December 2012 FX News

Dollar recovers in light trading 26 Dec at 5 AM The dollar has clawed back from two days of losses against the euro and the yen after light trading because of the holidays.

Business is unlikely to be back to normal until after the weekend as the markets in Singapore, Hong Kong and Australia remain closed. Friday also sees the closure of the market in the UK, although it is...

Dollar rallies as pressure placed on euro 18 Dec at 5 AM The dollar has hit an eight-day high against the euro as it rallies against a basket of currencies. The greenback was given a boost on Wednesday as the Federal Reserve indicated it intends to increase interest rates at some point next year. Previously the central bank had pledged to keep rates as close to zero as possible for the foreseeable...

Yen fights back as risk appetite slackens 9 Dec at 5 AM The yen has staged a comeback following a further drop in the price of oil reducing the appetite for risk with investors. Both the euro and the dollar, which have been enjoying multi-year peaks, have slipped against their Japanese rival. The euro fell from 149.79 yen to 148.59. The greenback dropped from 121.86 to 120.67 yen.

The...

Commodity currencies fight back 2 Dec at 5 AM The US dollar has dipped slightly after a broad commodity price rebound which has been good news for currencies including the Canadian, Australian and New Zealand dollars. A rise in the price of gold, copper and oil helped the Canadian dollar rise from a low of C$1.1459 per US dollar to C$1.1327.

Brent crude, the international...

Dollar rises on positive data 25 Dec at 8 AM The dollar has moved higher because economic data coming out of the US appears to support the recent decision by the Federal Reserve to rein in its quantitative easing programme. However, market trading has been thin because of the Christmas holiday. The US currency gained 0.1 per cent to 104.29 yen.

The euro is currently flat...

Forex market waiting for Fed announcement 16 Dec at 8 AM All eyes this week are on the policy meeting at the US Federal Reserve due to take place tomorrow and Wednesday. Investors are watching closely to see if the central bank will finally announce that it is to taper its massive bond buying programme. It is still anyone’s guess as to whether Fed chief Ben Bernanke will announce a reining in of...

Euro hits six week high against dollar 10 Dec at 8 AM The euro has managed to hit its highest level in six weeks against its US rival despite last week’s strong job figures coming out of the US and low interest rates and slow economic conditions within the eurozone. The single currency has also managed achieve a five-year high against the yen.

Some analysts believe that strong...

Commodity currencies up on Chinese economic data 2 Dec at 9 AM Solid factory growth in China during November has given a boost to commodity currencies. Better than expected economic data coming from the world’s second largest economy saw investors buying up New Zealand and Australian dollars.

The kiwi is up 0.5 per cent to $0.8162 and the Aussie has risen 0.2 per cent to $0.9118. Both...

Japan welcomes new government as yen slides 26 Dec at 9 AM As Japan prepares for a new government and Prime Minister today the yen has tumbled to its lowest level in nearly two years. Shinzo Abe is returning to power on the promise that he will boost the country’s economy by ramping up fiscal spending and driving down the value of the yen.

A weaker yen will make Japanese goods more...

Elections in Japan see the yen fall 19 Dec at 9 AM The elections in Japan have seen the yen drop dramatically against the dollar and the euro.

A landslide victory by the Liberal Democratic Party means Shinzo Abe will return to the position of prime minister. He has promised to introduce monetary easing in order to depress the value of the yen. He will also introduce a programme...

German economic confidence boosts euro 12 Dec at 9 AM The euro has strengthened against the US dollar as a monthly poll in Germany indicates better than expected economic sentiment that could keep the country from entering a recession. The figures released by think tank ZEW have sharply improved the morale of analysts and investors in Germany, encouraging them to take more risks. Broad-based...

Dollar drops on disappointing manufacturing data 5 Dec at 9 AM Poor manufacturing data coming from the US for November saw the dollar fall against the yen. Figures released by the Institute for Supply Management surprised many by showing a contraction of manufacturing activity to a three-year low. Brown Brothers Harriman senior forex strategist, Masashi Murata, said the dollar had been strengthening in...