Posts for 'Exchange Rates' Category

Nevertheless, the dynamics of a rising EUR/USD pair froze at around 1.2275, which is 50% correction from 1.2298 rollback to 1.2151. Current EUR/USD exchange rate is 1.2263. Meanwhile, the EUR/GBP pair failed to rise above stg0.8180.

The counter sales resisted to rising dynamics of this pair, making the EUR/GBP fall back from the maximum recovery stg0.8182. The pair is currently trading at around stg0.8174. It is said that support will be provided in stg0.8145/40 and if the upward movement is renewed, the pair is going to break above the level of stg0.8182, opening way to its future growth to the area of stg0.8200.

The euro (EUR €) could have declined further but some European nations hinted they will cut spending. The Prime Minister of Spain, Jose Luis Rodriguez Zapatero, announced that his country will cut spending. The plan is to cut public sector wages 5 percent by 2011 and then freeze them. Greece is also looking at austerity measures. Portugal was able to entice investors to buy $1 billion in 10-year bonds.

Investors are still concerned. Greece is still facing a huge deficit. The currency could be diluted with the potential influx of $1 trillion in aid. British Poun. According to two of our surveys, the British Pound (GBP £) fell against the dollar (see the details in the charts below). Investors are still worried about the UK fiscal problems. The new coalition government has announced government cuts.

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The Euro gained against the dollar while the Yen fell away, reversing the Forex trend last week (see charts below). On Monday of last week the Euro was .7578 per dollar and on Friday it was .784.

Today it was .7812 per dollar.After weeks of protests, the German legislature approved their portion of a EU100 billion bailout package for Greece. The dollar and Yen benefited from the chaos in Europe last week.

There is another bailout package, according to Bloomberg. European finance ministers held a 14-hour meeting over.

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The forex currency exchange market was volatile today, according to surveys conducted by Best Syndication (see charts below).
Euro.

The Euro finally gained against the dollar after 14-month lows. Chaos in the U.S. stock market and a solution to the Greek debt crisis may be on investor’s minds.

Germany’s Parliament approved a EUR22.4 billion bailout for Greece. German citizens have been resistant and very vocal against the bailout.

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The dollar climbed Thursday against all major currencies that we monitor. The Euro climbed slightly but has since declined again.The Euro recovered early Thursday on hopes and in anticipation of a bailout for Greece. One report suggests that the bailout may be “larger” than previously thought, but there is still a lack of details. The crisis is not limited to Greece.

Investors are concerned that Portugal may be the next victim of the economic downturn. According to a Dow Jones report, the cost of insuring $10 million of Portuguese bonds against default for five years rose $50,000 to $430,000. Citing Markit, the cost for insuring $10 million of Irish and Spanish debt rose $33,000 and $17,000 respectively.

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The Standard and Poors rating agency downgraded Greek government debt early Tuesday to junk-bond status. This action brought the Euro down in relation to other currencies including the dollar, according to a report from Reuters.

Our survey showed otherwise (see charts below).The (Greek) outlook is negative. At the same time, we assigned a recovery rating of '4' to Greece's debt issues, indicating our expectation of "average" (30%-50%) recovery for debtholdersIn the event of a debt restructuring or payment default,” S&P said. “The 'AAA' transfer and convertibility assessment is unchanged.” Free Real time stock quotes.

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Currency exchange rates have led to four-fifths of overseas property owners witnessing an increase in maintenance costs for their home over the past year. Research from HiFX revealed that 21 per cent of these people are now struggling to meet the increased costs.

An average overseas home owner in France and Spain transferred £10,000 a year to meet maintenance costs two years ago, the study found. However, today, households need to move £11,896 to meet the same costs due to the weak pound.

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The US dollar has been falling against every other currency including the Canadian dollar. The euro has been losing value in 2010 since the Greece debt crisis has cast a shadow on the whole union. Some have said the crisis has cast waves of insecurity and volatility over the currency.

There is some good news as far as China is concerned. U.S. Treasury Secretary, Timothy Geithner said that China will likely let their currency float separately from the dollar.

It will be more flexibly and hopefully will not be pegged to the dollar. “As a strong, large, independent, growing economy, it doesn't make sense for that country to run a monetary policy exchange-rate regime that effectively lets the Federal Reserve set interest rates for their economy," Geithner said.

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The International Monetary Fund or IMF, long a citadel of free-market thinking, conceded in a little-noticed official report in February that controls on the international movement of capital may be appropriate in some circumstances. This report deserved more attention, because this is big.

Before socialists break out their long-dormant bottles of Swedish champagne and capitalists make plans to emigrate to some planet with freer markets, it's important to understand what capital controls really are. They are restrictions on the ability of (primarily) financial institutions and multinational corporations to move large blocks of capital around the world.

Such restrictions were in force in most major capitalist economies during the Bretton Woods era of fixed exchange rates (1945-71)--otherwise known as the Golden Age of the American economy, or what the French to this day call les trente glorieuses, the Thirty Glorious Years. The American and world economies performed better in this period than ever before or since. And therein lies the tale.

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After turning down US's suggestions on raising the value of the exchange rate for enhancing balance in the global economy, China has been expressing its confidence in keeping Yuan Stable, since Friday.

Liu He, a senior official with the ruling Communist Party explained that in view of the crisis situation creeping up in the economy, China has decided to keep the exchange rates stable as there are more benefits attached to it. "If exchange rates are volatile, trade will have no anchor", he said.

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