Aussie Falls as RBA Cut Growth Forecast

The Australian dollar tumbled as the Reserve Bank of Australia revised its growth forecast for this year downwardly, spurring speculation that more interest rate cuts will follow.The RBA forecast that nation’s gross domestic product will rise 3 percent, compared to the previous estimate of 3.5 percent. Inflation growth was revised from 3 percent to 2.5 percent. The central bank wrote in its policy statement:   ...

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Euro Drops Ahead of Elections on Weekend

The euro was falling today as elections in European countries this weekend and the next week add to uncertainty regarding the ability of the eurozone to withstand its financial crisis.Greece is the country that was most damaged by the crisis and its parliamentary elections on May 6 are very important for the well-being of the euro. As Holger Schmieding, a chief economist at Berenberg Bank, outlined:    The biggest...

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Pound Gains vs. Euro Ahead of Elections in France & Greece

The Great Britain pound gained against the euro today as Forex traders were nervous before the election in Greece and France this week. The currency fell against the US dollar despite the negative fundamental data from the United States.The French will vote in the final round of the presidential elections on May 6, while Greeks will choose a new parliament. Some participants use plenty of anti-euro rhetorics in their speeches....

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GBP/USD Falls After Greek Bondholders Suffer Losses

The Great Britain pound slipped versus the US dollar as investors shunned European assets after private holders of Greek debt suffered losses on Greece’s bonds. The currency was still up against the euro and the Japanese yen.Greece used collective action clauses to increase participation of investors in the bond swap program. As a result, the International Swaps & Derivatives Association announced that “a Restructuring Credit...

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UK Pound Gains against the US Dollar

The UK pound is rising against the US dollar, enjoying gains not seen for more than a week. The latest interest rate decision by the Bank of England is to keep it the same. Additionally, the Bank of England is going to keep its debt-purchase program on hold for now.The news that the Bank of England doesn’t feel it needs to continue with its quantitative easing program is welcome to many Forex traders, and is providing a measure...

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UK Pound Declines against US Dollar

UK pound is declining against the US dollar today, thanks to general risk aversion weighing on high beta currencies, as well as disappointing economic data out of Great Britain. Against the euro, sterling is struggling as well, although there have been swings between gains and losses.The lastest UK housing data has been disappointing, showing that February housing prices were down 0.5% from the previous month. The news is discouraging...

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GBP/USD Falls After Greek Bondholders Suffer Losses

The Great Britain pound slipped versus the US dollar as investors shunned European assets after private holders of Greek debt suffered losses on Greece’s bonds. The currency was still up against the euro and the Japanese yen.Greece used collective action clauses to increase participation of investors in the bond swap program. As a result, the International Swaps & Derivatives Association announced that “a Restructuring Credit...

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Pound Falls as GDP Shrinks

The Great Britain pound fell today after a government report showed that the UK economy unexpectedly declined in the first quarter of this year, reducing appeal of the nation’s currency.Britain’s gross domestic product dropped 0.2 percent in the first quarter of 2012, following the drop by 0.3 percent in the previous quarter. Traders were frustrated as analysts predicted a 0.1 percent increase. Gross value added grew 0.2 percent...

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Rand Gains for Second Day on European Bonds & US Corporate Profits

The South African rand gained today for the second day after yields on European bonds fell, easing nervousness about Europe’s troubles, and as US corporate profits were above forecasts.Falling yields for Spanish, Italian and Dutch bonds gave investors hope that Europe may yet emerge from its financial crisis. Apple reported that it almost doubled its profit in the second fiscal quarter as demand for iPhone grew in China. All in...

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Aussie Goes Down as CPI Growth Below Expectations

The Australian dollar fell today as a government report showed that nation’s consumer prices rose in the last quarter far slower that was anticipated by market analysts, triggering speculation about an interest rate cut.Australia’s Consumer Price Index rose 0.1 percent in the first quarter of 2012, while much bigger growth by 0.7 percent was predicted by economists. The trimmed mean CPI (core CPI) increase 0.3 percent, while forecasters...

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Aussie Goes Down as CPI Growth Below Expectations

The Australian dollar fell today as a government report showed that nation’s consumer prices rose in the last quarter far slower that was anticipated by market analysts, triggering speculation about an interest rate cut.Australia’s Consumer Price Index rose 0.1 percent in the first quarter of 2012, while much bigger growth by 0.7 percent was predicted by economists. The trimmed mean CPI (core CPI) increase 0.3 percent, while forecasters...

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Japanese Yen Mixed Today

Japanese yen is mixed today as Forex traders look for direction. There is a lot to think about today, in terms of news and forecasts, and currencies are part of the confusion. Yen has slipped against the euro after choppy trading, but is higher against the pound and the dollar.Japanese yen is down against the euro, which is gaining ground on the enthusiasm surrounding a solid Dutch bond auction — in spite of the recent resignation...

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Euro Rangebound in Forex Trading

Euro is mostly rangebound today, making small gains against the US dollar, after a Dutch bond auction proved reasonably successful. The euro has been struggling lately due to concerns about the political stability of eurozone countries, as well as continued worries about Spain.Earlier, a bond auction in the Netherlands was deemed a success. There had been some questions about the bond auction, since the resignation of Prime Minister...

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US Dollar Index Gains as Traders Consider Consolidation

Yesterday’s buoyant tone and risk appetite have receded, leaving the US dollar to log gains against some currencies right now. The dollar index is heading higher, as the greenback gains against some of its major counterparts, especially the euro and the yen.Yesterday, better news out of Europe, combined with an enthusiasm for stocks, led to a lower US dollar. The dollar index dropped below 80 as many traders looked for better...

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Bank of Canada Comments Send Loonie Higher

Right now, the Canadian dollar is seeing gains against nearly all of its major counterparts as the Bank of Canada comes out sounding a bit hawkish. Loonie is finding support in general risk appetite as well, and receiving some help from higher oil prices.Everything seems to be going right for the Canadian dollar today. The BOC came out and said that putting a stop to stimulus measures might be a priority, and many are taking that...

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Euro Lower Against Many Counterparts

Euro is lower against many of its counterparts today, dropping as concerns about the European debt situation continue to dominate the news. Spain is expected to auction off bonds today, and there are concerns about climbing yields. Additionally, there are expectations of a drop in investor confidence in Germany.Concerns about the eurozone are dominating news today as Forex traders consider that the sovereign debt situation might...

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Obama threatens veto of highway bill over Keystone XL pipeline

Time for another showdown over energy policy.  House Republicans included a provision in the new highway bill extension (five months) that would force the Obama administration to approve the complete construction of the Keystone XL pipeline.  The White House reacted about as well as one would imagine:The White House on Tuesday threatened to veto House legislation to extend transportation programs because it contains...

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CBS/NYT poll shows dead heat between Obama, Romney at 46%

So much for that eight-point lead in the secretly-weighted CNN poll, eh?  CBS gives us a sneak peek at their first general-election poll of the season, in partnership with the New York Times, and finds a dead heat in the mid-40s:Mitt Romney has closed the gap with President Obama among registered voters, a CBS News/New York Times poll released Wednesday found, putting the former Massachusetts governor in a dead heat with...

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Great news: Senate record for shirking responsibility to continue through 2012 elections

Whew. For a while there, we thought that the streak might be coming to an end:Senate Budget Committee Chairman Kent Conrad (D-N.D.) bowed to pressure from fellow Democrats on Tuesday and postponed a committee vote on a 2013 budget resolution, most likely until after the November elections.Conrad on Wednesday will begin a committee markup of a resolution based on the Bowles-Simpson deficit recommendations, but told reporters there...

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Congresswoman lets the air out of the inflated student loan industry, says there’s no reason for it

In a radio interview today, North Carolina Republican Rep. Virginia Foxx recounted the way she worked her way through college and said “there’s no reason” for students to graduate with $80,000 or $200,000 in student-loan debt.ThinkProgress flagged the interview as though it somehow reflected poorly on Foxx, but I really fail to see how she’s not offering a hopeful message. She’s essentially just saying, “Hey kids, you don’t have...

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