After having hit a high at 1.4201 yesterday on reports the Vice-finance minister of China wasn?t aware of his government?s request to discuss use of the IMF?s SDR as an alternative. This doesn?t come as a surprise on the part of the Chinese government as we all know they are the largest holders of foreign exchange reserves and U.S Treasuries and have been very vocal about the massive spending on… (more…)
The dollar rose against major currencies yesterday after bleak U.S. jobs data renewed concerns about the economy and enhanced the greenback’s safe-haven appeal. The Euro was down 1.1 percent at $1.4002, retreating from $1.4201 hit on Wednesday, its highest level since early June. Adding to pressure on the Euro were comments from the European Central Bank President Jean-Claude Trichet that… (more…)
As we draw nearer to this year?s half-way mark it is clear that reports of a V-shaped recovery back in March we?re greatly optimistic. The sheer complexity of the global economic crisis and it?s repercussions on business climate has greatly hampered the economy?s ability to right itself. The rapid cutting of interest rates, vast amounts of liquidity injections have central banks tackling… (more…)
The Yen slipped across the board on monday due to higher oil price, gains in share prices and a better-than-expected sentiment in the euro-zone which boosted hopes of a global recovery, helping investor risk appetite. Investors seem to feel more confident these days and risky assets are bid again. The EUR carried on the trend set in London with continued buying versus the USD, consolidating on… (more…)
