Morgan Stanley: US Dollar to Strengthen on Yuan Move
The US dollar will strengthen against non-Asian currencies, following China’s move to drop the yuan’s two-year-old currency peg to the greenback, according to Morgan Stanley. The People’s Bank of China signaled that it will drop the yuan peg to 6.83 US dollars, which the central bank implemented in order to shield China’s domestic export industry…. Continue Reading
Risk Demand Strong; Euro, Crude Oil Gain
Demand for risk appears broad-based and quite strong in early trading, potentially signaling renewed strength in the short-term. The euro is gaining sharply on the session against the US dollar, which speaks volumes for risk appetite. Last priced at 1.2290, the EUR/USD traded above the 1.23 handle earlier in the session. Crude oil, too, is… Continue Reading
UBS: US Dollar to Become Growth Currency
The US dollar will become known as a growth currency — not just a safe haven — over the next 10 years, according to UBS. Mansoor Mohi-uddin, global head of Forex strategy at the firm, argues that the US economy is set to outpace its counterparts in Europe and Japan. As a result, the dollar… Continue Reading
Morgan Stanley: ‘Elevated’ Risk of G3 Intervention
Morgan Stanley sees an “elevated threat” of a currency intervention by the central banks of the U.S., Europe and Japan going forward. According to Sophia Drossos, co-head of currency strategy at the firm, a joint intervention by the Group of Three is growing increasingly likely. Ms. Drossos adds, “The strongest warning signals in our model… Continue Reading
UBS: Euro, Sterling Heading Significantly Lower Against Dollar
UBS is revising its forecasts for the euro and British pound against the US dollar as economic policies begin to diverge and favor the greenback. Larry Hatheway, chief economist at UBS, along with his team, wrote to clients that the euro will trade down to $1.15 by December and $1.10 by the end of 2011…. Continue Reading
BlueGold: Central Banks May Shift From Euros to CAD, AUD
The euro may face additional downward pressure, as central banks shift their reserves from euros to Canadian and Australian dollars, according to BlueGold Capital Management. Stephen Jen, a managing director at the hedge fund, says that the eurozone debt crisis may spur a global shift in reserve holdings away from the euro. He adds, “As… Continue Reading
EUR/USD, AUD/USD Rest Comfortably at Lows; More Downside Expected
The euro and Australian dollar appear quite comfortable at their present levels, as both currencies test longer-term lows against the US dollar. The EUR/USD failed to retrace any ground after breaching the 1.30 handle for the first time since April, 2009, during yesterday’s session. Last priced at 1.2975, the daily close for the EUR/USD came… Continue Reading
Daily Forex Signal: Buy EUR/CAD
Please visit the forum to view today’s Forex signal on the EUR/CAD. To view the signal, you must be a free registered member of Forex Playbook. Please login or register for free. Please visit the forum to view today’s Forex signal on the USD/CAD. To view the signal, you must be a free registered member of Forex Playbook. Please login… Continue Reading
Equities, Gold Move Higher Alongside US Dollar Strength
Equities markets have been strong in the early goings of the day’s session, as news of M&A activity has fueled investor appetite for risk. Gold, meanwhile, is pushing ever closer to the $1,200 mark, as investors continue to hedge long positioning by way of the precious metal. The Dow and S&P 500 are nearing their… Continue Reading
Spain Jobless Rate Tops 20%; Euro Rises on Weekend Bailout Hopes
The unemployment rate in Spain continued higher in the first quarter of 2010, extending to a 20.1 percent rate of joblessness from 18.8 percent in the preceding quarter. The data released from Spain’s National Statistics Institute came in higher than expected; the consensus estimate among analysts had been for 19.8 percent unemployment in the latest… Continue Reading
