LONDON (Reuters) – “We take care of our own,” wrote New Jersey’s Bruce Springsteen and that sums up why the dollar could well rise as efforts to repair the damage caused by superstorm Sandy stimulate the U.S. economy.
With plentiful natural resources including shale gas and oil on tap, the U.S. economy is well placed to generate dollar-positive domestic growth as it repairs and rebuilds after the storm.
LONDON, Oct 22 (Reuters) – Good news on the British economy
last week could not stop sterling falling against the euro.
Perhaps, with the euro zone crisis in abeyance, investors
are less inclined to buy sterling as a bulwark against the risk
of euro depreciation.
LONDON, Oct 19 (Reuters) – If the Japanese yen is to weaken
further against the dollar, as the Tokyo authorities
hope, it will need more of a driver than just offshore
acquisition activity by Japanese corporates.
The authorities will have to do some of the heavy lifting
through more monetary easing or foreign exchange intervention.
LONDON, Oct 9 (Reuters) – Buying New Zealand dollars and
selling Singapore dollars may have merits at a time
when major exchange rates are holding in ranges.
An important factor in the New Zealand dollar’s favour is
the performance of prices for the country’s main commodity
LONDON, July 27 (Reuters) – As competitors await Friday’s
opening of the Olympic Games to begin their quest for gold
medals, they may not be alone in their pursuit of the precious
Gold, set for its best week of gains since late May, may go
higher still, even after being boosted on Thursday by European
Central Bank President Mario Draghi’s pledge to do whatever was
needed to safeguard the euro.
LONDON, July 10 (Reuters) – Euro zone money market desks are
feeling the unintended consequences of the European Central Bank
(ECB) cutting its deposit rate to zero.
The ECB’s deposit rate usually acts as the floor for money
market rates and represents a safe haven where banks can park
money with the central bank to avoid counterparty risk – the
risk that a private borrower might prove unable to repay a loan.
LONDON, July 6 (Reuters) – Going short of euros against the
Russian rouble might have some merit after Thursday’s
European Central Bank (ECB) interest rate cut.
The euro has broken below its 200-day moving average (dma)
against the rouble and may be poised to test its 55-dma, which
is currently at 40.1675.
LONDON (Reuters) – Any euro bounce against the dollar exchange rate in the wake of Sunday’s Greek election might be limited with investors and reserve managers ready to sell into a rally.
The harsh reality may be that investors, including reserve managers, take the view that a long, hard road for the euro zone still lies ahead.
LONDON (Reuters) – Once bitten, twice shy Asian central bank reserve managers could steer clear of adding even more euros to reserves as the euro zone crisis lumbers on.
China, with the world’s largest foreign exchange reserves of $3.3 trillion, may be a case in point.
LONDON, June 11 (Reuters) – The European Union-funded rescue
plan for Spain’s debt-laden banks raises as many questions as it
answers and could therefore leave the euro vulnerable.
Sellers of euros are already said to be clustering in
the $1.2650-80 area, looking for a re-test of Friday’s $1.2435