Forex Trading News
Dollar, Euro, Pound & Yen

00:27 Thursday 17 June, 2010

Canada’s dollar retreated from the highest closing level in more than a month as renewed concern over Europe’s sovereign-debt crisis made investors wary of riskier assets such as growth-linked currencies.

The loonie extended its drop after a report showed housing starts fell more than forecast last month in the U.S., the nation’s largest trading partner. The European Union denied a report that the International Monetary Fund, the EU and the U.S. are putting together a 250 billion-euro ($307 billion) credit line for Spain.

“Yields of some of the weaker European members are rising,” Camilla Sutton, director of currency strategy at Bank of Nova Scotia, Canada’s third-largest lender, said by phone from Toronto, referring to Spain and Greece. “That’s pushing risk aversion slightly higher, which is weighing on the Canadian dollar.”

00:21 Thursday 17 June, 2010

The U.S. Congress will act if China fails to raise the value of its currency, the yuan, House Ways and Means Committee Chairman Sander Levin said.

“Seven years of patience from the United States and the international community have run out,” Levin, a Michigan Democrat, said today at a hearing in Washington. After the Group of 20 world leaders meets this month, “if China does not act and the administration does not respond promptly thereafter, the Congress will act.”

22:19 Wednesday 16 June, 2010

Jim Rogers, chairman of Rogers Holdings, said he is buying euros even as he predicts that bailouts for European nations will eventually destroy the single currency.

“That’s not the way it’s supposed to work,” Rogers said in an interview at the Rafael Del Pino Foundation in Madrid today. “I don’t think it’s good for Europe, and I don’t think it’s good for the world to bail out people who have failed.”

The euro lost 14 percent against the dollar this year as European Union nations struggled to contain budget deficits more than triple the bloc’s 3 percent limit. Last month the EU announced a 750 billion-euro ($923 billion) rescue mechanism to stem contagion from Greece as the risk premium on Spanish and Portuguese bonds surged.

“Debasing what has been a strong currency and making it weaker and weaker is in the end going to destroy the euro,” Rogers said. “In the interim, I’m long the euro.”

Still, Rogers said he bought euros this week and may buy more because investor sentiment has turned too negative in the short term. It will take 10 to 15 years for the currency to disappear, he said.

09:06 Wednesday 16 June, 2010

The dollar traded near the strongest level in a week against the yen amid increasing signs the world’s largest economy is gathering momentum.

The greenback strengthened versus 14 of its 16 major counterparts before a report today that economists said will show U.S. industrial production expanded in May by the most in four months, adding to evidence the world recovery will shrug off Europe’s debt crisis. The yen may fall on speculation Asian stock gains will spur demand for higher-yielding investments.

“It’s the case that the U.S. economy is outperforming,” said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., a unit of the world’s largest interdealer broker. “The U.S. dollar should do quite well. You’ve got to be short yen basically.”

09:03 Wednesday 16 June, 2010

The euro may appreciate to the highest level in three weeks as investors close out bets for declines in the shared currency, according to Barclays PLC.

The euro’s move today beyond its 21-day moving average of $1.2227 could spur further gains to $1.2475, the highest since May 24, according to MacNeil Curry, a technical strategist at Barclays in New York.

“This price action is being more driven by short covering than new positions,” Curry said in a telephone interview. “Markets are throwing out conflicting signals, which is indicative of short selling.” A short is a bet the price of an asset will decline.

08:03 Wednesday 16 June, 2010

Russia may add the Australian and Canadian dollars to its international reserves for the first time after fluctuations in the U.S. dollar and euro.

“Adding the Australian dollar is being discussed,” Alexei Ulyukayev, the central bank’s first deputy chairman, said in an interview at an event hosted by Bloomberg in Moscow. “There are pros and cons. We have added the Canadian dollar but haven’t yet begun operations” with the currency.

Russia’s reserves are made up of 47 percent U.S. dollars, 41 percent euros, 10 percent British pounds and 2 percent Japanese yen, Ulyukyaev said in November. That’s a shift from 2006, when the central bank said it held 50 percent of its reserves in dollars, 40 percent in euros and the remaining 10 percent in yen and pounds. Russia’s international reserves, the world’s third biggest, reached $458.2 billion on May 14.

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