Investor Confidence Takes Flight In Global Markets
Markets around the world are being driven lower by doubts over the debt crisis afflicting the USA and Europe – although Japan has debts which are more significant – and concerns that the anaemic global recovery is petering out. If the recovery ends, then another recession will ensue and with it demand will fall.http://www.dailyforex.com/forex-fundamental-analysis/2011/08/Investor-Confidence-Takes-Flight-In-Global-Markets/8603
Investors Shun Higher-Risk Currencies in Favor of Safe Havens
With equity markets falling globally, investors have sought U.S. Treasuries and the safe haven assets; gold, the Swiss Franc and the Japanese Yen, and to some extent the U.S. Dollar, have all been pushed higher.http://www.dailyforex.com/forex-news/2011/08/Investors-Shun-Higher-Risk-Currencies-/8601
Japan’s Trade Surplus Widens
Japan's rate of contraction of the economy in the second quarter of the year was better than expected, coming in at a contraction of 1.3%. Further good news has now emerged in the trade surplus figure for July which came in at ¥72.5 billion ($946 million). However, as they say, the devil is in the detail.http://www.dailyforex.com/forex-fundamental-analysis/2011/08/Japan-Trade-Surplus-Widens/8591
CHF Down vs US Dollar and Euro on Speculation of Forwards Intervention
A day after the Swiss National Bank intervened in their currency’s rise and the Swiss Franc is continuing to fall lower against the U.S. Dollar and the common currency Euro in Asian trading largely, however, a factor of investors’ speculation that the SNB will dump more liquidity into the forex forwards market.http://www.dailyforex.com/forex-news/2011/08/CHF-Down-vs-USD-and-EUR/8589
European Powerhouse Falters
The German economy is widely regarded as the powerhouse of Europe and had been seen to be leading the recovery in the region with (relatively) impressive growth figures which made the performance of the rest of the Eurozone look positively lack-lustre.http://www.dailyforex.com/forex-fundamental-analysis/2011/08/European-Powerhouse-Falters/8583
Euro Struggles to Gain Footing After Merkel/Sarkozy Summit
Following yesterday’s Sarkozy/Merkel summit which failed to yield any promise of the creation of a Eurozone bond scheme, the Euro sank against the U.S. Dollar. Also hurting the common currency was unexpectedly weak German GDP data.http://www.dailyforex.com/forex-news/2011/08/Euro-Struggles-to-Gain-Footing-After-Merkel-Sarkozy-Summit/8578
Eurozone Expansion in Q2 Lower than Expected
Although the GDP in the Eurozone rose 0.8% in the first quarter, new reports reveal that it rose just 0.2% in Q2 2011, the worst performance in the region since late 2009.http://www.dailyforex.com/forex-news/2011/08/Eurozone-Expansion-in-Q2-Lower-than-Expected/8574
Japanese Recession Continues But Signs Of Optimism Found
Figures just released for Japan’s Q2 2011 GDP are better than many analysts had predicted and are stoking optimism that the pace of the recovery in Japan is increasing. Analysts had expected to see annualised contractions of up to 2.6%, but the figure released by the Japanese Cabinet Office shows that the economy contracted by 1.3%.http://www.dailyforex.com/forex-fundamental-analysis/2011/08/Japanese-Recession-Continues-But-Signs-Of-Optimism-Found/8566
Germany’s Slowing Growth Pressures Euro
The Euro attempted to hold onto the 1.3% gain made during yesterday’s trading session but news of slowing growth in Germany, the economic driver of the Eurozone, is sending the Euro lower.http://www.dailyforex.com/forex-news/2011/08/Slow-German-Growth-Pressures-Euro/8564
Weekly Snapshot August 15-21, 2011
After registering a record low at 9.323, the U.S. Dollar Index has rallied in 5 waves. Implications are bearish early this week, followed by the next bull leg higher. Learn more about the US Dollar and other major currencies in this comprehensive weekly Forex snapshot.http://www.dailyforex.com/forex-fundamental-analysis/2011/08/Weekly-Snapshot-August-15-2011/8560
Euro Exchange Rate