Dollar Falls on China’s & Europe’s Manufacturing

US DollarThe US dollar declined today, along with other safe currencies, as manufacturing growth in Europe and China was somewhat higher than was predicted by forecasters, reducing demand for the currency as a safe haven.

HSBC Flash China Manufacturing PMI was at 49.8 in August, somewhat higher than the median forecast of 49.7 and the highest level in two months. Flash Eurozone Manufacturing PMI was at 49.7 this month, a little higher than expected (49.6), but lower than July figure — 50.4. The Standard & Poor’s 500 Index rose 1.5 percent, while the Stoxx Europe 600 Index went up 1.6 percent.

EUR/USD rose from 1.4357 to 1.4483 today as of 10:33 GMT and posted the high of 1.4499 during the day. GBP/USD climbed from 1.6450 to 1.6544, while reached the intraday high of 1.6572 earlier.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Earlier News About the US Dollar:

    * Dollar Rises While Traders Afraid of Recession (2011-08-18)
    * Good Week for Dollar Even After FOMC Statement (2011-08-13)
    * Week Begins with Fall of EUR/USD & USD/JPY (2011-08-08)
    * Future of the US Dollar with AA+ Rating (2011-08-07)
    * Dollar Declines as Stock Markets Continue Their Fall (2011-08-05)

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Decline of UK Service Industries Hurts Pound

Great Britain poundThe Great Britain pound tumbled today as the Services Purchasing Managers’ Index slumped in August, confirming a bad state of Britain’s economy and reducing attractiveness of the UK currency as a haven from problems in continental Europe.

The Services PMI dropped from 55.4 in July to 51.1 in August, only a little above the level of 50.0 that indicates no change. The report said:

    Respondents primarily blaming a weaker underlying trend in new business and general economic uncertainty. There were a few reports that the rioting and public disorder seen in some areas of the country in early August had adversely affected activity.

GBP/USD slumped from 1.6150 to 1.6076, following the jump to 1.6185, and GBP/JPY tumbled from 124.20 to 123.64 today as of 14:01 GMT.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    * Pound Profits from Terrible US Payrolls (2011-09-02)
    * Forecast: Fundamentals Aren't Favorable for Pound (2011-08-30)
    * Pound Goes Down as UK Economy Slows (2011-08-26)
    * GBP Falls vs. EUR with Consumer Confidence & Retail Sales (2011-08-25)
    * Pound Rises as Inflation Accelerates (2011-08-16)

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Euro Sinks After Merkel’s Party Loses Election

EuroThe euro plunged today, falling for the fifth consecutive session against the US dollar and the Japanese yen, after Germany’s ruling party lost election.

German Chancellor Angela Merkel’s Christian Democratic Union lost election in all six German states. The results of the elections ignited worries that now Germany will be even more opposed to paying bailouts with money of its taxpayers. The Stoxx Europe 600 Index of shares lost 2.8 percent, falling for the second day.

EUR/USD slipped from 1.4161 to 1.4121 and EUR/JPY fell from 108.92 to 108.56 as of 12:50 GMT today.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Earlier News About the Euro:

    * Euro Ends Rally as ECB Expected to End Interest Rates Hikes (2011-08-30)
    * Euro Falls for Second Day vs. Dollar (2011-08-25)
    * Euro Drops as Europe's Economic Growth Slows (2011-08-16)
    * Euro Weakens as Investors Shun European Bonds (2011-08-02)
    * Euro Slids for Second Day on Debt Crisis Concern (2011-07-28)

EuroThe euro plunged today, falling for the fifth consecutive session against the US dollar and the Japanese yen, after Germany’s ruling party lost election.

German Chancellor Angela Merkel’s Christian Democratic Union lost election in all six German states. The results of the elections ignited worries that now Germany will be even more opposed to paying bailouts with money of its taxpayers. The Stoxx Europe 600 Index of shares lost 2.8 percent, falling for the second day.

EUR/USD slipped from 1.4161 to 1.4121 and EUR/JPY fell from 108.92 to 108.56 as of 12:50 GMT today.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Earlier News About the Euro:

    * Euro Ends Rally as ECB Expected to End Interest Rates Hikes (2011-08-30)
    * Euro Falls for Second Day vs. Dollar (2011-08-25)
    * Euro Drops as Europe's Economic Growth Slows (2011-08-16)
    * Euro Weakens as Investors Shun European Bonds (2011-08-02)
    * Euro Slids for Second Day on Debt Crisis Concern (2011-07-28)

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Third Week of Gains for Aussie, Can Rally Be Sustained?

Australian dollarThe Australian dollar rallied for almost the whole week, posting the third week of gains against the US dollar in the longest run of weekly gains since April, but by the end of the week fundamentals became unfavorable for the currency.

The Australian dollar was rising on the speculation the Reserve Bank of Australia won’t cut the interest rates. Futures on interest rates indicate only 20 percent probability that RBA Governor Glenn Stevens will cut the bank’s main rate on September 6. Most traders believe that there is 80 percent chance the central bank will maintain the key rate unchanged this month. Australia’s Cash Rate is considered the biggest target lending rate among developed nations.

The rally of the Aussie looked unstoppable until the US non-farm payrolls came out, sending markets in disarray and destroying risk appetite as they came out even worse than most pessimistic forecasts. The Australian currency managed to stay above this week’s opening, but erased three days of gains against the dollar and the yen. What’s worse, it looks like the growth-linked currency may continue to fall next week as risk-aversion style of thinking is returning to markets.

AUD/USD opened at 1.0583, jumped to 1.0764 and closed at 1.0641 this week. EUR/AUD slid from 1.3692 to 1.3346. AUD/JPY jumped from 81.23 to 82.81 during this week before closing at 81.71.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Earlier News About the Australian Dollar:

    * Australian Retails Sales Go Up, Aussie Follows (2011-09-01)
    * Building Permits in Australia & New Zealand Rise, Aussie & Kiwi Gain (2011-08-30)
    * Aussie Recovers on Stevens' Speech (2011-08-26)
    * Australia's Dollar Weakens on Germany's Consumer Confidence (2011-08-25)
    * Australia Dollar Receives Help from Commodities (2011-08-17)

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US Dollar Suffers From Terrible Nonfarm Payrolls

US DollarThe US dollar fell against other major currencies, including the Great Britain pound and the Japanese yen, today after the non-farm payrolls showed that job creation in the US stalled. The currency also slipped against the euro, but later rebounded.

US non-farm payrolls showed no employment growth in August. That’s much worse than the market expectations (growth by 74,000) and the worst reading since September 2010, when employment declined by 95,000. Average hourly earnings dropped 0.1 percent, while markets counted on an increase by 0.2 percent. The poor economic report renewed speculations that the Federal Reserve needs third round of asset purchases, known as quantitative easing, to bolster the economic recovery in the United States.

The Dollar Index managed to rise 0.3 percent to 74.683 today from 74.479 yesterday. The dollar trimmed losses versus the pound and the yen, as well as rebounded versus the euro. The Standard & Poor’s 500 Index plunged as much as 2.3 percent.

GBP/USD climbed from 1.6177 to 1.6253 before trading at 1.6220 as of 19:40 GMT today. USD/JPY fell from 76.91 to 76.80 and touched low of 76.52 intraday. Meanwhile, EUR/USD tumbled from 1.4257 to 1.4199.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Earlier News About the US Dollar:

    * US Manufacturing Expands, Dollar Profits (2011-09-01)
    * USD Gains vs. EUR & CHF, Falls vs. JPY (2011-08-30)
    * Fundamentals are Bad for US Dollar, But Week Wasn't Bad (2011-08-27)
    * Dollar Drops After Bernanke Speech & GDP Report (2011-08-26)
    * Will Bernanke Announce QE3? Will Dollar Decline? (2011-08-25)

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Franc Jumps as US Payrolls Show Zero Growth

Swiss francThe 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.

US non-farm payroll employment showed no change in August, while the unemployment rate remained at 9.1 percent. Analysts predicted an increase of payrolls by 74,000. July value was revised down from 117,000 to 85,000. It’ll be interesting to see how the Federal Reserve will react to such disastrous economic data and what steps it’ll take.

USD/CHF plunged from 037954 to 0.7811 as of 13:45 GMT today. Earlier, the currency pair reached 0.7711, the lowest level since August 12.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    * Franc Rallies as SNB Doesn't Intervene (2011-09-01)
    * Franc Falls as Bernanke Improves Sentiment on Markets (2011-08-26)
    * Franc Gains as Markets Return to Risk Aversion (2011-08-24)
    * Franc Falls for Second Day on Risk Sentiment (2011-08-24)
    * Franc's Rally Fails on Euro-Peg Speculation (2011-08-23)

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Market Sentiment Improves, South Korean Won Gains

South Korean wonThe South Korean won gained today as the comments of Federal Reserve Chairman Ben S. Bernanke last Friday increased risk appetite among Forex market participants, bolstering appeal of higher-yielding currencies.

Bernanke made comments on August 26 about ability of the US to support growth of its economy in the long run. Markets reacted positively and traders began search for higher-yield. South Korean trade balance surplus widened to $4.94 billion in July from $2.03 billion in June.

USD/KRW fell from 1,080.10 to 1,073.50 today as of 13:46 GMT.

If you have any questions, comments or opinions regarding the South Korean Won, feel free to post them using the commentary form below.

Earlier News About the South Korean Won:

    * Korean Won Falls on Anticipation of Crisis (2011-08-19)
    * Korea's Won Retreats After Rally (2011-08-12)
    * South Korea Holds Interest Rates, Won Goes Lower (2011-08-11)
    * South Korean Won Suffers from Europe's Troubles (2011-07-12)
    * Higher South Korea's Inflation Leads to Gains for Won (2011-07-01)

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Rand Advances with Stocks & Metals

South African randThe South African rand rallied today, rising to the highest level in more than a week against the US dollar, as stocks and metals advanced after the speech of Federal Reserve Chairman Ben S. Bernanke last week.

Bernanke said last Friday that the Fed has means to support growth of the US economy, improving market sentiment. The main South African stock index jumped 1.7 percent as prices on the London Metal Exchange increased for a fourth day. South Africa’s economy itself performs not that good, though, and many investors still convinced that the nation’s central bank will cut interest rates.

USD/ZAR fell from 7.1300 to 7.0810 today as of 9:56 GMT and touched 7.0680 — the lowest level since August 17.

If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.

Earlier News About the South African Rand:

    * Rand Weakens on Prospect of Interest Rates Cut (2011-08-22)
    * Rand Near Monthly High vs. USD on Rate Difference, US Uncertainty (2011-07-26)
    * Rand Weakened by Credit Rating Outlook for Greece (2011-07-05)
    * Rand Weakens with Commodities on US Growth Forecast (2011-06-23)
    * South African Rand Falls on Greek Crisis, Trims Losses (2011-06-20)

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Fundamentals are Bad for US Dollar, But Week Wasn’t Bad

US DollarThe fundamentals this week were negative for the US dollar, weakening the currency against some major counterparts, but performance of the greenback wasn’t that bad, considering all the pressure to the downside.

There were plenty of bad new for the dollar this week. Bad housing data, rising unemployment claims and slower that expected growth of the US economy. The week ended with the speech of Ben Bernanke, who hinted at possibility of additional stimulus without detailing an actual plan.

The dollar was dragged down by the unfavorable fundamentals and fell against the euro and commodity currencies (including the currencies of Canada, Australia and New Zealand). On the other hand, the dollar gained against the franc and rallied versus the yen before losing its gains by the end of the week as there aren’t many choices for investors who need a safe currency, but afraid of interventions of Japan and Switzerland. The pound also fell against the greenback as Britain has its own problems that erase attractiveness of the nation’s currency.

Next week may also be hard for the dollar. Analysts predict another unfavorable report about hosing and are pessimistic about employment data.

EUR/USD climbed from 1.4376 to 1.4498, while during the week it dropped to 1.4327. USD/CHF climbed from 0.7904 to 0.8058 and reached the daily high of 0.8157. AUD/USD surged from 1.0380 to 1.0569.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Earlier News About the US Dollar:

    * Dollar Drops After Bernanke Speech & GDP Report (2011-08-26)
    * Will Bernanke Announce QE3? Will Dollar Decline? (2011-08-25)
    * Dollar Gains Before Bernanke Speech (2011-08-24)
    * Dollar Falls on China's & Europe's Manufacturing (2011-08-23)
    * Dollar Rises While Traders Afraid of Recession (2011-08-18)

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Pound Goes Down as UK Economy Slows

Great Britain poundThe 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 revised figure for growth of UK gross domestic product in the second quarter of 2011 was 0.2 percent, the same as in the preliminary estimate. It indicates slower expansion, compared to 0.5 percent growth in the first quarter. The report also mentioned that several special events affected Britain’s economy in Q2: the additional April public holiday, the royal wedding and the aftereffects of the Japanese tsunami.

GBP/JPY fell from 126.12 to 125.68 today as of 9:24 GMT and touched the daily low of 125.41 earlier. GBP/USD climbed from 1.6278 to 1.6332.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    * GBP Falls vs. EUR with Consumer Confidence & Retail Sales (2011-08-25)
    * Pound Rises as Inflation Accelerates (2011-08-16)
    * Osborne Refuses Review Spending Cuts, Boosting Pound (2011-08-12)
    * Pound Drops with Higher Trade Deficit (2011-08-09)
    * Pound Weakens on Worsening Consumer Sentiment (2011-07-21)

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Euro Falls for Second Day vs. Dollar

EuroThe euro fell against the US dollar for the second day and erased gains versus the Swiss franc today as investors are less willing to buy the currency amid signs of problems in Europe and concerns of global economic slowdown.

The decline of consumer confidence in Germany had its negative impact on the shared European currency. GfK stated that German consumer confidence fell from 5.3 to 5.2 this month and wrote in the report:

Economic expectations virtually collapsed in August, and in light of this, there has also been a moderate drop in Germans’ income expectations.

The euro also weakened on the speculation European lawmakers will extend the ban on short sales.

The global weren’t very supportive for the euro either as rising unemployment claims worsened sentiment of traders. Jobless claims in the US rose to 417,000 last week from the previous week’s revised figure of 412,000. Economists anticipated decrease to 403,000.

EUR/USD fell from 1.4412 to 1.4377 today as of 17:39 GMT. During the day the currency pair reached the high of 1.4474 and the low of 1.4327. EUR/CHF traded at 1.4437 today after earlier it dropped from 1.1465 to 1.1407.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Earlier News About the Euro:

* Euro Drops as Europe's Economic Growth Slows (2011-08-16)
* Euro Weakens as Investors Shun European Bonds (2011-08-02)
* Euro Slids for Second Day on Debt Crisis Concern (2011-07-28)
* Euro Posts Weekly Gain After Two Weeks of Losses (2011-07-23)
* Euro Drops as Optimism Caused by EU Summit Wanes (2011-07-22)

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Australia’s Dollar Weakens on Germany’s Consumer Confidence

Australian dollarThe Australian dollar fell today against most major currencies, before rebounding, as the report showed consumer confidence in Germany declined this month, reducing appeal of higher-yielding assets.


The drop of German confidence wasn’t very big as the GfK indicator retreated just to 5.2 in August from 5.3 in the month before. The report explained:


Despite the current crisis on the financial markets, Germans’ willingness to buy is surprisingly robust and increased further in August from an already high level. However, the worsening of the international debt crisis and rising fears of a return to recession for the global economy have clearly left their mark on the economic optimism of Germans.


AUD/USD traded at about 1.0466 today as of 11:16 GMT after dropping from 1.0471 to 1.0428.


If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.


Earlier News About the Australian Dollar:


* Australia Dollar Receives Help from Commodities (2011-08-17)

* Aussie Falls as RBA Minutes Don't Exclude Rates Cut (2011-08-16)

* Australia's Dollar Rallies Despite Rising Unemployment (2011-08-11)

* Consumer Sentiment Curbs Appeal of Aussie (2011-08-10)

* Australian Dollar Attempts Stop Decline, Fails (2011-08-09)

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Yen Advances, Japan Worried — New Intervention is Coming?

Japanese yenThe Japanese yen advanced today, heading to the highs against the dollar last seen during the post-World War II period, and made the Japanese government even more nervous about the currency’s strength.

Investors seek safer assets after North American and European stocks fell. The Standard & Poor’s 500 Index slid 2.6 percent today and the Stoxx Europe 600 dropped 0.9 percent.


The Swiss franc could be the place for investors to put their money in, but the move by Switzerland’s central bank to weaken the nation’s currency made the yen more attractive than the franc as a safe haven. Traders should be cautious, though, as Japan may also intervene to curb appreciation of its currency. Japan’s Finance Minister Yoshihiko Noda spoke today in parliament about danger of a strong currency to the nation’s economic growth.

USD/JPY dropped from 76.95 to 76.46 as of 15:10 GMT today after falling to the record low of 76.34. EUR/JPY sank from 110.63 to 108.37, while earlier it reached 108.31 — the lowest level since March 17.

If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

Earlier News About the Japanese Yen:

* Impact of BoJ Intervention on Yen Wanes (2011-08-09)
* Yen Slumps on BoJ Intervention (2011-08-04)
* Yen Gains on Greece & US Debt Problems (2011-07-28)
* EU Summit Eases Need for Safety, Yen Drops (2011-07-22)
* Second Week of Gains for Yen, Will BOJ Intervene? (2011-07-16)


This entry was posted on TopForexNews on Wednesday, August 10th, 2011 at 3:10 pm and is filed under Japanese Yen. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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NZ Dollar Heads for Second Weekly Drop

New Zealand dollarThe US dollar fell today, heading for a second weekly decline, as the problems of the US and Europe makes traders less willing to invest in currencies perceived to be riskier.

The currency of the South Pacific nations is linked to economic growth and thus reacts negatively to the prevalent pessimistic mood on markets. Such mood intensifies as the threat of the debt crisis spreading to Italy and Spain increases. The economic situation in the US isn’t much better and the report about consumer sentiment later this day is expected to show the confidence of the US citizens declined. The kiwi (the nickname of the New Zealand currency) erased most of its losses since the initial decline and now continues to go higher.


NZD/USD was down from 0.8316 to 0.8279 today as of 10:03 GMT, while reaching 0.8180 intraday. NZD/JPY dropped from 63.88 to 63.49 and the daily low today was 62.71.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

Earlier News About the New Zealand Dollar:

    Risk Rally Pushes NZD to Records vs. Dollar (2011-08-01)
    New Zealand Economy Expands, NZD/USD Jumps to Record (2011-07-14)
    China's Economy Makes Kiwi More Appealing, NZD/USD at Record (2011-07-13)
    Search for Higher Yield Draw Investors to Kiwi (2011-07-06)
    NZ Dollar Reaches Record vs. US Dollar on Business Confidence (2011-06-30)


This entry was posted on TopForexNews on Friday, August 12th, 2011 at 10:03 am and is filed under New Zealand Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Franc Plunges Heavily on Prospects of Euro-Peg

Swiss francThe Swiss franc slumped today against all major currencies as Swiss National Bank Vice President Thomas Jordan suggested that a short-term peg of the nation’s currency to the euro could be legal.

The SNB was attempting to weaken the Swiss currency for several years. So far such attempts were futile. There is a difference this time, though, as a peg wouldn’t have just one-time effect as the previous interventions, but would put a continuous pressure on the franc. It looks like Switzerland’s central bank is ready for unconventional measures and such measures can help the bank to achieve its goals for making the franc’s strength less threatening to the country’s economy.

The potential weakening of the Swiss franc can pose an interesting question (in case the SNB would be able to achieve such weakening, of course): what currency can be considered a safe haven? The yen is also under pressure of interventions, while the dollar doesn’t look that safe. Perhaps investors, interested in safety, would shun the Forex market altogether.

USD/CHF surged from 0.7263 to the daily high of 0.7687 today before trading near 0.7617 as of 21:01 GMT. EUR/CHF climbed from 1.0296 to 1.0843. CHF/JPY slumped from 105.72 to 100.88.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    SNB Moves In, Franc Moves Back (2011-08-10)
    Fed Plans Keep Zero Rates till 2013, Dollar Hurt (2011-08-09)
    CHF at New Record vs. USD, Gains vs. Other Currencies (2011-08-08)
    Intervention: Way to Weaker Franc or Bluff of SNB? (2011-08-08)
    Swiss Franc Prevails Despite Intervention (2011-08-04)


This entry was posted on TopForexNews on Thursday, August 11th, 2011 at 9:01 pm and is filed under Swiss Franc. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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Osborne Refuses Review Spending Cuts, Boosting Pound

Great Britain poundUK Chancellor of the Exchequer George Osborne rejected demands of the opposition to reconsider the spending cuts that are biggest since World War II. The Great Britain pound reacted positively to the news.

Opposition to the spending cuts is strengthening as riots and looting in London intensifies and spreads to other cities. Yet Britain’s government remains firm in their intention to maintain the record cuts. Osborne explained that the credibility of the UK austerity measures helped in attracting investors to government bonds, aiding the nation’s economy. Prime Minister David Cameron claimed that the planned decrease of expenditure on the police can be performed “without any reductions in visible policing”.

The sterling gained against the euro, the dollar and the yen on yesterday’s trading session. The UK currency slid against the greenback as today’s trading session has started. The pound attempts to hold against the yen, but slowly gives up gains. Against the euro Britain’s currency rallied for three sessions and still hasn’t showed signs of weakening.

GBP/USD advanced from 1.6132 to 1.6237 and retreated to 1.6212 as of 1:34 GMT today. GBP/JPY rallied from 123.95 to 124.72 on the previous trading session and attempts to hold at this today. Meanwhile, EUR/GBP fell from 0.8770 to 0.8750 today in the third straight session of declines.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    Pound Drops with Higher Trade Deficit (2011-08-09)
    Pound Weakens on Worsening Consumer Sentiment (2011-07-21)
    GBP/USD Erases Losses After BOE Minutes (2011-07-20)
    UK House Prices Fall for First Time in 2011, Sterling Weaker (2011-07-18)
    Pound Falls vs. Euro on Jobless Claims (2011-07-13)


This entry was posted on TopForexNews on Friday, August 12th, 2011 at 1:34 am and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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What are Forex Currency Prices?

Currency is the basic unit used mainly for the exchange of goods and services. There are several different currencies used all around the world. All the countries in the world have their own currencies. There are currencies as strong as US dollar and as weak as Zimbabwean dollar. The value of a currency is necessary for forex trading.
Change in World Economy
Balancing Money and the Earth



Previously the currencies of the world were valued on the basis of their comparison to the price of gold. The price of gold in the international market was a determinant factor in deciding the price of the currency. To maintain the price of their currency states were bound to keep reserves in the form of gold. To make it simple we can say that in the past the more gold reserves a state had the higher the price of its currency would gain.
What Laid the Foundations of Forex

With the passage of time world economy has witnessed many changes. The end of Barton Wood system changed world’s reserve system. The growth of economy required the change in world’s reserve system.

The reserved system which lied previously on gold was replaced with US dollar. Some countries are using Euro as their reserves. However most of the states have a dollar based reserve system.
The Currency Prices

The prices of foreign currencies are referred to as forex or FX in international market. The currency exchange is also known as foreign exchange. These currencies are compared mainly in pairs. The aim is to determine which currency has more value as compare to the other currency. The major pairs are US dollar against the Japanese yen, and/or the British pound against the European euro. US, Britain, Japan, Europe and some other states fall into the category of great economic zones. The currencies of great economic zones are needed worldwide for trade. The Australian dollar, Swiss franc, and Canadian dollar also fall in the category currencies of great economic zones. Hence, the forex currencies of these states are traded in the international banks.
Why Forex is Necessary

What are Forex Currency Prices

The forex is vital for many reasons. The forex currencies are necessary for international trade and commerce. Several banks and other financial institutions trade these currencies for their own benefits.

Not all the currency pairs are as strong as the pair of US dollar and Japanese yen. There weak currency pairs also exist. The pairs of US dollar and Polish zloty and Japanese yen and Thai baht are examples of weak pairs.
Currency Pairs

There is another category of currency pair, which is not used in forex as much as the strong pairs or to some extant the weak pairs. These currency pairs are known as exotic pairs. The currency pairs discussed so far are traded widely. The currencies of rest of the countries are traded for some specific purpose.

Tourists or businessmen, who need these currencies, either get them in exchange of their own currencies or trade them vis-à-vis dollar. In this method of exchange a currency is valued in dollar, and the buyer gets the currency of his need according to its value in dollar.

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How to Make and Lose a Fortune in Forex?

If you are looking for an online job on internet then you should consider online trading. You can earn a remarkable amount of money by forex trading. When it comes to the fastest, efficient and the most workable online trading then forex trading is the answer. Forex trading offers many benefits for traders if they get enough learning of forex trading before officially starting it. A number of features of forex trading make it is the most suitable tool to generate online money.
Useful Information about Forex Trading Market

When you consider working as a forex trader, you should gather some authentic information about forex trading market to work as an effective forex trader. Following is the useful information for you to get a quick start as a forex trader with full confidence.
Timings of Forex Market

Timings of Forex Market

Forex market remains open 24 hours a day around the world and it starts working from Sunday (afternoon/evening) till the following Friday (afternoon/evening). You can work online from anywhere in the world and become a day trader.
Risk Probability

Forex market is risky for amateur traders, but still if you learn before start working as a forex trader then you can trade effectively with low risk.
Amount of Investment

You can start your forex trading account will a very little amount of investment. This is because the technological advancements that have made it is easier for home based small investors to start online trading with only few hundred dollars.
Forex Pips

Forex market allows you to take a start with little investment and you can easily find brokers regardless of the amount you can invest. A number of brokers are always available to offer you their services.
Price Actions

You should be aware of the changes occur in price. It is obvious that you cannot know about the exact change in price but you can predict these price actions by using any analysis method.

Price actions are the reasons for the continuous working of forex market and without price fluctuations there will be no forex trading.
Currency Market

Currency Market

If you decide to trade in currency market then you can generate profit by the fluctuations occur in price. On the other hand, if you decide to trade in shares and stocks, then you have to rely only on the rising of market.
Dummy Trading Accounts

You can take a start with a dummy forex account. These accounts are being offered by the online forex brokers. You don’t have to invest real money unless you feel sure about your success in forex trading.

It is recommended to you to learn forex trading or take a course of forex trading before starting it officially. After that you should choose a system and try to stick with that system. Be persistent and train yourself to bear the ups and down of forex trading. You also have to learn from your mistake if you want generate real profits. For online trading, it is highly important for you to find an authentic website. Search a reliable forex trading system that you feel is suitable for your personality type and for your lifestyle.

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Best of Forex Trading Tools

The introduction of Forex trading tools have made this business more simple and easy to understand for newbie’s. Actually, none of the device can be considered as ideal for the sake of currency trading. Nonetheless, the professional in this field have developed couple of practical instruments that offer a comprehensive idea about the currency market.
Tools Helps to Make Good Profit



The more skilled traders in this professional have accepted the fact that right t use of Forex trading tools will bring substantial earnings.
Forex Trading Tools Update the Knowledge of Traders

Forex Trading Tools

The Forex trading entails the swapping of international currencies and also earning money through this practice. The market of Forex trading has been scattered on geographical basis and is illustrated by large investments. The Forex trading tools facilitate the trader in getting the latest information about the market trends; hence he/she can earn more profits.
Tools Provide Daily Summaries of Important Currencies

The most vital characteristics of Forex trading tools are to supply the reviews of main currencies on daily basis. These also provide weekly reviews of the currencies besides the other main updated information about the market. This aids the traders in understanding the most recent situation of the currency market through which they evaluate the market stipulation. By having a thorough knowledge about the currency market, the traders can forecast the potential tendencies and invest accordingly.

In this regard couple of mechanical softwares has been launched as Forex trading tools. The development in technology has invented certain softwares that gather all the essential details robotically and save this information for the trader.
Easy to Analyze Currency

Currently the task of evaluating the currency has become very simple. In this regard, the novice traders particularly use these gears in practical and useful manner. These software tools can be downloaded from internet for an insignificant cost. Now you can access the latest market situation just with few mouse clicks.
Forex is One of the Biggest Trading Markets

Numerous currencies are traded on daily basis in Forex trading market. It is therefore, not an easy job to maintain the record of whole trade with the alteration in rates of different currencies.

As a vigilant trader, one must be aware of the most recent happening in the currency market. This purpose can solely be achieved with the help of Forex trading tools. It provides an immediate access to the trading reviews; else it would not be easy to acquire these reviews.
The Updated Information Makes the Decision Easier

If the trader has information about the prevailing rates as well as the daily and weekly reviews, he/she can take more appropriate decision. There are couple of more tools that assist trader to keep an eye on rates of interest.

These tools also provide them complete accessibility to the dictionary as well as the monetary almanac. All these gadgets are mandatory for Forex trading.
The Forex Trading Tools are Available at Your Home

Forex trading tools are within the reach of traders

Now these Forex trading tools are within the reach of traders in their own homes. The biggest benefit of Forex trading is flexibility of time, because the currency market is open 24 hours a day. The trading activities can be performed with the help of internet and the cash can also be relocated automatically with the help of electronic machines

If you have PC as well as the internet at your place, you will have an easy access to the Forex tools and the foreign currencies for trading. There are plentiful companies on internet that offer the functional gadgets, such as comprehensive market study for easy trading.
Online Tools Help in Saving Money

These online tools can be downloaded from internet free of cost. If a trader would like to save cash, he/she can utilize these online tools. These online companies issue financial reports and also have various discussion forums

The existing Forex graphs as well as the other covert trading information unearthed by the internet companies are also very helpful for the investors. The combinations of one’s skills with the Forex trading tools will surely make him/her triumphant.

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“Currency Manipulation” Will Continue, Despite G20

Last month, the G20 finally agreed on the specific factors that would be used to determine whether a country was manipulating its currency. Despite being watered-down (by the usual suspects), the so-called “scorecard” is nonetheless extremely substantive. Unfortunately, the resolution will be backed only by “peer pressure,” rather than any kind of real enforcement mechanism, which means that in practice it is basically worthless.


While the proximate goal of the resolution is to eliminate exchange rate manipulation, it’s ultimate goal is to minimize the risk of another economic/financial crisis. Towards that end, a country’s “budget deficit levels, the external imbalance and private savings rates” will be closely scrutinized, and will be warned if any of these factors reach levels that are deemed to be unsustainable. The idea is that an early warning system will prevent the global economy from reaching a point of disequilibrium that is so severe that crisis would be impossible to avert.

Of course, the problems with this program are manifold. First of all, there are no concrete numbers. For example, it’s not clear how large a country’s national debt or trade deficit has to reach before it receives a phone call and slap on the wrist from the G20. In fact, you could argue that the same imbalances that precipitated the crisis are largely still in place, which means that some countries should have been warned yesterday.

Second, there is no meaningful enforcement mechanism. That means that countries that disregard the resolution don’t really have anything to fear, other than the wrath of investors. In other words, if governments and Central Banks know that they can manipulate their exchange rates with impunity, what’s to stop them? Look at Japan: its public debt is the highest in the world. It runs a perennial trade surplus. Its citizens are notorious savers. And yet, when the Yen rose to a record high, which you might expect from such an imbalanced economy, the G7 (in this case) took the unusual step of pushing the Yen down. I’m not saying this wasn’t the right thing to do, but what kind of signal does this send to other rule breakers.

While all emerging market countries took an active interest in exchange rates (and seek to exert some control over their currencies), China is certainly Public Enemy #1, and is the clear target of the “currency manipulation” talk. To its credit, the People’s Bank of China (PBOC) has permitted the Chinese Yuan to appreciate 20% against the Dollar (probably 30% when inflation is taken into account) over the last few years. Meanwhile, both internal government statisticians and the IMF expect its current account surplus to narrow to a mere 5% in 2011, as its economy slowly rebalances.

In this sense, I think China is a case in point that the best enforcement mechanism is reality. Specifically, China has reached a point where it cannot continue to pursue an economic policy based on exports, without spurring inflation and causing the inefficient allocation of domestic capital (such as in real estate). It must raise interest rates and accept the continued appreciation of the RMB is an unavoidable byproduct.

The same goes for other countries that attempt to hold their currencies down. If they can get away with it, then so be it. If not, I can guarantee that it won’t be the G20 that forces them to change.

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