro sentiment overall, while falling borrowing costs in peripheral euro zone countries have also bolstered Europe’s common currency of late.

May 7, 2013

Euro recovers after German data, but gains seen limited

NEW YORK (Reuters) – The euro firmed across the board on Tuesday after data showing German industrial orders beat forecasts but expectations the European Central Bank could ease monetary policy further could limit its gains.

The Reserve Bank of Australia, meanwhile, stunned the market earlier in the global session by cutting interest rates to a record low, undermining the Australian dollar, which fell to its weakest level in two months versus the U.S. currency.

Apr 23, 2013

The realities of a currency war

NEW YORK, April 23 (Reuters) – The world’s biggest developed
nations, particularly Japan and the United States, have engaged
in various efforts to lower interest rates to stimulate consumer
demand that some investors have taken to calling a “currency
war.”

Even though central banks are not directly intervening in
forex markets, what they’re doing amounts to a de facto forex
war because the effect is the same – weaker currencies.

Apr 23, 2013

Euro slides to two-week low versus dollar on soft German data

NEW YORK (Reuters) – The euro dropped to a two-week low against the dollar on Tuesday after weak German data raised concerns about the health of the euro zone economy, reviving speculation that the European Central Bank could cut interest rates.

A survey showed Germany’s private sector shrank for the first time in five months in April, overshadowing improvements in French data. The soft German data added to worries about the global economic outlook after earlier figures showed Chinese manufacturing growth slowed in April.

Apr 5, 2013

U.S. dollar slides after jobs data disappoints

NEW YORK (Reuters) – The U.S. dollar weakened against most currencies on Friday, hitting nearly two week lows versus the euro, as weaker-than-expected jobs data raised concerns that the pace of recovery in the American labour market has slowed down.

The poor U.S. jobs report along with downbeat economic indicators in the manufacturing and service sectors earlier this week should ensure that the Federal Reserve’s quantitative easing policy will be in place for some time, analysts said.

Apr 5, 2013

Dollar slides after jobs data disappoints

NEW YORK (Reuters) – The U.S. dollar weakened against most currencies on Friday, hitting nearly two week lows versus the euro, as weaker-than-expected jobs data raised concerns that the pace of recovery in the American labor market has slowed down.

The poor U.S. jobs report along with downbeat economic indicators in the manufacturing and service sectors earlier this week should ensure that the Federal Reserve’s quantitative easing policy will be in place for some time, analysts said.

Apr 4, 2013

A tale of two Japan stocks ETFs; hedging makes a big difference

NEW YORK (Reuters) – U.S. investors in two big funds that track Japanese stocks got a good lesson in the importance of currency hedging on Thursday.

The Bank of Japan jolted markets, unleashing the world’s largest monetary stimulus, with a commitment to inject $1.4 trillion into the economy in less than two years.

Apr 4, 2013

Euro slides vs dollar as ECB seen easing further; yen plunges

NEW YORK (Reuters) – The euro dropped to its lowest in more than four months against the dollar on Thursday after European Central Bank President Mario Draghi highlighted the downside risks to the euro zone economy, suggesting the bank could further slash interest rates.

The yen, meanwhile, fell sharply after the Bank of Japan announced aggressive measures to ease monetary policy, including a plan to double its holdings of bonds and stocks in two years.