Every Day FB: September 2011

Swiss Franc Weakens This Week, Reverses Downtrend by Weekend

The Swiss franc was down for the second week as prospects of peg of the currency to the euro significantly reduced appeal of the franc a safe asset.

The uncertain economic situation on market creates great demand for safer currencies. Governments, worried by resulting appreciation, attempt to intervene to rein excessive appreciation of such currencies. Today, the Swiss franc was one of the currencies that felt pressure.

The Swiss franc weakened for the second trading session as the positive macroeconomic data from Europe boosted stocks and commodities, reducing investors’ need for safety of the franc.

The Swiss franc snapped its decline today as the speculation about potential slowdown of the global economic growth returned attractiveness to safe currencies.

Franc Falls as Bernanke Improves Sentiment on Markets

Friday, August 26th, 2011 Swiss franc

The Swiss franc slumped today after Federal Reserve Chairman Ben. S. Bernanke spoke today, improving sentiment on markets, while rumors abound that Switzerland’s policy makers are preparing another action to weaken the Swiss

The Swiss franc gained today for the second day, snapping yesterday its three-day downfall versus the US dollar and the euro, as the Swiss National Bank hasn’t announced new measures to curb franc’s strength.

The Swiss franc climbed today against the US dollar, extending its rally for the third day, after the non-farm payrolls showed that US employers weren’t adding jobs last month.

The franc plunged today, posting the biggest decline against the euro in all times, after the Swiss National Bank decided to set limit of franc’s appreciation versus the euro.

The Swiss franc fell today against most major currencies as Economy Minister Johann Schneider-Ammann said that the currency is “massively overvalued” even after the central bank pegged the franc to the euro. The franc advanced against the euro today.

The Swiss franc rose today even after the Swiss National Bank left the benchmark interest rate at zero at pledged to maintain the peg of the nation’s currency to the euro.

The Swedish krona fell for another day this Wednesday as optimism in the Eurozone and negative releases in the Nordic country declined attractiveness regionally for assets in Sweden.

The Swedish krona rose today to the highest level in two years versus the US dollar on the speculation that the central bank would perform its monetary tightening plans and as the economic data was favorable.

The Swedish krona gained today after the report showed the retail sales grew more than predicted, increasing the probability of the interest rates hike.

The Swedish krona rose for the second day versus the US dollar and reached the highest level in 10 years against the euro on the speculation that the strong global economic growth will increase demand for Sweden’s assets.

The Swedish krona strengthened today, rising to the highest level in two and a half years versus the US dollar, after the report showed that Sweden’s economic growth beat forecasts.

The Swedish krone declined today as the inflation pressure weakened, reducing need for the central bank to increase the interest rates.

The Swedish krona strengthened today after the government raised its growth forecast for the nation’s economy, adding to reasons for the central bank to raise its interest rates.

The Swedish krona jumped to the highest level in more than two and a half years after the central bank raised the interest rates to slow the inflation.

The Swedish krona today fell against all its

most-traded peers as the government slashed its growth forecast for the nation’s economy, spurring speculation that the central bank won’t be able to increase lending rates.

The Swedish krona fell as the report showed that manufacturing in Sweden contracted last month, reinforcing outlook that the nation’s central bank would cut interest rates.

Last week was very important for the US dollar because the currency reversed its bearish trend and strengthened versus most of its counterparts. This week can be even more important as it may confirm the trend or break it.

The Japanese yen rose sharply on the last Friday after the earthquake hit the country, spurring risk aversion and demand for the currency as a safe haven. Today the currency slipped as the government and the central bank attempt to deal with the results of the disaster. Can the Japanese currency still profit from the fears, caused by the tremor, or it’s going to extend its losses?

The euro surged last week as the European leaders made some preliminary agreements about resolving the sovereign debt crisis. The improving sentiment about the ability of Japan to recover from the disaster also helped the currency. Can the shared European currency maintain its upward momentum this week?

This week promises to be very important for the US dollar as there will be many fundamental reports, including the very important

non-farm payrolls. Will they confirm the tendency of the US economy to improve, increasing the probability of an interest rates hike? The answer to this question can define the behavior of the US currency for a long time.

This week has started with market sentiment turning to risk aversion mood and such sentiment may remain for the rest of the week. This can be both positive and negative for the US currency

The euro started this week very poor. The currency currently shows weak attempts to regain its footing, but most analysts have a very negative outlook for the euro in the near-term. The reason remains the same: sovereign-debt crisis.

Iraqi dinar can be an interesting option for traders who look for currencies with great potential for profit. But such potential often comes with higher risk. How investor can predict performance of the dinar?

Following the Friday’s US credit rating downgrade by Standard & Poor’s the Forex traders are wondering how will the currencies react tomorrow and where will the dollar head during the next few weeks.

The Swiss franc is considered one of the most attractive currencies (if not the most attractive) nowadays as the strength of the franc makes it preferable as a safe haven. With all the financial turmoil in Europe and America the safety of the currency is in high demand among investors. But the Swiss National Bank announced last week that it’s going to take measures for taming the excessive appreciation of the Swiss currency. How this step will affect the franc? Let’s look at the history of the bank’s decisions to see how interventions usually affect the currency.

The Great Britain pound fell during the previous week, but rose at the beginning of this week. Could it be a sign that the sterling is going to reverse its bearish trend? The currently available data shows that such case is unlikely.

The increased the interest rates today for its third meeting in a row to efficiently fight the accelerating inflation caused by the growing food and oil prices.

The Indonesian rupiah advanced today to the strongest level in almost three months as Indonesia’s economy expanded with the fastest pace in six years

The Indonesian rupiah advanced for the third day today on positive outlook for the biggest economy of Southeast Asia, caused by the inflow of foreign funds.

The Indonesian rupiah strengthened today as concerns about the European debt crisis eased, increasing appeal of riskier currencies.

The Indonesian central bank intervened, selling dollars, to support the Indonesian rupiah that was weakened by the pessimistic outlook for the currencies of the emerging markets.

The Israeli New Sheqel rose today as the difference between Israel’s and the US interest rates attracted investors to the currency.

The Israeli currency had the sharpest fall in 4 months today as the government is likely to increase a dollar purchasing program to stimulate the national currency.

The Chilean peso suffered with the side effects of positive reports in North America that attracted traders to purchase assets in the U.S., leaving emerging markets in a second plan for traders to invest their money, despite a considerable level of risk appetite in today’s session.

The Chilean peso oddly profited from a natural tragedy that impacted the country in the first night of this month, as speculations suggest that the reconstruction process in the country, will allow the country’s economy to accelerate.

Chilean Peso Profits from Earthquake Damage

The Chilean peso gained, cutting its losing streak, which it experienced for three weeks, on speculation that the government and insurers may start selling dollars, to pay for fixing the damage caused by the earthquake with a magnitude of 8.8 magnitude.

The Chilean peso declined today versus the euro as the global equities and the commodity prices dropped, feeling the impact of the banking troubles in Spain and the conflict on the Korean peninsula.

The Chilean peso weakened today against the euro as the industrial output and sales rose less than forecast and the mining production fell.

The Chilean peso rose today as the outlook for the exports of the raw materials improved after the US and China reported about the better-than-expected growth of the manufacturing.

The Chilean peso dropped today most in twenty years after the central bank announced its intention to purchase $12 billion in the

foreign-exchange market

The Chilean peso rose today as the inflation is expected to jump to the highest level in two years, causing the analysts to scrap forecasts that the interest rates won’t be increased.

The Chilean peso fell today as the economic data suggested that the US economy is slowing, therefore reducing demand from investors for

higher-yielding, but riskier, currencies.

The Great Britain pound fell today against the euro and fluctuated versus the dollar as the signs that the economy of the UK is weakening made the sterling less attractive to Forex traders.

The Great Britain pound weakened against the Japanese yen and slowed its advance versus the US dollar after the report showed the UK economy grew with slower pace in the second quarter.

The Great Britain pound gained against the US dollar as bad US

non-farm payrolls reduced attractiveness of the greenback. The sterling also moved higher versus the euro as traders are concerned about the European economy.